British watchdog denies arsenal's soccer club for token ads with crypto

British watchdog denies arsenal's soccer club for token ads with crypto ...

The BBC, 22 Dec - The campaigner warned Arsenal over its "fan tokens," a cryptocurrency that soccer clubs in this year are developing over the money itself.

The (ASA) said two ads posted on Arsenal's website in August and on Facebook were "misleading" since they failed to clear the risk of trading crypto, potential tax implications or that the tokens are not regulated in Britain.

The ads weren't supposed to have appeared again in the same form.

Fan tokens allow fans of soccer and other sports clubs to vote on minor decisions, such as songs played after a goal.

These tokens can be traded on exchanges like other cryptocurrencies and can be prone to a wild movement in prices and can sometimes be fixed.

ASA has expanded the research on crypto ads in the United Kingdom.

"Cryptoassets are a red-alert priority issue for us," a spokesperson said. "We won't hesitate to act against advertising that break our rules."

The report said that the London-based Arsenal ads were "irresponsible because they exploited consumer's ignorance, credulity and banjolised investment in cryptoassets".

An Arsenal spokesperson said it would seek an independent review of the ruling and would "endease to comply" with the watchdog's guidance.

The spokesperson said that we took reasonable measures to protect our fans from the threat to promotion.

Arsenal told the ASA that fan tokens were designed to increase the participation of supporters, and had significant differences with other coins that were used in payment.

Many fans dismissed the tokens as not offering superficial participation, but adding to the cost of paying attention to their teams. Others say they appreciate the novel way of going with their teams.

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Arsenal have chosen to become an alternative revenue source after coronavirus lockdowns, which consultancy Deloitte said contributed to a 12% decline in earnings at 20 countries during the last season.

More than 40 clubs from Europe to South America have launched a fan token. One of the most popular English premier league clubs to launch it is Manchester City, Crystal Palace, Leeds, Everton and Aston Villa, which have already launched or are planning to launch it.

The largest fan token, which was announced in Paris Saint-Germain, has a total value of 49 million dollars, according to CoinMarketCap. A bitcoin token is the equivalent of 929 billion dollars, and Arsenal has a total worth about $7 million.

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