United Kingdom’s Culture, Media, and Sports Committee has warned that crypto promotion in professional sports is harming supporters financially and damaging club reputations. They are concerned about the price volatility of fan tokens, which poses risks to sport supporters.
The committee is urging the UK government to tighten regulations surrounding fhe promotion of NFT projects due to increasing concerns about fraud. They want stricter regulations at all levels of promotion.
They are also advocating to introduce a ban on fan tokens in football/soccer as a tool for club engagement with supporters. This decision is primarily driven by the same issues— price instability and the lack of confidence among supporters when investing in these projects.
UK’s previous action’s on Crypto marketing
Strict regulations on crypto marketing have already been introduced by the UK Financial Conduct Authority (FCA). It also includes a ban on referral-based incentives.
However, the committee remains critical of sports clubs that use crypto for fan engagement. The FCA is accusing them of promoting volatile crypto asset schemes to extract more money from their loyal supporters while claiming promises of privileges and perks they cannot fulfill.
Messi responsible for igniting NFT craze
When Lionel Messi arrived in Major League Soccer’s Inter Miami his jersey had the striking “XBTO” logo on his jersey. It has undeniably reignited the crypto sponsorship trend in the world of sports.
This collaboration between the soccer superstar’s club and XBTO serves as a compelling example of the potential of crypto sponsorships. His influence has set the stage for a new era of engagement between athletes, brands, and the cryptocurrency industry. It’s clear that Messi has not only joined a new league but also reignited the NFT flame, illuminating the path for others to follow in the exciting intersection of sports and crypto.