The United Kingdom’s advertising watchdog warned Arsenal Wednesday about ads for its “fan tokens,” which are cryptocurrencies that have been adopted by soccer clubs as coronavirus decimates their revenue.
Advertising Standards Agency (ASA), said that two advertisements posted on August’s Arsenal website and Facebook were misleading because they didn’t make clear the risks of trading crypto or the potential tax implications.
The advertisement must not be repeated in the same format.
Fans of soccer and other clubs can vote on minor matters such as music played after a goal is scored or images posted on social media.
These tokens can be traded on exchanges just like any other cryptocurrency. They are susceptible to price swings and often have no connection to actual on-field performance.
The ASA’s decision is part of a larger focus by the watchdog on crypto ads in Britain.
A spokesperson stated that “Cryptoassets” are a priority issue for them. We won’t hesitate in taking action against ads that violate our rules.
It stated that London-based Arsenal’s advertisements were “irresponsible” because they exploited consumers’ inexperience and credulity, trivialising investment in cryptoassets.
Arsenal spokeswoman said that the company was seeking an independent review and would “endeavour” to follow the guidance of the watchdog.
The spokesperson stated that “We take our responsibilities regarding marketing to our fans very seriously.” “We carefully reviewed the communication to our fans regarding promotions and provided information about financial risks.”
Arsenal told the ASA that fan coins were intended to increase participation and are “materially different” from other cryptocurrencies used for payment.
Many fans dismiss the tokens as a superficial way to engage with their teams. Some fans say they enjoy a new way to interact with their teams.
Arsenal is among many clubs that are turning to other revenue sources after coronavirus lockdowns. Consulting Deloitte stated that this led to a 12 percent drop of earnings at Europe’s top 20 sports clubs over the last season.
Over 40 clubs across Europe and South America have launched fan tokens. Other English Premier League clubs who have launched or plan to launch fan tokens are the reigning champions Manchester City and Crystal Palace, Leeds, Everton, Everton, Aston Villa, Everton, Everton, Everton, Everton, Everton, and Leeds.
According to CoinMarketCap the largest fan token launched by Paris Saint-Germain has a value of $49 Million, compared to bitcoin’s $929 Billion. Arsenal’s totals are approximately $7 million.