Football clubs large and small are embracing crypto assets as a means of creating and sustaining engagement with fans. The first major club in the world to do so is Manchester United, who have announced that they will be using blockchain technology for their ticketing system. As a regulated investment, security tokens could fall under the jurisdiction of financial regulatory authorities, and their value as trading tokens will vary according to the club’s performance. Fans who believe they have lost money could pursue legal claims, while the club could face damage to its reputation.
Football clubs large and small are embracing crypto assets as a means of creating and sustaining engagement with fans. Blockchain-based fan token offerings (FTOs) give fans various exclusive rights, yet their similarity to initial coin offerings (ICOs) carries potential risks, such as their current lack of regulation. As a regulated investment, security tokens could fall under the jurisdiction of financial regulatory authorities, and their value as trading tokens will vary according to the club’s performance. Fans who believe they have lost money could pursue legal claims, while the club could face damage to its reputation.