The United Kingdom’s Culture, Media, and Sports Committee asserts that the promotion of crypto assets and fan tokens in professional sports is detrimental to supporters.
“The promotion of crypto assets in professional sport is putting supporters at risk of financial harm and potentially damaging the reputations of clubs,” the statement declares.
The Volatility of Fan Tokens’ Prices Poses Risks for Sport Supporters
In a recent statement, concerns over the increasing prevalence of fraudulent non-fungible token (NFT) projects have been voiced by the committee. They call on the UK government to tighten regulations on promoting these projects at all levels.
Furthermore, the commitee encourages the government to prohibit fan tokens in football as a club’s metric of engagement with its supporters. The group of MPs attribute this decision to price volatility and the supporters’ lack of confidence in investing in these projects.
However, the UK Financial Conduct Authority (FCA) has recently enforced rigorous regulations on marketing cryptocurrencies to the public. Among these rules is a prohibition on incentives based on referring friends.
In the sports industry, fan token incentives can be highly profitable. Recently, Crypto exchange Binance unveiled a program that enables holders to exchange their points for exclusive meet-and-greet opportunities with their beloved athletes.
Chillz (CHZ) token is one of the most frequently used tokens by sports clubs. This is the native crypto of the blockchain sports and entertainment platform Socios. CHZ allows fans to participate in the decision-making processes of their beloved sports brands.
At the time of publication, CHZ’s price is $0.056.
Meanwhile, BeInCrypto recently reported that last year, FC Porto fans were given the opportunity to chose the location of a meet and greet with their favorite players.
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