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Football is Embracing NFTs | WIRED UK

by Michael Stark

The Dangers of Soccer NFTs: Misguided Investments and Unrealistic Expectations

Huge fluctuations and a lack of education

Fan tokens have recently become a major trend in the sports world, particularly in soccer. However, their value has been pegged to Bitcoin, resulting in wild fluctuations. As clubs have raced to cash in on this trend, they have not done a good job of educating their fans about the risks involved. In fact, the UK’s Advertising Standards Authority censured Arsenal for trivializing investment in crypto-assets and taking advantage of consumers’ inexperience or credulity with their fan token, which has plummeted more than 80 percent in value since launch.

A Shift in focus to profile picture projects

The success of “profile picture projects” like the Bored Ape Yacht Club has marked a new era in the NFT market. This shift has impacted sports-focused NFT agencies like Capital Block, whose CEO, Tim Mangnall, notes that the trend started to escalate last year. However, as unrealistic growth in the market led to budget cuts and layoffs, many NFT projects within the soccer world are now struggling to stay afloat.

From tangible to vaporware

Soccer-based NFT projects initially appeared to offer tangible benefits such as meet-and-greets with players, match tickets, and access to exclusive content. However, as the market boomed, it became flooded with projects offering nothing but vaporware. Instead of buying for the love of the game, many individuals have shifted their focus solely to the speculative price of the tokens, which has led to a severe misrepresentation of the true value of NFTs in the market.

The problem with the industry’s misunderstanding

When discussing NFTs with European clubs, Tim Mangnall has noticed a troubling trend. Clubs are primarily focused on making millions overnight rather than truly understanding the potential value of NFTs. This widespread miseducation within the industry has led to a misunderstanding of the true purpose and potential of NFTs.

A misunderstanding of NFTs as a technology

Ultimately, NFTs and the blockchain should be viewed as infrastructure, not investments. However, many individuals have misconstrued NFTs as a speculative market rather than as a technological advancement. This misunderstanding has attracted many who are not thinking long-term and has had negative consequences for the fans and the industry as a whole.

By shifting the focus away from the speculative nature of NFTs and instead emphasizing their potential as a technological advancement, the soccer world may be able to redirect its course and harness the true benefits of NFTs for its fans.

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