UK Advertising Standards Authority ordered Arsenal FC will remove advertisements promoting their Socios Fan Token. The ASA claimed that the advertisements “trivialized investment in crypto assets … took advantage of the inexperience or gullibility of consumers” and “were misleading because they did not illustrate the risk of the investment.” .
Arsenal partnered with Malta-based Socios in July to create their $ AFC Fan Token, which fans buy by first buying the cryptocurrency Chiliz, which also owns Socios. Token holders can participate in fan engagement programs, such as voting for the song Arsenal plays in their stadium following a win.
The $ AFC token was promoted on the club’s website and Facebook page. Arsenal’s fan token ads did not mention the potential capital gains tax related to crypto trading, a key factor in the ASA’s decision.
“We recognized that the advertisements did not promote Fan Tokens as an investment or financial product,” the ASA wrote. “However, the product was a crypto-asset regardless of how it was promoted, and the advertisements did not contain any information indicating that capital gains tax could be payable on profits from a business. investment in crypto-assets. “
More than 100 sports teams got together with Socios, including five other Premier League clubs and other football giants like FC Barcelona, Paris Saint-Germain and Juventus. The ASA’s decision only applies to Arsenal as the regulator has received an individual complaint about the club.
Arsenal will conduct an independent review of the decision, and a spokesperson for Socios told SportTechie that Arsenal will appeal the original complaint.
“We welcome Arsenal’s call for an independent review. This is a rapidly changing area and clarity is needed to ensure that all companies can adhere to the latest guidelines, ”Socios said in a statement.
Socios has signed agreements with 12 NHL clubs earlier this month, as well as with the New England Patriots last month, the UFC last May and the New York Knicks and New York Rangers Wednesday. Alex Dreyfus, CEO of Socios et Chiliz, said wednesday that Socios plans to launch its US application in the first half of 2022.