The UK advertising regulator has warned Arsenal Football Club over a Facebook post and content promoting fan tokens on its website.
The UK’s ad watchdog warned Arsenal Football Club
The Advertising Standards Authority (ASA) banned the content because it exploited consumers’ inexperience with crypto assets. The posts also misled consumers because they did not clarify that fan tokens are a crypto asset that customers must buy with another cryptocurrency, the authority said. The soccer club responded to the accusation by arguing that fan tokens are not promoted as financial products or investment instruments and that it does not promote trading of fan tokens.
Arsenal also argued that the promotion of the tokens was aimed at raising awareness of the opportunity to interact with the club, such as the right to vote on official club decisions. Despite this, the ASA ruled that the advert could no longer appear in its current form, and the club was also warned not to trivialize investments in crypto-assets.
Arsenal partnered with Socios to create fan token
Arsenal had partnered with Socios, which uses blockchain technology to provide fan tokens, collectibles, and other digital assets to sports organizations. The club’s fan token, $AFC, can only be purchased through the Socios app using the cryptocurrency Chiliz ($CHZ), which Socios also invented. The club felt that Socios is well known in the football community as a cryptocurrency platform, as it sponsors and works with several European soccer clubs.
The recent action against fan token advertising in the UK is part of a broader crackdown. In early December, the ASA published a volley of decisions against cryptocurrency advertising on London’s transport network, calling cryptocurrencies a “red alert priority.”