Over the last few years, we’ve seen several football clubs get involved in NFTs. Usually, this involves them releasing collections for their fans ahead of a new season or for some celebratory reason. But Arsenal, one of the biggest football clubs in the world, has found itself in hot water with the Advertising Standards Authority (ASA) in the U.K.
What Went Wrong?
The error on the club’s part was the promotion of their new program, the $AFC fan tokens. According to promotional emails, the NFTs were a gift to fans that would offer them voting rights in certain club decisions and entry to in-person events.
The problem with these promotions, the ASA says, is that they did not disclose the adequate risks of investing in any crypto assets like NFTs. As they put it, the club should have specified that crypto assets are unregulated and often volatile and not doing so “trivialised investment in cryptoassets by omitting appropriate and prominent risk warnings”.
This is not the first time that the two have butted heads over the club’s promotion of digital assets. In the past, the ASA had several social media posts from the club banned after they failed to disclose that the NFTs being promoted had to be bought with another cryptocurrency.
These days, as NFTs become more popular, those who promote them will be under more scrutiny. This means any instance of insufficient disclosure will likely be flagged by bodies like the ASA, even if it is from the world’s biggest football club.
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Tokoni Uti has written extensively on blockchain and cryptocurrency for years. Her work has appeared on sites like BTCmanager and Blockchain Reporter. She has a degree in Corporate Communications.