On February 13t FC Barcelona announced they were going to launch a new cryptocurrency. Under their agreement with Chiliz that, according to its website:
“gives sports and esports fans the ability to crowd-manage their favorite teams, games, leagues, and events”.
For example, it has been announced that there will be 40 million units of FC Barcelona’s crypto at 2.00 EUR price in the initial coin offering. Each unit will have an equal vote in some surveys to allow users to participate in some decision making. For instance, they could decide which song the stadium will play in case there is a goal.
It is also expected that the crypto will add some kind of gamification and extra features to be more involved with the club.
Sound good?
It sure does.
However, be careful if you face such a project as an investment. Here are the things we do not like:
First of all, we strongly believe than investors and heart should be far from each other. When facing an investment, the investor should analyse its potential and future outcomes in a rational way. We do not need to explain how football teams mean just the opposite to reasoned and objective decisions for their supporters.
The currency will be traded in the Chiliz market, which is a very clever movement for both the sports club and the market itself. The market achieves great media attention, like this article for example, and attracts new clients to its base. The sports club is able to sell some intangible assets and get an extra amount of money.
If you face the purchase of the crypto as a hobby or a game, we do not have anything to say against it. One can spend their money as they please; and if you have money, it should be for something you enjoy .
On the other hand, as an investment, the cryptos lacks transparency; and as we said, we feel that the relationship with football passion is not ideal for good decision making.
Besides, Chiliz does not have any license yet, though they say that they are working to get one from Malta’s Financial Authority.
As things are right now, there is not much legal background to go on if the crypto does not behave as it should. You would be investing in something with similar behaviour to a stock or a fiat currency but without its legal frameworks, which means a higher risk of illicit behaviour from the powerful hands and more chances of market manipulation.
The crypto may be a success and bring awesome benefits to its investors in the future, but so does the lottery; and with it, at least you know all the rules.
As always, the final decision is yours!
