- Liverpool Football Club launched a number of NFTs two months ago and 90% remain unsold.
- Footballers Paul Pogba and John Terry also backed projects that failed amid the cryptocurrency sale.
- Fan groups have criticized teams and players for promoting unregulated assets.
In March, the UEFA Champions League finalists Liverpool launched the ‘LFC Champions Club’ – a set of 24 irreplaceable tokens depicting high-profile players.
90% remain unsold.
NFT is a unique blockchain identifier that proves ownership of a digital artwork. The NFT market grew to $41 billion in the past year, with traditional auction houses such as Christie’s and Sotheby’s entering the sector.
But while cryptocurrencies have seen impressive gains over the past year, they have fallen dramatically in 2022. Bitcoin and Ethereum prices are down 38% and 52%, respectively, since the beginning of the year.
Most NFTs run on the Ethereum blockchain, which means they are priced in ether, not dollars. Crypto struggles have gained a significant amount of value from the market as a whole, which makes it difficult to sell to football fans.
“When a big club like Liverpool can’t sell their NFTs, it shows the general skepticism of the fans,” Kieran Maguire, an academic who specializes in football team accounting, said in a recent interview with Insider. “[Soccer] They are used to legalize NFTs and market them as an investable asset and this is a cause for concern.”
Liverpool was the first football club to launch its NFT range – following in the footsteps of major brands such as Adidas, Nike and Playboy. They have partnered with Sotheby’s to create the “Heroes Club”.
But the initiative was met with fierce condemnation by Liverpool fans, with many arguing that selling NFTs was exploitative.
Liverpool’s failure to transfer 90% of their NFTs could deter other clubs from releasing their own kits. But many prominent players have already spoken out in favor of digital art, with similarly disastrous results.
In November, Manchester United and France midfielder Paul Pogba promoted the CryptoDragons group to 10 million followers on Twitter, and said he had bought his first-ever NFT.an egg with a dragon“.
According to Pogba, one of the digital assets was sold for 35 ETH, or $162,000. Six months later, CryptoDragons is selling offshore for just 0.018 ETH or $32.
Pogba isn’t the only Premier League player to promote a group NFT that later failed.
Former Chelsea captain John Terry’s NFT set ‘Ape Kids Football Club’ is down 90% in one month, and single ‘Ape Kids’ can now be purchased for $0.019 or $34 at Open Sea.
Michael Owen, who has played for Liverpool, Real Madrid and Manchester United and is now a prominent commentator on British television, launched his own group from NFT in May and claimed it “NFTs will be the first that cannot lose their original value“.
Owens NFTs have a reserve price that is encrypted on the blockchain, which means that they cannot be sold for less than the price at which they were purchased. This does not prevent NFTs from falling to $0 but will discourage investors from selling at low levels to cut their losses.
Pogba, Terry and Owen are not financial advisors but they and Liverpool FC have upgraded their NFTs as if they were solid investable assets.
“This is work [soccer] player to play [soccer]Simon Chadwick, a professor at France’s Emilion Business School, told Insider. “We should not expect them to deal with the regulation of the metaverse or a possible collapse of cryptocurrencies.”
He added, “But some players may be quick to sign such deals and not be sufficiently suspicious of the issues surrounding non-television associations.” “Everyone involved needs to improve their games.”
Continue reading: These 5 Premier League English Football Teams Are Releasing Tokens for their Blockchain Fans – Here’s How They Plan to Capitalize on the $2.5 Billion NFT Market to Build a Global Fanbase
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