Crypto tokens rendered worthless by thousands of sports fans

© REUTERS / TOBY MELVILLE

Iqoniq, one of the largest fan engagement platforms in the sports world, is going into liquidation. With the bankruptcy of the Monaco-based company, millions of tokens of the in-house cryptocurrency issued by the platform will also become worthless. Thousands of fans are affected reports the British Times.

Such fan tokens are now widespread. Fans can buy and trade them and thus also get a say or favors from clubs and sports teams.

Numerous clubs and teams are also affected

Iqoniq has had numerous partnerships with sports clubs and organizations including the Spanish Football League The League, big European football clubs and that McLaren-Formula 1 team. Iqoniq owes money to many of them. The Spanish Club Real society calls for about more than 800.000 Euro from the platform. Other clubs, such as Crystal Palace from London, have already terminated their partnerships after promised payments failed to materialize.

The pandemic has hit Iqoniq badly and led to financial problems, says the platform’s managing director, Kazim Atilla, quoted by the Times. We now want to try to rebuild the business.

When advertising cryptocurrencies, the risks are often downplayed, the fan association criticized Football Supporter’s Association (FSA). She called for stricter regulation of platforms selling fan tokens.

You can read more news about Bitcoin and other cryptocurrencies on our crypto channel futurezone.at/krypto.

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