Arsenal Football Club Signs a Cryptocurrency Sponsorship Deal With CashBet
The world of cryptocurrencies is now not just limited to its use across the financial sector or for specific transaction purposes. This time it’s the popular football club Arsenal who has recently inked a new deal with gaming company CashBet that is planning to launch its own CashBet Coin.
CashBet is a California-based online gaming business that claims to be the ‘only mobile-first platform for real-money, social, and skill-based interactive gaming’. In addition to this, the platform also offers other features like sports and casino betting and already features Arsenal footballers on its website.
With this deal, Arsenal’s Premier League home games will be advertising CashBet coin. Arsenal's chief commercial officer Vinai Venkatesham said: "We are looking forward to working with CashBet Coin as they launch their new crypto-currency.”
This California-based gaming business is now planning to take a dip in the popular world of cryptocurrencies by launching its own ICO (Initial Coin Offering). The company aims to raise around $40 million by getting investors to buy CashBet coins that can be used to bet for other games on its platform.
Although CashBet is registered and regulated by the gaming commission in the UK, the ICO market operates in a completely decentralized manner and has its own associated risks. As per the latest report released by Ernst and Young, several companies last year have been found cheating investors in ICOs that have turned to be outright scams. EY reports that last year, around $400 million worth funds have been lost in such scamming activities.
A BBC technology correspondent asked Arsenal about why it endorsing such a high-volatile business and whether it is encouraging fans to bet on CashBet coins, to which, a club spokesperson said: "Not at all. The partnership aims to promote CashBet Coin ahead of their Initial Coin Offer on 24 January. It does not exist to encourage fans to bet with CashBet Coin.”
ICOs although has turned out to be a popular way to raise money using cryptocurrencies, however, investors need to understand that such fundraising method operates in a completely decentralized market and investors don’t get any kind of stake in the business neither do they get dividends. The only way to profit is by the rise in the price of the digital coin.
The Financial Conduct Authority has warned several times regarding the associated risks and speculative behavior of ICO investments. David Gerard who has authored the book "Attack of the 50 Foot Blockchain" says that Arsenal needs to remain cautious by collaborating in the risky business. He said: "Crypto-currencies are less regulated than regular betting shops and it's a lot harder to get actual pounds back out again.”