In an unexpected turn of events, Spanish football powerhouse FC Barcelona has taken a firm stance distancing itself from its recent cryptocurrency partnership amid a significant backlash from fans and the public. Following the announcement of a sponsorship deal with a lesser-known digital coin provider, Zero Knowledge Proof (ZKP), concerns were raised regarding the safety and credibility of the cryptocurrency being promoted, leading the club to clarify its position about the digital asset.
FC Barcelona felt the need to address mounting skepticism after ZKP revealed the launch of its cryptocurrency. Fans expressed fears that they could potentially be enticed to invest in this digital currency, which spurred the club to assert, “We have no connection whatsoever with the digital coin offered by our new partnership—ZKP.” This declaration was publicly stated in an official message on their website, where the club stressed that it would not be taking on any responsibilities regarding the cryptocurrency’s issuance or management.
Sponsorship arrangements around the world have seen sports clubs engage with a diverse range of partners, many in unconventional sectors, with some seemingly benign alliances like Arsenal’s collaboration with the fabric care brand Persil in 2023 and Manchester City’s association with Kellogg’s as a breakfast cereal partner. However, the sponsorship with ZKP has marked a different chapter in Barcelona’s marketing strategy. Established in mid-November, this partnership has raised eyebrows primarily because of the ambiguity surrounding ZKP itself; little information is available about the company, which has also engaged with other sports franchises, such as the Australian rugby league team, the Dolphins.
Critics have pointed out the risk factors involved with investing in an unknown cryptocurrency. Carol Alexander, a professor at the University of Sussex, highlighted the potential hazards for supporters who might feel inclined to support the project based on the credibility that comes from aligning with a high-profile brand like Barcelona. She urged fans to critically assess who controls the cryptocurrency they might wish to invest in, the legitimacy surrounding its documentation, and the potential recourse available should the investment fail. According to her, with ZKP, these answers remain elusive, putting naive investors at a disadvantage.
Another troubling aspect regarding ZKP is its lack of transparency. Despite being portrayed as an innovative technology solution, the firm has no identifiable headquarters or clear leadership, as mentioned in various reports. This has naturally led to heightened scrutiny and skepticism regarding its legitimacy. The Financial Times mentioned a previously listed office located in Samoa’s capital, Apia, but the present operational structure remains ambiguous.
In light of these developments, FC Barcelona is undergoing scrutiny not just for partnering with ZKP but also for the broader financial strategies the club has employed recently. Experts assert that the club is firmly in a crisis with its finances and has resorted to adopting aggressive measures to shore up revenues, with many believing that their strategy may be to secure funds first, then analyze the consequences later. Football finance whistleblower Kieran Maguire expressed that partnering with an established club grants legitimacy to cryptocurrency ventures, making Barcelona a target for such associations, especially as they seek to alleviate financial pressures.
Moreover, the sponsorship has attracted additional criticism due to ZKP’s alleged connections with controversial figures like Andrew Tate, which has raised even more eyebrows. This relationship, along with unanswered questions about the sponsorship’s execution, has left many supporters calling for clarifications from the club.
In conclusion, FC Barcelona’s decision to associated itself with ZKP and subsequently distance itself from the cryptocurrency underscores both the risks involved with cryptocurrency investments and the necessity for caution among fans who may be lured into potential financial traps under the guise of reputable partnerships. As the relationship unfolds, ongoing scrutiny will likely reveal more about the partnership and the operational effectiveness of both entities involved.
