The renowned Spanish football club, Barcelona, has informed its supporters that it has “no association whatsoever” with the cryptocurrency introduced by its recent crypto partner, due to backlash surrounding the agreement.
Teams frequently seek sponsorships from unconventional sectors to generate additional revenue. For instance, Arsenal partnered with Persil for fabric care in 2023, while Kellogg’s joined Manchester City as their breakfast cereal sponsor within the same year.
However, there is limited information available about Zero Knowledge Proof (ZKP), which entered into a three-year sponsorship contract with Barcelona in mid-November.
Following this, ZKP unveiled a cryptocurrency, raising alarms that Barcelona’s fans might be misled into investing in it, prompting the club to clarify its stance.
“The club holds no responsibility for or involvement in the issuance or management of this token, nor does it utilize the related technology,” stated the club on its official platform.
Information regarding ZKP is scarce; the organization also secured a comparable sponsorship with the Australian rugby league team, the Dolphins, in early November.
According to their website, ZKP is founded and developed by “a pseudonymous group” operating out of “various jurisdictions.” This suggests that the firm is not disclosing the identities or locations of its creators.
Expert Insights on Cryptocurrency Sponsorships
Professor Carol Alexander from the University of Sussex mentioned that the Barcelona brand significantly elevates the visibility of cryptocurrency companies like ZKP, but there is a “considerable risk for fans who invest in the tokens.”
“Sponsorship exudes an air of credibility, even when the underlying venture remains unclear,” she noted, warning fans that they should be “extremely cautious.”
She advised that before purchasing any crypto assets, supporters should inquire about who governs them, where pertinent documentation is located, and what remedies exist if the investment fails.
“With ZKP, none of these details are evident,” she added.
Transparency Concerns
Details about ZKP are hard to come by, with the company even asserting that it lacks a defined headquarters.
However, reports indicated that a previous version of the company’s terms included an office based in Apia, the capital of Samoa.
The name ZKP also refers to a technology designed to enhance blockchain privacy, which is integral to cryptocurrency operations.
This partnership with Barcelona arrives as the club struggles to bolster its finances and manage its debt effectively.
“Barcelona’s financial situation has been dire recently, prompting the club to adopt a score of ‘secure funds first, ask questions later’ approach,” stated Kieran Maguire, an expert in football finance.
He elaborated that cryptocurrency products seek validation and normalization through engagement from those who speculate on their offerings, and collaborating with a prestigious club like Barcelona aids in achieving those objectives.
Additionally, former Barcelona youth player Xavier Vilajoana, who is reportedly campaigning for the presidency, urged the club to clarify the circumstances surrounding the partnership in a post on social media.
He also questioned the club regarding ZKP’s affiliation with Andrew Tate, a self-proclaimed misogynist, who is among the three accounts ZKP follows on social media.
The club has been approached for a response on this matter.
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