Barcelona distances itself from sponsor’s cryptocurrency after backlash

The Spanish soccer large Barcelona has informed followers it has “no connection in any way” with the digital coin provided by its new crypto companion, following criticism over the deal.

Golf equipment typically choose up sponsors in uncommon areas to herald more money – with Arsenal bringing in Persil as its material care companion in 2023, and Kellogg’s turning into Manchester Metropolis’s breakfast cereal companion that very same 12 months.

However far much less is thought about Zero Data Proof (ZKP), which signed a three-year sponsorship deal in mid-November with Barcelona.

ZKP then introduced a cryptocurrency, prompting issues Barcelona followers might be led to put money into it – main the membership to distance itself from the coin.

“The membership has no accountability for, or involvement in, the issuance or administration of this token, nor does it use the related know-how,” the membership mentioned in an announcement on its web site.

Little is thought about ZKP, which additionally introduced the same sponsorship take care of Australian rugby league workforce Dolphins in early November.

On its web site, it says the undertaking has been based and developed by “a pseudonymous collective” primarily based throughout “a number of jurisdictions”.

In different phrases, the agency shouldn’t be revealing the names or areas of these behind it.

College of Sussex professor Carol Alexander mentioned the Barcelona model offers monumental visibility to crypto companies like ZKP – however there’s “substantial danger for supporters who purchase the tokens”.

“Sponsorship creates an aura of credibility, even when the underlying undertaking is opaque,” she informed the BBC – saying this meant followers and supporters needs to be “very cautious”.

“Earlier than shopping for any crypto asset they need to ask who controls it, the place the documentation is, and what recourse they’ve if it fails,” she mentioned.

“With ZKP, none of these solutions are clear.”

Particulars about ZKP are few and much between, with the agency even claiming it has no single headquarter.

However the Monetary Instances reported an earlier model of the corporate’s phrases listed an workplace situated in Apia, the capital of Samoa.

The ZKP identify can also be the time period used to explain a sort of know-how designed to reinforce the privateness of a blockchain – a digital report of transactions which underpins cryptocurrencies.

Its take care of Barcelona comes because the soccer membership is reportedly dealing with an uphill wrestle to boost income and relieve its debt.

“Barcelona’s funds in recent times have been perilous, so the membership seems to have adopted a method of ‘financial institution the cash first, ask questions later’,” mentioned soccer finance skilled and creator Kieran Maguire.

He informed the BBC “crypto merchandise search legitimacy and normalisation from those who speculate on their merchandise”.

To companion with a soccer membership, significantly one as well-known as Barcelona, “helps obtain these ambitions,” he mentioned.

And former Barcelona youth participant Xavier Vilajoana, who reportedly is bidding to be its subsequent president, known as on the membership to make clear how the deal had come about in a put up on X.

He additionally requested the membership about ZKP’s relationship with self-proclaimed misogynist Andrew Tate – one in all solely three X accounts the crypto agency follows on the platform.

The BBC has approached Barcelona for a response.