The first complaint came with the fan token AFC, which was released on Facebook and Arsenal’s websites in August 2021. The Advertising Standards Authority said in its review after the decision that Arsenal discredited crypto investment and took advantage of users’ inexperience.
The review ruled in favor of Arsenal regarding online advertisements for fan tokens after an objection from the UK Advertising Standards Authority (ASA). In a Wednesday statement, the watchdog concluded that Arsenal discredited investments in cryptoassets and lured its investors into high-risk investment without mentioning fan token risks through advertisements.
UK Advertising Standards Authority (ASA) Warns
Fan token holders are given the right to vote on club decisions in certain circumstances, and the token can be purchased through Chiliz’s app Socios. Arsenal crypto-related ads and ads from several companies including Kraken and Coinbase caught the attention of ASA. The ASA prompted Arsenal to publish guidance on crypto ads in March recommending companies clarify certain points about crypto assets, including that they are unregulated.
Arsenal told The Telegraph they were disappointed with the result. An Arsenal spokesperson said:
We have made it clear from the beginning that we take our marketing responsibilities very seriously to our fans. In this case, we have carefully reviewed communications regarding our promotions and briefed our fans on the financial risks.
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