In a first of its kind, soccer juggernauts Arsenal have come to an agreement with gaming company CashBet to promote their native crypto currency. Cashbet will be launching its native token soon, and has agreed with the Premier League powerhouse to promote its coin through means of visual advertising.
To be more specific, we can see that the team will be using various marketing tools such as banners, advertisements all through the Etihad Stadium (during home games) to promote the upcoming coin.
According to information that is available online, we can see that CashBet is a California based “online gaming business” that was established back in 2012. In the past couple of years, the global economic climate has changed quit drastically, and thus to keep with the times, Cashbet will be entering the crypto market soon via the launch of its very own ICO.
Through the Initial Coin Offering, the company aims to raise a total of $40m, primarily by getting investors to buy CashBet Coins. These coins will be used to power the company’s blockchain platform, and will primarily allow for user participation within a wide variety of online games.
While many fans have backed this move, there are a few sceptics who say that this association can be damaging for the club and its overall reputation. However, when we got in touch with Vinai Venkatesham (Arsenal's chief commercial officer) he had the following words for us: “We are looking forward to working with CashBet Coin as they launch their new crypto-currency.”
When asked about the volatility of such coins, and whether promoting the use of such coins will be damaging for the national economy, Vinai said that “Not at all. The partnership aims only to promote CashBet Coin ahead of their Initial Coin Offer on 24 January, and not to encourage fans to bet with CashBet Coin.”
What's the Risk Involved?
As is clear for everyone to see, ICO’s have become the chosen means of raising funds for many companies these days. However, it should be understood that these programs are unregulated and participants receive no stake in the business itself.
The primary way to make money via ICO’s is if the value of the purchased tokens increase exponentially in the future. Additionally, it should also be noted that The Financial Conduct Authority has recently released a statement, wherein it called ICOs “high-risk, speculative investments”.
What Are Market Experts Saying?
According to David Gerard, who wrote the bestselling book “Attack of the 50 Foot Blockchain“, currencies such as CashBet coins have the danger of promoting a highly unstable form of gambling. He goes on to add; “Crypto-currencies are less regulated than regular betting shops and it's a lot harder to get actual pounds back out again,”
Any Word From Cashbet?
While people like Mr Gerard have raised concerns over this matter, when we got in touch with the folks over a CashBet, it was made clear to us that the company would be using its currency in a way that lay in full compliance with the existing rules set forth by the UK Gambling Commission and the Alderney Gambling Control Commission.
Lastly, representatives from CashBet also made it clear to us that all of the punters who bet via the use of CashBet coins would eventually be able to “convert their winnings into cash via third party exchanges”.