London's Arsenal Football Club, an English Premier League club, has stepped into the precarious market of cryptocurrency by lending its name to promote a new digital token sold by California based CashBet. CashBet announced on Wednesday the Premier League club has agreed to become its 'exclusive and official Blockchain partner'.
"This partnership has made Arsenal 'the first significant football team in the world to officially partner with a cryptocurrency", CashBet said in a statement.
CashBet Inc. plans to organize a sale of CashBet Coins on Wednesday to raise $40 million to $70 million. Its webpage features the English Premier League team's crest and photos of players including striker Alexandre Lacazette, promoting the digital tokens. The club has described CashBet as its 'first cryptocurrency partner'.
Each coin, initially priced at 50 US cents are meant for use in CashBet's gaming sites and mobile apps. Company strategizes to focus on marketing, expansion to new regions and product development with debt restructuring taking about 15 percent of the money. A compiler of cryptocurrency market data, Coinist estimated that Initial Coin Offerings (ICOs) raised $3.8 billion globally in 2017.
CashBet is a software-selling company that helps gaming companies to accept bets using cryptocurrencies. Its coin named 'CashBet Coin' would be advertised at Arsenal's Emirates Stadium and CashBet is entitled to use Arsenal's brand to promote the new tokens.
The Football Association which is the governing body of football in UK, last year decided to cease all the sponsorship deals with betting companies after reviewing the relationship between the soccer and gambling industries.
But the surge in prices for cryptocurrencies attracted, millions of buyers across the globe. Regulators often call it speculative bubble citing the risks associated with the ICOS which may put the entire capital of the investor at risk.
But the craze of cryptocurrency is soaring, and its backers are confident of the technology underpinning virtual coins. They believe it has the potential to transform the way of handling money.