Clubs promoting NFTs pose 'risk' to fans, MPs warn

Sports clubs that issue cryptocurrency fan tokens risk damaging their reputations, a group of MPs has warned.

Some of them can be traded, like an NFT - but that means their value can vary widely too, with the potential to gain or lose a lot of money.NFTs enjoyed a period of considerable popularity - and soaring prices - during and after the pandemic, with people and businesses encouraged to create them, but MPs say their fluctuating prices are troubling.

It also voiced concerns over the rise of crypto assets in the arts, with Dame Caroline saying that "artists are at risk of seeing the fruits of their hard work pinched and promoted without permission".How do fan tokens work in sport? "Fan tokens offer new and complementary benefits to clubs' traditional fan engagement beyond the boundaries of geography and, unlike NFTs, are regulated by the FCA."

"A wave of optimism was created which underpinned and created speculative values for . Then when people actually worked out exactly what the benefits were, they were pretty insignificant, and people started to look for an exit route," Mr Maguire said.

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