FC Barcelona criticized over its latest crypto deal - Coinfea

FC Barcelona has been heavily criticized over its latest crypto deal. According to reports, FC Barcelona is under fire after signing a crypto sponsorship with a barely-known Samoan-registered start-up called Zero-Knowledge Proof (ZKP).

Fans and experts are raising alarms, claiming that FC Barcelona is ignoring red flags just to scrape together more money. They also claimed that this deal might push supporters into buying risky digital assets without proper information. The three-year agreement, revealed this month, names ZKP as Barcelona’s official blockchain technology partner. The firm had no presence online until that moment, announcing the deal in its very first post on X.

FC Barcelona under criticism over its deal with ZKP

ZKP coined its name from a cryptography method that lets someone prove they own something or have funds, without revealing personal data. Aside from its name, most details about the company are hidden. According to its website, it supports transparency yet refuses to give details on how it raised the $100 million in question.

In addition, the legal terms of the company point to Samoan jurisdiction, far from any major financial hub. “Everyone asks, ‘Who’s behind this?’” the site says. “As if knowing the names would make the code stronger. It won’t.” The company claims to be made up of engineers, cryptographers, “system killers,” and former founders, noting that they are not “playing the PR game,” as they put it.

Meanwhile, ZKP held its first token auction last Thursday, offering up 200 million zero-knowledge proof coins to the public. However, Martin Calladine, who wrote a book about crypto scams in football, has discussed the partnership. Calladine noted that the partnership is “deeply concerning,” comparing it to previous shady sponsorships between clubs and sketchy crypto firms.

He also cautioned that the deal could lead fans into buying coins that “could easily end up being worthless.” And because of the deal, ZKP will now have access to advertise directly to Barcelona’s massive fanbase through the club’s digital channels. In addition, Xavier Vilajoana, a former Barcelona board member now running for president against Joan Laporta, asked what due diligence was done before signing this deal.

Vilajoana called the agreement “a sign of desperation.”“It is incredibly concerning that Barca’s leadership would choose to associate the club with a company whose background raises so many red flags,” he said. Barcelona also released a statement on Wednesday, trying to draw a line between itself and ZKP’s token sale. The club said it had “no connection whatsoever” to ZKP’s token, had “no responsibility” for the coin, and wasn’t using “the associated technology.”

This sponsorship comes while FC Barcelona is still paying the price for a failed transfer strategy between 2017 and 2019. That spree pushed the club deep into financial trouble. It’s since been punished for breaking La Liga’s spending limits and had to sell top players just to stay afloat. As of the latest report, the club holds €469 million in net debt, plus €900 million more tied to stadium renovations.

Barcelona has tried to survive by selling assets, like future TV rights. But delays to the stadium project have made it harder to bring in fast money. And the club’s track record with tech isn’t great either. It had to book a €141 million loss last year when investors failed to pay for a stake in Barca Vision, a digital unit that was supposed to lead its NFT and metaverse projects.