FC Barcelona has recently distanced itself from its sponsorship deal with Zero Knowledge Proof (ZKP), a cryptocurrency firm, after backlash from fans and stakeholders. In mid-November that became a three-year sponsorship. This deal propelled ZKP’s token sale, which has since come under fire for its legality and potential impact on backers.
The partnership with ZKP seized the moment and announced it just ahead of the launch of a new cryptocurrency. Yet almost immediately, fans got concerned over how clear and safe investing in it was. As of today, Barcelona has chosen to formally pull out of the cryptocurrency project. They worry that advocates are being guided into dangerous financial waters. Unsurprisingly, ZKP does not have a fixed base of operations, which further obfuscates the activities in which it has been involved.
ZKP’s social media presence has made many people take pause. The firm currently follows only three accounts on X, one of those belonging to Andrew Tate, a self-styled misogynist. Xavier Vilajoana, a former Barcelona youth player and presidential candidate, has openly questioned the wisdom of the sponsorship deal due to ZKP’s association with Tate.
Kieran Maguire, a football finance expert, was quick to point out the negative impact of these partnerships. He noted that while ZKP may be an unknown entity, aligning with a prestigious club like Barcelona lends it an unwarranted credibility. “Barcelona’s finances in recent years have been perilous, so the club appears to have adopted a strategy of ‘bank the money first, ask questions later,’” Maguire stated. He elaborated by saying that crypto products try to gain legitimacy by aligning themselves with the most legitimate organizations.
It prompted Carol Alexander, an expert in financial risk, to register her alarm. She cautioned about the risks of industry-pushed proposals that could harm consumers pouring money into supporters’ ZKP crypto. She emphasized that there is a “substantial risk for supporters who buy the tokens,” warning that sponsorships can create an “aura of credibility” even when the projects themselves remain opaque.
“The damage from collapses like FTX, Terra and Celsius has already been done,” Alexander said. “Before buying any crypto asset they should ask who controls it, where the documentation is, and what recourse they have if it fails,” she advised. Sadly, when it comes to ZKP, “none of those answers are clear.”
The controversy surrounding ZKP’s sponsorship deal has prompted discussions about Barcelona’s commitment to responsible partnerships and the safeguarding of its fan base. As the football club navigates its financial challenges, it faces scrutiny over its choices and the potential consequences on its dedicated supporters.