On Friday, FC Barcelona, the world’s largest soccer club by revenues, canceled a non-fungible token (NFT) project with startup Ownix in a terse statement. Doing deals with startups with no track record has significant risks, as highlighted by this incident. The challenge is that many startups in the space don’t have a history. In this case, a ‘consultant’ to the NFT platform and likely token holder has been arrested.
“In light of information received today that goes against the Club’s values, FC Barcelona hereby communicate the cancellation of the contract to create and market NFT digital assets with Ownix with immediate effect,” read the club’s statement.
The issue relates to the recent arrest in Israel of Moshe Hogeg and seven others based on allegations that they defrauded cryptocurrency investors, amongst other claims. Hogeg was a co-founder of Sirin Labs, a high profile ICO that raised $158 million in 2017. But it wasn’t the only ICO in which he participated.
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