Iqoniq’s liquidation that left several sporting organizations potentially out of pocket has fueled calls for greater regulation on cryptocurrency-related platforms.
The Monaco-headquartered fan engagement platform had partnerships with some rights holders in soccer, including LaLiga, Real Sociedad, Crystal Palace, and Marseille.
Iconiq owes Real Sociedad US$916,000 for their primary shirt sponsorship and Crystal Palace has started legal action over missed sleeve deal payments.
Kazim Atilla, the CEO of Iqoniq, said the pandemic severely affected them financially, but will still be operating and would move to another country.
He also swore that Iqoniq’s almost valueless cryptocurrency tokens bought by fans would bounce back.
Iqoniq also has deals with the McLaren Formula One team, EuroLeague Basketball, the European Handball Federation, and Essex County Cricket Club.
At least half of English soccer’s Premier League clubs have deals with a company that promotes cryptocurrencies or tokens
But the Premier League has no current regulations for such partnerships.
Chiliz-owned Socios.com, an official partner to over 100 sporting organizations, including English soccer side Arsenal, welcomed Arsenal’s call for an independent review.
Socios.com noted that there should be clarity in such a fast-moving area to ensure all companies can adhere to the latest guidelines.