Kieran Maguire has warned of the dangers associated with NFTs after Liverpool Football Club announced plans to sell their own NFTs.
The Merseysiders have attached benefits to their collection, with one normal token set to set fans back roughly £57.
“Liverpool and Nike will both see the financial benefits of doing something like this. Both parties can make money out of it,” the University of Liverpool lecturer told Football Insider.
“But you have to ask, if Nike, Liverpool and the NFT firm itself are making money out of this, somebody’s going to have to be losing money.
“There’s no doubt these things can be lucrative but certainly not lucrative for everyone associated with them. That is the problem.”
The initiative will reportedly make the club in the region of £8.5m, however, the critique associated with NFTs and, in particular, the environmentally unfriendly blockchains of which they are a part has led many to question to what extent such a move resonates with the values of the side.
Whilst we can appreciate the need to expand our potential revenue streams in a bid to keep up with the financial juggernauts of Europe, it seems that, in short, the latest plans are far from being a neat fit.
Environmental impact aside (as if that wasn’t reason enough), NFTs have been judged by some commentators to be financially exploitative, with the art pieces in question subject to the fluctuations of the market.
Contributing some of the funds gained to the LFC foundation is certainly a smart move, however, we’re unlikely to see fan disappointment erode anytime soon.
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