Ukrainian football club Dynamo Kyiv is ready to launch its own cryptocurrency to increase revenue and attract more fans, according to U.S. blockchain company Moonwalk that is helping Dynamo with the project.
The club will give fans digital money — the so-called “tokens” — as a reward. To earn tokens, fans can play games where they have to predict the outcome of a given event. Another way to get digital money is to comment, like and share Dynamo’s posts on social media websites like Facebook or Instagram, Moonwalk said.
Dynamo Kyiv fans outside the U.S. could start using digital money in early 2021, according to the company.
Fans can use their digital wallets and spend tokens to buy T-shirts, cups, backpacks, football uniforms and other goods at Dynamo Kyiv’s online store. Fans that own tokens can even join events that are closed to the public but Dynamo didn’t specify exactly which.
Sponsors and partners of the club, including shoe company New Balance, local water company Morshynska and car dealer Winner, can use digital money for advertising, according to Moonwalk.
The company said that it can analyze every transaction to learn more about the owners of the tokens — what they buy and when. With these analytics, Dynamo and sponsors can sell and promote their goods more effectively.
“We’re thrilled at the opportunity to offer our fans these tremendous benefits,” said Ihor Surkis, the owner of the club.
By investing digital money in Dynamo, fans will also “help to shape the future” of their favorite team, according to Greg Consiglio, the co-founder of Moonwalk.
“Dynamo Kyiv has proven to be a leader in reimagining how technology can enhance their fan community and we’re excited to embark on this journey with them,” Consiglio said.
The idea of using cryptocurrency in sports is not new. In February, Spanish football club Barcelona launched its own tokens that fans can win or buy for nearly $3 each. Italian Juventus and French Paris Saint-Germain football clubs have their own tokens too.
By offering cryptocurrency to their fans, clubs want to increase their revenue during the pandemic when stadiums are empty and many matches have been canceled.
According to a report by the European Club Association, European football clubs can lose 4 billion euros because of the pandemic.
For football businesses, fans are an important source of profit. More fans attract more sponsors and buy more products and services when they visit the game. With digital tokens, they can spend this money by watching games online.
In Ukraine, there are no laws that define cryptocurrencies. Ukraine doesn’t recognize them as securities or property, nor as any other valid payment tool.
However, the country has become the world leader in the number of people who use digital money, according to a report published on Sept. 1 by Chainalysis, a cryptocurrency analyst. Anyone with a valid email or phone number can buy virtual money.
