Iqoniq Crypto Company, one of the largest cryptocurrency-based fan engagement platforms, has gone into liquidation, leaving a majority of sporting organizations and sports supporters in big losses, according to The Times.
The Monaco-headquartered company is a social media engagement platform where fans of the sports it sponsored connect. It also has its own cryptocurrency tokens, IQONIQ FanEcoSystem (IQQ).
The crypto platform has partnered with some leading European football clubs like La Liga in Spain, the McLaren Formula One team, Real Sociedad, Crystal Palace, and Marseille. The company has also signed partnership deals with EuroLeague Basketball, the European Handball Federation (EHF), and Essex County Cricket Club.
To help the platform grow and expand, Iqoniq secured a €100 million ($112 million) investment from Lux Media Investments, a Luxembourg-based firm, in July 2020. However, due to the COVID-19 pandemic, according to its chief executive Kazim Atilla, the platform has suffered financially leading it to liquidation and debt.
The reason the platform gave for its liquidation is quite different from the information, The Times gathered. The Times revealed that the liquidation was a result of Iqoniq not paying sports partners on time.
Reports revealed that Iqoniq is owing La Liga’s Real Sociedad about €820,000 ($916,000) for their primary shirt sponsorship while the Premier League’s Crystal Palace is taking legal action over a shirt sleeve sponsorship deal that was reported as a missed payment.
While Atilla insists that the platform’s crypto tokens that have lost value will bounce back in value and that the company will change its base to another company, the incident has alerted authorities who are calling out for regulations to be placed on crypto-based engagement partnerships.
Chiliz-owned Socios.com, another fan engagement platform insistent on the regulation, reached out to the Premier League on a regulatory policy for all cryptocurrency-related partnerships with European football clubs.
The crypto platform, Socios.com, which has partnered with more than 100 sporting organizations, recently joined hands with the English soccer side, Arsenal Football Club, to launch the Arsenal Fan Token ($AFC) on its platform.
Source: https://coinfomania.com/fans-cry-out-as-crypto-platform-iqoniq-liquidates/#utm_source=rss&utm_medium=rss&utm_campaign=fans-cry-out-as-crypto-platform-iqoniq-liquidates