LFE’s Innovation on Cryptocurrency
The London Football Exchange is one of the newest crypto startups in the industry. It is a financial, technology, media and entertainment group that has focused on tokenised experiences for football fans.
The London Football Exchange has elevated the cryptocurrency industry by entering the soccer arena with a lot of supporters all over the world. They have launched a cryptocurrency to power a unique ecosystem that has sports, media, finance, entertainment, and many more.
The LFE created a new ‘fan-driven’ football community. This gave a lot of chances for fans to take part in a lot of club and fan experiences, such as matchday tickets, tours, player meets, exclusive merchandise, and more third-party offers.
The goal was to create the ‘ultimate sport community’ for fans, and that is what the LFE’s initiative says. The LFE integrated the use of the latest Blockchain technology. That new technology has the ability to be used in every case.
Two years ago, the LFE’s initiative said that it aimed to use Blockchain technology to help give loyal sports fans an enhanced experience and unique services. It also comes against the backdrop of a number of football clubs in the United Kingdom that has outsourced their matchday and season ticketing.
There are claims that the project will have less effect as said by the people working on the initiative. The LFE insisted that clubs involved in the project will pass directly into the fans of the beautiful sport, which has a global estimate of four billion fans.
The LFE has also revealed back then that they will use Ripple and Stellar networks to support their plans in the platforms, the LFE Market and the Exchange. Those two platforms will allow fans to purchase club merchandise without any hassle while accessing other exclusive packages with the use of the LFE token.
Charles Pittar, who is the London Football Exchange’s Corporate CEO, commented on the wake of the development.
‘Our vision is to allow football clubs to take advantage of the token funding economy for their financing needs by providing them with a tokenized financing infrastructure, which involves token design and issuance services’, said Pittar.
Fans and clubs will be able to come together with a common interest in the business of the sport.
Fans that have LFE tokens will also have the chance in joining club finance packages and could possibly be rewarded and get equity ownership at a friendly cost that is lower than any single club could do on its own.
Ben Leigh-Hunt, who is the LFE’s main board advisor, said, ‘We are announcing our first Global Loyal Fan Experience later this week (2018). Equity participants shall be announced in the coming weeks as currently we have to let the lawyers do their “lawyering” with various clubs’.
Pittar also explained that the LFE has a lot in store for their fans all over the world.
‘The LFE aims to become a “one-stop-shop” for clubs of all sizes to raise capital via equity sales and also offer LFE contributors a wealth of fan experiences and social interaction’, said Pittar.
There are a lot of clubs and fans that will benefit from the Equity Exchange aside from the Premier League, such as the largest clubs in La Liga in Spain, Ligue 1 in France, or even the Bundesliga in Germany.
‘We expect the clubs to benefit from this brand association and the fact that this global exposure will encourage fans from farther afield to build a portfolio of clubs in the same way we may buy stocks in London, New York and Tokyo’, stated Pittar.
'Clubs will be encouraged to offer some equity through the LFE and required to offer a minimum number of unique experiences or special offers so that the real fans can take part in their favourite clubs’, Pittar added.
The LFE tokens allow the global economy to run the loyal fan experiences with payments, rewards, and other related services. The token is not limited to the LFE Market, but it is also allowed in participating venues and the close business community.
The LFE Exchange is also a licenced multi-lateral trading facility that will support the final component, which is the global fan ownership. That allows the smooth process of buying, selling, or trading the LFE for their chosen club.
The LFE was advised by the leading law firm CMS prior to their launch.
‘As a firm, CMS has a particular focus on fintech and it’s very exciting to be advising the LFE on establishing a business that is aiming to have an impact on the entire football industry using blockchain technology’, said Sam Robinson, a CMS partner. Gary Wright, CEO and founder of the BISS Research, said that there is some mileage in the initiative, but implementing the Exchange and Market would be both problematic.
‘Even if it did it would spawn any number from its success and create confusion for its proposed customers - the football fans’, Wright explained. ‘I doubt also that football clubs and the associations they are members of would tolerate potential revenues flying out their window’.
On the other hand, ITI Group non-executive chairman John Barker had a positive note on both the Exchange and Market.
‘I see Blockchain and The London Football Exchange looking to launch its own cryptocurrency as forward-thinking’, said Barker. ‘There are billions of football fans and they are a young demographic and keen to invest in their favourite players’.
Adding the Blockchain technology is a whole lot important to the LFE, simply because it brings security, transparency, and a lower cost in operating the system.
‘By reducing the third-party payment processing costs, fraud and risk, the savings can directly go back into the ecosystem for fans, businesses and other programs such as youth development’, Pittar said of the Blockchain’s importance.
Words: Paul Daniel Flores