Brazilian club creates NFT Token tied to players - My review
Today I was logging into my digital account application when an advertisement appeared about a currency belonging to a traditional Brazilian football team. Cruzeiro Esporte Clube.
I then read the fundamentals of the asset to see if it would be interesting to put some money or not, and in my view I didn't think it would be feasible to invest any penny.
Now I'll bring you my review with links so you can if you want to do yours too.
Current moment of the club
Cruzeiro is one of the 12 great soccer teams in Brazil and has just over 7 million fans. In this last decade he won some relevant titles, being 2 National Championships of running points (Brazilian Serie A), and 2 National Championships of knockout (Brazil Cup).
However, due to bad administrations and an aging squad, in 2019 he was relegated to the second division of the national championship (Brazilian Serie B).
In his first months in the lower division he started the competition with a negative 6 points due to a FIFA punishment for not paying debts with other clubs. With debts close to 1 billion (1,000,000.000 BRL) he was unable to strengthen himself and did not gain access to Serie A. Not even coach Luiz Felipe Scolari (last Brazilian coach to win a World Cup) was able to make the team play improve on the field.
As of today's date, two games of Serie B 2021 have already been played, and Cruzeiro lost both. To make matters worse, there are 2 other teams from the Serie A tradition that were relegated in 2020 (Vasco da Gama and Botafogo), meaning the competition to move up is more difficult.
This is the current scenario of Cruzeiro, now let's talk about the Token they are launching.
A total of 792,000 tokens will be issued, 316,800 of which will be offered so they can be purchased, and the rest will stay with the Cruzeiro. That is, 40% with users and 60% with the club.
In his WhitePaper explains that these 40% will be sold in 4 stages, 10% being sold per stage.
The unit value of the Token is 25 BRL, where if you buy in the first step you will pay 17.50 BRL in the unit, in the second 18.75 BRL, in the third 20 BRL, in the fourth 21.25 BRL. Those that are not purchased will be placed on a platform at full price (25 BRL).
The token will be through the binance network and you can track it through this address: https://bscscan.com/token/0x56a147ea7eba502380ecedda905753aa041667eb
How much will the return be?
Football clubs have the Solidarity Mechanism, where they receive up to 5% of the total value of each international transfer of an athlete up to 23 years of age.
The 5% is divided as follows:
- 12th to 15th anniversary season: club takes 0.25% of the total compensation for each year.
- Season 16th to 23rd anniversary: club takes 0.5% of the total compensation for each year.
The buyer acquires the amount of tokens he wants, and when a player is sold and the club receives that amount from the solidarity mechanism it will be divided among the holders. 60% for the club, as mentioned above, and 40% split between token holders.
The Solidarity Mechanism only takes effect from the second transfer of players and is not attributed to cases where the forming club itself is selling a player. Therefore, the first time an athlete is sold to another club does not fall under the solidarity mechanism.
In other words, when a player is sold from Cruzeiro to another club, it does not fall under the Mechanism, but when that club sells to a third party, it does.
Remembering that the player must have been from the club between the ages mentioned above.
The token has a term of 6 years, that is, if the club does not make any transfers in that time, you do not receive anything and you lost everything you invested (impossible to happen because Brazil is a country exported by athletes, as it is one of its main sources of income to survive)
A financial company called Pluri made a report in which it estimates that in these 6 years Cruzeiro will raise around BRL 19,800,000 (19 million BRL), that is, the 40% that will go to investors will be BRL 7,920,000 (7 million BRL).
7,920,000 BRL divided by 316,800 holders gives a value of 25 BRL, which is the unit value that will be offered for sale for tokens that are not purchased in the 4 pre-sale stages.
Holders | Club | Traded Athletes
My conclusion
If the club wants to enter the world of cryptocurrencies strong, it will need more than the profit they expect, after all there are tokens that yield much more in a period of 6 years, including the Hive and several of its tribes.
Lack of credibility is huge on the part of fans with the club's board. The ex-presidents looted the coffers until they could no longer, several videos have already been released on the internet of fans harassing the former directors of the club for lack of transparency in the accounts.
I don't put my money into a company that lacks credibility.
Even though it is on BscScan, the token so far is not expected to be listed in binance, and there is only pre-sale on Liqi and later on the BitPreço exchange. One less point in view of the difficulty of obtaining foreign investment.
There is no option to buy in pre-sale using BTC and not even BNB, which shows the inexperience of those behind the project.
Inexperience allied with soccer directors (who in Brazil has a reputation as bad as Brazilian politicians), again makes me not feel that it is a safe and prosperous place for me to put my money.
Remembering that this is just my opinion, and the links are there for you to check and draw your conclusions.
