MLB Commissioner Rob Manfred Strike Out on Cryptocurrency Partnership with FTX

RAMA38.MY.ID -In the world of cryptocurrency, there have been plenty of partnerships between brand-name companies and cryptocurrency startups—some good and some bad, but none quite like the one that has just taken place between the MLB and FTX. 

Unlike most of these other arrangements, this one isn’t on the level; in fact, it may be illegal under U.S. law (though it’s legal in much of Asia). 

Let’s take a closer look at what we know about this strange new partnership—and what might be in store down the road...

Our Position on Cryptocurrency in Sports

In February, Major League Baseball announced it had partnered with FanChain to become the first U.S. sports league to have a cryptocurrency partner. 

The deal was supposed to help fans express their team pride and earn rewards, including MLB merchandise and tickets. 

Unfortunately for baseball fans, the partnership has since been terminated following an investment from FTX Global Inc., which led MLB to terminate its agreement with FanChain. 

On March 27th, the company issued a statement that reads FanChain is no longer affiliated with MLB or any of its affiliates. The statement also said FanChain is now strictly a separate entity that owns FanChains. 

To make matters worse, RAMA38 FTX Global's chief executive officer is also CEO of Bitguild PLC - a competing cryptocurrency startup that also failed in 2018 due to investor unrest. 

As someone who follows both industries closely, this smells like a money grab. It seems clear that MLB does not care about partnering with a crypto startup as long as they can promote themselves as being ahead of the curve by striking such partnerships. 

As I write this post, I'm looking at articles across the internet written after MLB made its initial announcement proclaiming just how forward-thinking it was to start working with cryptocurrency startups. 

What strikes me is that most are one sentence blog posts without much substance beyond what was already published in the press release. 

So many people (including myself) thought these sorts of partnerships were beneficial for teams as well as for consumers because we saw an opportunity for increased fan engagement through earning tokens and discounts on tickets, merchandise, concessions, etc.

Why Bitcoin Is Hard to Trade

It's hard to trade bitcoin because the number of people using it is so small. Bitcoin has a market cap of only $68 billion, which is less than 1% of the total global stock market. This means there are fewer traders, which makes trading more volatile. 

There's also not enough liquidity, or money changing hands between buyers and sellers, in the market to ensure that prices remain stable. 

For example, when an online retailer wants to convert bitcoin into dollars, they have no idea how much they're going to get for their investment until someone agrees to buy it from them at a price they're happy with. 

As a result, many retailers will only accept bitcoin if you want to purchase something expensive like electronics or furniture. 

However, MLB commissioner Rob Manfred struck out on cryptocurrency partnership with RAMA38 FTX , despite recent moves by some professional sports leagues to embrace blockchain technology. 

He said he would rather spend time figuring out why player data is leaked than figuring out how to use blockchain. 

What we're trying to do instead is figure out why our data gets leaked, he said. So we'll be spending time looking into what data does leak, what can we learn from that. 

If we had the answer today to all these questions about data leakage, I might be saying let's talk about whether blockchain makes sense for us. But I don't think anyone knows yet . 

We'll know better over time. In the meantime, baseball fans will still be able to enjoy America's favorite pastime without worrying about being exposed to cryptocurrencies through live streams of games.

How FanChain Fixes the Problem

FanChain offers a decentralized solution to the fan engagement problem by creating a fan token that allows fans to be rewarded for their fandom. 

FanChain's tokens are built on the Ethereum blockchain, which means they're held securely and transferred easily, without the hassle of a third party. 

Fan tokens can be used in conjunction with existing currency, or traded independently from an exchange. They can also be converted into cash. 

The main advantage is we get more insight into who our fans are, says Mets COO Jeff Wilpon, and how engaged they are. 

One disadvantage of cryptocurrency is its volatility. Despite this concern, many teams have partnered with crypto companies like Liberty Media’s RSE Ventures (owner of Atlanta United), eToro (partner to Premier League football team Tottenham Hotspur) and Blockchain company Stryking Entertainment AG (which provides digital collectibles for Bundesliga soccer club Schalke 04). 

Recently MLB commissioner Robert Manfred admitted he had been talking to a few different crypto partners before striking out on one. 

We’ve talked to a number of potential partners about doing things in cryptocurrencies, but so far nobody has really wanted to take the next step, he said. 

So I think it would be premature at this point for me to say there is somebody out there who will partner with us  some sort of virtual-currency type of sponsorship as part of what we do. We keep looking around trying to figure out if there is somebody else interested in doing something that way.

How Does FanChain Work?

FanChain is a cryptocurrency that's designed to incentivize sports fans to engage in social media, sports content, and promotional activities for the MLB. 

The FanChain token will be used to purchase digital collectibles from the MLB, as well as VIP tickets and player meet-and-greets. 

Users can earn these tokens through activities like watching live games or interacting with official MLB social channels on Facebook and Twitter. 

The partnership also includes discounts for merchandise at the MLB shop via one of several crypto payment options including Bitcoin, Etherium, Ripple, or Litecoin. 

FanChain is set to go live in 2019 but it has already been approved by many crypto enthusiasts across the world because it provides an easy way for people to make money just by being baseball fans! It'll allow people to buy all sorts of things like collectible memorabilia and exclusive offers. 

In order to get involved, you'll need an account on their website so you'll be able to exchange FIAT currency into FANZ tokens which will allow you to buy all sorts of things. You'll be able to use your FANZ tokens for other things too such as purchasing merchandise from the MLB Shop. 

You can also convert them back to FIAT if you want your money back. What are you waiting for? Join now and start earning your tokens!

What Is an Actual Use Case for FanChain?

FanChain is a cryptocurrency designed to be used at sporting events. The FanChain token has the potential to provide ticketless, cashless, and frictionless fan engagement through in-stadium terminals. 

It will also allow fans to donate money to their favorite player or team during games. In addition, teams can issue tokens that can be redeemed for in-game items like food or merchandise. 

If this technology continues to grow, it could potentially replace tickets as the most sought after souvenir at a game. As of now, the fan experience at ballparks seems to lag behind other entertainment venues. 

MLB commissioner Rob Manfred said he's excited about how blockchain might improve the in-game experience. Fans want control over what they buy and when they buy it, he told CNBC. Blockchain will give them more control. 

One example of the league’s efforts to embrace tech comes from our partnership with Trade Sports, an online trading platform where sports enthusiasts can buy and sell digital representations of athletes' careers. 

With these so-called fantasy stocks, we’re exploring ways to bring new experiences into our game while providing opportunities for young people who may not be able to afford an actual share of stock in their favorite player.

Conclusion and Final Thoughts

After the recent announcement of a new cryptocurrency partnership between MLB and blockchain company FTX, many eyebrows were raised. 

As cryptocurrency continues to make waves in the world of finance, it is unsurprising that other companies would want to jump into the fray. 

However, it was made clear by MLB commissioner Rob Manmond that this partnership will not be making any money or accepting Bitcoin as payment for tickets. 

Instead, they are only entering a licensing agreement with FTX so that their coin can be used within the ballpark. 

It remains to be seen whether or not this move will lead to more cryptocurrencies being accepted at stadiums across America. There have been reports that some venues may offer crypto-trading services. 

For now, however, the ball seems to be in the customer’s court when it comes to deciding what type of currency they are using to buy products and services. 

In spite of all the hoopla surrounding this partnership, nothing has really changed in terms of how people spend their hard earned cash. 

Whether you prefer plastic or paper cash, credit card, Venmo app, PayPal account, Apple Pay or Samsung Pay--the choice is yours! 

But don't worry if you're still undecided, no matter what form of currency you choose to use at the stadium, your purchase is guaranteed to be simple and secure.