Yes, you read that correctly. A Brazilian soccer team will ICO with one overarching goal in mind.
The context for the ICO starts with the fact that the team in question, the Avaí Futebol Clube, is currently stuck in Series B in the Brazilian soccer league, which is akin to being in the league under the Premier League in England.
Because of this, overall, the club reportedly hopes to use an ICO to catapult it into the top league.
Assuming that this will happen for this reason alone can be said to be risky, at best. Just like in any other league, teams that want to be in Series A in Brazil get there based on their record and therefore, their wins.
Due to this fact, it is not off-base to question Avaí’s true motivation behind this move.
What may help to set the scene for answering this question is a quick overview of their other, equally important goals behind choosing to ICO. Above all, according to yesterday’s article by Coindesk on the subject, the club hopes to “build a digital ecosystem for its fans.” By this, it appears that they mean they will let their fans pay for anything related to the club in Cryptocurrency, especially due to the fact that the ICO includes releasing a proprietary Cryptocurrency, exclusive to the team.
Related to this, the team also aims to apparently streamline the logistics of how it operates because it will run on this previously mentioned Cryptocurrency. As to what exactly this entails, only time will tell. After the ICO, the precise operations or activities that Avaí hopes to change will become clearer.
In terms of their overall goals, however, the only other point that is mentioned as a sort of goal behind this ICO is for the team to be able to qualify for the Copa Libertadores, which is considered to basically be the most prestigious football tournament in South America, placing it on par with tournaments like the UEFA Champions League in Europe.
In attempting to analyze these aggregated goals behind this team’s ICO, it is logical to begin with the idea that doing so will give them a digital ecosystem that will be valued by their fans. As a recent interview with Jackson Palmer, the creator of Dogecoin, has mentioned, assuming that people will automatically switch to a Blockchain platform simply because of what it is, is a mistake.
As with any new business, any potential customers who are already using a similar solution, need to be incentivized to switch. Otherwise doing so is not worth the effort. For a bit more context on this, think about a new computer company that brands itself as a new and improved version of Apple. Because they have branded themselves in this way, they will now need to explain why people should ditch Apple and switch to their platform.
If they cannot, then they will not ever be successful. There are no exceptions. Every company that wants to succeed as a new platform needs to bring users en masse to its offering, through taking them from other offerings.
In the end, in the specific case of Avaí, their situation can be summed up in one central question: how will they explain to customers why their new digital economy is better and easier to use than their existing way of doing business?
By: BGN Editorial Staff