“Learned something again” podcast on Floki: The cryptocoin that Bayer Leverkusen sponsors

Bayer 04 Leverkusen have had a new sponsor since December, Floki is stuck on the sleeves of the football team. But how do you sign contracts with a cryptocurrency? An expert clarifies and warns, because Leverkusen has already been taken in by a dubious crypto company.

Floki is a cryptocurrency named after Floki, Elon Musk’s admittedly rather cute dog. A Shiba Inu, that’s the name of the breed. However, Floki has nothing to do with the cryptocurrency called Shiba Inu. Just as little as Tesla boss Musk with Floki the cryptocurrency. A complicated industry in which it is easy to lose track.

In any case, Floki is a comparatively young undertaking. The currency has only been around since last summer, on platforms like Coinmarketcap it does not make it into the list of the 100 most valuable crypto offers. Unlike Shiba Inu, who is ranked 13th. Unsurprisingly, Bitcoin reigns supreme.

Floki also wants to go there. “The goal is to become the best known and most used cryptocurrency in the world,” it says website. In order to achieve this goal, the currency has signed a number of sponsorship deals, including with eight football clubs. There are well-known traditional clubs such as SSC Naples from Italy or Fenerbahce Istanbul from Turkey.

But how did Floki actually do it? How does a currency contract? Especially a decentralized cryptocurrency that belongs to nobody? One askthat Bayer 04 Leverkusen can answer. Because the Bundesliga club is one of the football teams that have recently been sponsored by Floki. The logo of the cryptocurrency of Elon Musk’s dog has been stuck to the sleeves of the Werkself since the beginning of December.

Partners with PlayToEarn NFT gaming metaverse

In Leverkusen they are very happy about that. With Floki they have found an “innovative partner” with whom they can further develop their international marketing activities – “with digital products based on blockchain technology”, as stated in the then press release is called. Among other things, a PlayToEarn NFT gaming metaverse is planned. “We know that it is being worked on,” the club responded appropriately cryptically when asked what they knew about it.

In any case, people in Leverkusen are convinced that Floki is a serious project. The offer has been legally checked, those responsible explain when asked. “There are no concerns or indications from the responsible authorities against the legality of this offer in Germany.”

An answer that does not convince Philipp Sandner. “What else should the party that signed the contract say?” Asks the economist rhetorically in the ntv podcast “Learned something again”.

The stock exchange regulator is skeptical

Sandner is the founder and head of the Blockchain Center at the Frankfurt School of Finance & Management, cryptocurrencies are his job and everyday life. He also regularly receives offers for token or NFT offerings and inquiries as to whether his university might be interested in a partnership. But you look at it very conservatively and almost always turn it down, he says. “Because you often have the feeling that it’s primarily about fundraising, ie collecting a lot of money as quickly as possible.”

In fact, not all cryptocurrencies are decentralized, technical constructs like Bitcoin. In most cases, these are hybrid forms or projects with an active team of people running the fortunes of the currency.

Same with Floki. They want to be completely decentralized, it says on the website. But until then, members of the Floki community exercise control. These are the so-called FlokiVikings – Crypto Vikings with such creative names as Mr. Brown Whale or B (The Viking), who make money with every transaction. Three percent of the purchase or sale amount goes into their pockets.

“Ultimately, that’s exactly why the American stock exchange regulator, the SEC, is skeptical,” explains Philipp Sandner. Projects like this often involve illegal securities issues that use buzzwords like “decentralized” to avoid regulation. “That’s the game you see quite often.”

“Bit flat for an audit report”

The crypto expert recognizes references to this game on the Floki website, among other things. It was too colorful for him to be serious. Frequently used keywords such as memes, utility or charitability also make Sandner skeptical. And the processing of transactions: Two out of three offers lead to unregulated cryptocurrency exchanges, he explains in the podcast. If you use the third, the credit card, a window pops up that – depending on the course – prescribes a minimum investment of up to 200 US dollars and surprisingly holds the buy button directly under the nose of potential customers.

Even a financial report provided by Floki fails to convince the head of the Blockchain Center. Ultimately, you can only look at the technical processes, he says. “That’s a bit shallow for an audit report.” The fact that Floki introduces some team members with avatars is therefore not appropriate for a serious crypto project. Just as little as the missing imprint. “It’s all geared towards marketing,” says Sandner. “When I looked at the website, I didn’t understand what these tokens do either. So what’s the added value if I buy Floki? All alarm bells are really going off for me.”

Bayer 04’s second attempt

But shady doesn’t automatically mean Floki is a hoax. Due to the lack of regulation, such offers move in gray areas, where it is difficult for outsiders to recognize whether the drive is malicious, simply negligent or serious but inexperienced. In the end, however, that doesn’t matter to the buyers if the coins are worthless and the money is gone – such as the project IQONIC illustrated.

The crypto company from Monaco also wanted to become number one within a few years. Unlike Floki, however, not among all cryptocurrencies, but among “fan engagement platforms in the sports and entertainment world”. Followers should be able to buy unique and exclusive fan articles via the platform, so-called fan tokens, which are also based on blockchain technology.

As with Floki, the path to the top at IQONIC was to be paved through partnerships in the sports world. There were sponsorship agreements with La Liga, the Spanish football league, but also with individual clubs such as FC Valencia from Spain or traditional French clubs such as Olympique Marseille or AS Monaco. The European Handball Federation EHF was also impressed by IQONIC, as was the McLaren Formula 1 team. And Bayer 04 Leverkusen, of course. At the beginning of the current Bundesliga season, instead of using Floki, the factory club wore crypto fans with IQONIC on their sleeves.

Closing time on Christmas Eve

It was a flop as the crypto company ran into huge payment difficulties within a few months and had to close its doors stop operation. This was announced quietly and secretly on Christmas Eve, December 24, 2021, like the football magazine Josimar reported. A crypto expert is quoted there as saying that IQONIC was a swindle or even a fraud. A project where people who wanted to buy fan tokens allegedly lost a lot of money. A fate that Philipp Sandner can also imagine for buyers of Floki.

“Here’s what happens here,” explains the crypto expert. “People are lured to buy these tokens – like they did with the T-Share. There is advertising everywhere. If I transfer money, I also get tokens, but then the price plummets and my 500 euros may have become 50 euros . And this decision is influenced by the fact that a football club and other authorities slap their logo on this website and thus implicitly say: That’s good what they’re doing.”

According to their own statements, more than 400,000 people worldwide have already bought Floki. When asked, the club did not want to say whether Bayer Leverkusen is also one of them. This can also be taken as a sign.