REVEALED: Liverpool’s NFT range flops with just 10,000 sold out of 171,000 available… but auction still raises over £1m for club and its charity in their much-maligned foray into the cryptocurrency market
- Liverpool’s venture into cryptocurrencies has had a very mixed start
- The Reds sold only 10,000 of a potential 171,000 NFTs put up for sale last week
- But total sales reached £1.125m, with over £280,000 going to LFC Foundation
- If all the possible NFTs were sold it could have raised around £8.5m
- Fans were not happy with the move, accusing the club of trying to exploit them
Liverpool’s controversial foray into the world of cryptocurrency has seen the club sell less than 10,000 out of a potential 171,000 non-fungible tokens.
The NFTs – digital artworks of stars such as Mohamed Salah and manager Jurgen Klopp – were put on sale at auctioneer Sotheby’s for $75 (£57) each – $12.8m (£9.8m) in total.
The headline figure of 9,721 sales suggests a failure to attract anywhere near the investment the club had hoped for, with under six per cent of the possible NFTs sold.
Yet Liverpool can yet point to revenue from the sale of their NFTs reaching £1.125million, with £281,374.98 of that amount going to its charity, LFC Foundation.
Randomly-generated ‘Hero’ tokens, based on Klopp and 23 first-team players, were priced at $75 (£57.20), along with 24 unique ‘Legendary’ tokens. Artworks of Salah and Klopp fetched more than $80,000 (£61,000) each at auction.
Liverpool sparked a furious reaction from supporters after announcing their plans to launch a collection of NFTs at the end of last month, which was seen by many as an attempt to exploit fans and generate more revenue in the process.
Sales of the digital assets began last week, with the creation by algorithm of up to 171,072 artworks possible – although Liverpool insist this was never the expectation of sale and the unsold permutations were never minted.
Liverpool’s controversial foray into the world of cryptocurrency has seemingly so far proven unsuccessful. Pictured are two of their NFTs – digital artworks of Mo Salah and Virgil van Dijk
The Reds had around 171,000 potential NFTs based on Jurgen Klopp and his players for sale
Had the full number of NFTs possible been sold, the launch could have raised over £8.5m in sales.
The sales figure also doesn’t bear in mind the cost of producing NFTs, the commission owed to Sotheby’s and advertising fees.
‘Where Liverpool shot themselves in the foot was by releasing that many,’ Tim Mangnall, chief executive of Capital Block, NFT consultants to the sport and entertainment industries, told City AM.
‘No club in the current state of play was ever going to sell 171,000 NFTs in that short period without going hell for leather.’
However, he added: ‘Liverpool should overall be happy,. It’s very easy for everyone to bash them but they sold nearly 10,000 and made their fans aware of it and ultimately it’s a good step for the sector to help create mass adoption.’
But they have only sold 9,701 of the digital assets after putting them on the market
Sports business expert Professor Simon Chadwick told City AM: ‘One imagines that club officials will be somewhat perturbed by the outcomes and, indeed, the entire process.
‘A combination of resistance to what the club is doing, disinterest in NFTs, the pricing strategy Liverpool has adopted, and a lack of familiarity about what NFTs are and why someone should buy them, have all contributed to the situation Liverpool now faces.’
Nike had also partnered with Liverpool in the venture, meaning the club are likely to bring in a fee from the kit manufacturers after including their branding on several NFTs.
Read more at DailyMail.co.uk