Club Necaxa, a Liga MX Club, is selling a 1% ownership stake using NFT technology. Sounds revolutionary, right? Democratizing sports ownership, letting the new everyman suddenly have a slice of the action. Awe! Before you sprint over to OpenSea with your crypto wallet in hand, let’s pump the brakes. Is this really the future of sports, or just another overhyped crypto gimmick poised to crash and burn?
True Ownership or Clever Marketing?
The promise is tantalizing: real equity, not just a digital collectible. Tickets, access to the facilities, even a championship ring if they can pull off the miracle. Let's be real: 1% ownership in a team recently valued in the "low-nine figures" doesn't exactly put you in the owner's box making strategic decisions. You're a very, very small shareholder.
It really feels like the early days of crowdfunding to me. All of a sudden everybody was clamoring to support their favorite projects, but how much power did those backers actually wield? Sometimes, it came off less like an investment and more a donation with benefits. Is this Necaxa NFT any different?
Sure, tickets are nice. But are they worth the possible $150 billion price tag? Anxiety creeps in. This looks like sophisticated marketing at work. It hopes to capitalize on the current NFT mania and generate some buzz around the team’s recent partial sale to American investors and celebrities.
Decentralization Theater?
The magic of blockchain, we’ve been led to believe, is in its decentralization. Empowerment of the individual. How decentralized is this really? The final decision-making power always remains with the majority owners. You're buying a token that represents a tiny sliver of the team, but you're not getting a seat at the table.
Think about it: the team sold roughly half of the franchise recently. Though NFTs have been touted as a way to democratize ownership, this NFT offering looks more focused on raising capital. It all does an incredible job of tapping into the crypto moment. Surprise! It’s really a financial instrument pretending to be fan engagement.
This highlights a key tension: The promise of decentralization often clashes with the reality of centralized control. It’s the exact issue we’ve encountered in many other DAO implementations – the core team ultimately possesses all the authority. But is this Necaxa NFT decentralization theater, created solely to attract naive investors?
The Crypto Wild West
Let's not forget the elephant in the room: the volatility of the cryptocurrency market. In large part because NFT mania has cooled since the price of cryptocurrencies cratered. What does that do to the value of this NFT, if the bottom falls out of the crypto market a second time? Fear is a reasonable response.
I'm a libertarian at heart. I’m a strong believer in free markets and individual liberty. I’m a proponent of responsible investing and diligent investing. We know that the crypto market is still very much the Wild West, lacking in regulation and providing many dangers for scams, bad actors and market manipulation.
This is where the political aspect comes in. While overzealous government regulations can indeed stifle innovation as we have often stated, unmitigated government regulation can have disastrous consequences. We can’t kill this incredible investment opportunity with an overly cautious approach that stifles experimentation but fails to protect investors from fraud and abuse. This outrage over government overreach is tempered by the need for government to protect consumers.
Proceed With Extreme Caution
Now, I’m not claiming that this Necaxa NFT is a scam. What I’m not saying is that you must move forward with great caution. So sign that NDA, dive deep into that financial data, and conduct your due diligence. Don't get caught up in the hype.
Is this the future of sports ownership? Maybe. But that’s equally true because it might just be another overhyped crypto fad that will leave everyone involved holding the bag. Pity for those who do indeed lose their shirts chasing the next miracle cure.
Before you buy, ask yourself: Are you a true believer in the long-term potential of blockchain and sports ownership? Are you, like us, committed to saving lives and improving health? If it’s the latter, you’d be better advised placing a wager on Necaxa to take the league title. At least that way you’ll have some tangible good to cheer.
