Crypto app “Tradar”: Fans should buy digital players – with financial risk

Four German clubs have a new partner in the crypto sector. The “Tradar” app sells digital shares to players. The fans should be able to trade the shares and make profits – but the money can be lost completely.

Bayer 04 Leverkusen, VfL Wolfsburg, TSG Hoffenheim and FC Schalke 04 have been working with “Tradar” together. The focus is on one message: football fans should use the app from “Tradar“Be able to earn money.

Schalke 04 writes on its website “Schalke knowledge as an investment”according to Hoffenheim fans can “make profits in real time” and according to VfL Wolfsburg it enables “Tradar” the fans, from one “To benefit from market value development”. The provider “Tradar” itself calls on people on its website: “Turn your football knowledge into money.”

Fans should buy and sell digital shares in players

“Tradar” sells so-called “player cards” to fans via its app.Tokens“. “Player-Tokens” are digital shares of players from the four clubs that work together with the app. Fans can use these “players”Tokens“Buy in the app using a credit card.

Each player in the app consists of up to one million Tokens. The app sets a market value for players, which determines the issue prices. For example, if a player has a market value of ten million euros, the price for one is Tokens ten euros. A Tokens Leverkusen’s Florian Wirtz currently costs 85 euros, a digital share of Schalke’s Lino Tempelmann costs two euros. The Tokens If the players perform well, they can also bring in a kind of bonus points that are not worth any money, but which fans can use to buy, for example, participation in the raffle for jerseys or tickets.

But they remain crucial Tokens yourself. Because from the moment of purchase they are subject to Tokens Fluctuations in value. The players become digital objects of speculation for the fans. “You recognize the next big talent? Buy the player cheaply and sell him for a profit when his career takes off”writes “Tradar“. Who the Tokens on “Tradar“If you want to sell it and make the promised taxable profit, you have to find a buyer among the people who use the app.

Money invested can be completely lost

However, if you can’t find a buyer for them on the trading platform in the app Tokenswhat can happen “Tradar” in the document “Risk information” on its website explains: The total loss of the money invested is possible. The option, Tokens According to “Tradar“-Information only planned from the second half of the season. Only one purchase is possible before that.

The total loss can also occur if the operators use the app “Tradar” take it off the market again. Since the tokens are only available at “Tradar“can be sold, “The cessation of our business operations means that player tokens can no longer be sold and therefore become worthless”Unless another provider takes over the administration, the risk information states. And the following applies in the conditions: “A return of the tokens is excluded.”

“Tradar“is from the Munich company”MFC Labs GmbH”. “Tradar is very aware of its responsibility towards the fans”says Felix Schmidt, managing director of “MFC Labs GmbH” to the WDR magazine Sport inside upon request. “We never want to and will never make false promises to the fans.” There is a risk of losses up to and including total loss “clear and distinct” pointed out, says Schmidt.

Crypto expert: “I would be generally skeptical”

“I would generally be skeptical about new ones Tokens“says Prof. Dr. Philipp Sandner in conversation with Sport inside. The 43-year-old is in charge Blockchain Center at Frankfurt School of Finance & Management. “We have seen in recent years that token markets can crash dramatically.”

He is definitely a supporter of business models Blockchainarea, emphasizes Sandner. “I wouldn’t describe what this app offers as a solid form of investment”says the crypto expert. “That is a entertainmentarea in which you should only invest smaller amounts at most. It’s not a good way to make money – especially because of the risk that the money could be completely lost.”

Gambling? “Tradar” sees itself as a financial product

Advertising slogans like “You don’t play with money – you let it play” or “Turn your football knowledge into money” reminiscent of sports betting. As with betting, financial success is “Tradar“depends on the performance of the players on the pitch, which significantly influences the value of the shares. Is “Tradar“So gambling?

The states’ joint gaming authority (GGL) informed Sport at its request inside that they currently have no information about a legal assessment of “Tradar“, since the app is in the authority “currently still in the review process”. The gaming authority announced in April that “fantasy-Football” known business model was classified in certain forms as gambling. As a result, the manager game disappeared “Spitch“due to lack of a valid license from the market.”Spitch” was a manager game officially licensed by the German Football League (DFL) at the time, which Jürgen Klopp also advertised. Lawyers are now offering help in recovering losses.

“Tradar” recently compared himself to Instagram in a broader sense, even with “fantasy-Football”, but rejects any connection to gambling. “Tradar is not a game, but a financial product”says “Tradar“-Operator Schmidt. “We took a lot of time when designing Tradar and paid close attention to adhering to the requirements of German and European legislators. Tradar is not a game of chance.” Schmidt, managing director of the “MFC Labs GmbH” indicates that the company “through our regulated partners” is subject to supervision by the Federal Financial Supervisory Authority (BaFin).

BaFin: It is not “MFC Labs” that has permission, but another company

The necessary approval for investment brokerage from BaFin is held by “Concedus GmbH”, which manages the app’s crypto assets – i.e. that one Tokens, which are offered to fans. The “MFC Labs GmbH” mediates through “Tradar” the players-Tokens as an investment for “Concedus GmbH” to the fans. This is a very common structure.

“That means that the MFC Labs GmbH itself does not have permission from BaFin and is not supervised by it.”says BaFin when asked by Sport inside with. But the “MFC Labs GmbH” as the operator of “Tradar“act as an intermediary in the name and on behalf of the liable company “Concedus GmbH”, “which must therefore in turn be attributed to the activity of the tied agent”says BaFin.

“Concedus GmbH” from Middle Franconia says it specializes in: “To design new business models and the latest trends in the financial industry in a socially acceptable manner and to operate them in compliance with the law across Europe via our digital infrastructure”.

The clubs say: Risks are pointed out within the legal framework

Sports inside asked Bayer 04 Leverkusen, VfL Wolfsburg, TSG Hoffenheim and FC Schalke 04 about their respective collaborations with “Tradar“. The clubs do not answer the question of how much money they will receive from the new sponsor, citing the confidentiality of the contractual contents. Also “Tradar” did not comment on the sums paid upon request.

Sports inside also asked the four clubs whether they believe they are making their fans sufficiently aware of the risks. Leverkusen, Wolfsburg, Hoffenheim and Schalke inform in similar sentences that the risk information on the website of “Tradar“It is important to ensure that legal regulations are adhered to in this regard, all clubs write accordingly. The use of the players’ personal rights is “Tradar” granted within the framework of the legal possibilities, according to the four clubs.

“Tradar” wants to become active with even more clubs

“Tradar” will now advertise to the clubs. At VfL Wolfsburg, for example, the app will, according to the club, present statistics on the scoreboard in the future. “Tradar” published a video clip on YouTube, which will be shown on the video cube in the Schalke 04 stadium in the future. And at the four clubs it should be for “Tradar” not stay. “We are currently having exciting discussions and will communicate further additions soon”says app operator Schmidt and followed up with action: On Thursday (June 28, 2023), FC Augsburg became the fifth club from “Tradar”.

took part in financing rounds “MFC LabsAccording to its own information, it initially raised 1.3 million euros and then another four million euros. When asked, the company did not say where exactly the money came from. “This is Business angels from the German economy”says Schmidt. “Some of them have a great and very competent connection to football and the entire German sports scene.” Business angels are called investors who support newly founded companies in the early stages.

Professional football – looking for money on Web 3.0

Professional football has been trying to make money on “Web 3.0” in various ways for several years. Especially in England, but also in other European countries, “fan”Tokens“Sold as the clubs’ digital currency or so-called NFTs as digital collectibles. Many clubs also advertised cryptocurrencies. In Germany, too, several clubs work with corresponding providers. The crypto industry has since fallen into a crisis, with many of the world’s sports and other areas being affected Digital collectibles sold with NFTs are now considered worthless.

Joey D’Ursojournalist at the portal “The Athletic” has been researching both crypto investments and gambling in football for years. He has spoken on the topic several times in British Parliament committees. “It is right to be very careful about offers that combine football with financial investments”says D’Urso in an interview with Sport inside. He referred to the company “Football Index” in Great Britain. “This was a gambling website designed to look like football stock trading. It was a complete disaster. Football Index collapsed, people lost huge amounts of money. I would recommend people only put so much money into such schemes, just as they are willing to lose.”