It is no secret that football is the most popular sport in Brazil, and football retains this status for decades. Interestingly, Vasco da Cama is one of the leading teams in Brazil. It is worth mentioning that Vasco da Cama and one of the largest cryptocurrency exchanges in Latin America, announced plans to tokenize the rights of the solidarity mechanism of FIFA.
As a reminder, the FIFA Solidarity Mechanism is a part of the FIFA Transfer Regulation, which acts as a selling right for a player and encourages clubs to develop young players. Importantly, thanks to this mechanism, up to 5% of the total value of each international transfer of an athlete can be shared with all the clubs that an athlete played for during his career until he was 23 years old.
Importantly, as part of the partnership, Vasco da Gama and Mercado Bitcoin will tokenize the solidarity mechanism. Moreover, holders of the tokens will be able to receive a percentage of the sale value of any player to the athlete’s forming club.
Football and cryptocurrency exchanges
Based on the information provided by one of the largest cryptocurrency exchanges in Latin America, in total there will be 500,000 tokens. Interestingly, they hope to sell for a total of R$50 million (around $9 million). Each token will correspond to a fraction of the solidarity mechanism rights of 12 athletes joined the club’s youth teams.
Importantly, the club wanted to use cryptocurrencies for a long period of time since 2018. This way they want to generate new revenue.
Interestingly, this initiative is part of the strategic planning actions implemented by the current management of the club. Moreover, to reach this goal, the club is a partner of MBDA. Notably, MBDA is a company in the Mercado Bitcoin ecosystem responsible for the tokenization of several alternative assets.
It is worth mentioning that, Mercado Bitcoin already guaranteed the pre-purchase of 20% of the 500,000 tokens. The whole sale will be credited to Vasco da Gama before the opening of the sales for the average investor.
Moreover, this token has the opportunity to change the way football deals with FIFA’s solidarity mechanism. People should keep in mind that, Vasco da Gama is the first club in the world to have this token. However, Mercado Bitcoin wants other clubs to have access to this token. Moreover, other clubs should also pay attention to such initiatives.
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