Sports

Football Index: Customer Money Trapped After Platform Suspended | Sports Lottery

The self-proclaimed “soccer stock market”, the Football Index, appeared to be heading for power on Thursday night for five days. After a major crash in that market As a result, customers remained trapped in the platform for tens of millions of pounds. If a business collapses, it will be the biggest failure of a UK betting company and individual clients may face potential losses of over £ 200,000.

A statement posted on the Football Index website Thursday evening made the decision to “pause the platform” “after a difficult and difficult week” for users.

The statement continues as follows: “We are, most importantly, pursuing a restructuring arrangement to reach agreement with our stakeholders, including our community. Our goal is to continue the platform in a restructured form. We have prepared this through management with bankruptcy practitioner Begbies Traynor and are pursuing the best results for our customers. “

Launched in 2015, the Football Index sells what is called the “share” of major soccer players and pays users “dividends” depending on the player’s performance on the pitch. In that model, it is believed that customers had to make large deposits and expenses on stocks to receive dividends for three years, and some users made six-digit deposits on the site.

At some point last year, Jadon Sancho, the site’s most popular player with nearly a million shares in circulation, sold for £ 15. Before the platform shut down on Thursday night, Sancho’s “buy” price had dropped to less than £ 1.

Since its launch, some areas of the gambling industry have been skeptical about the long-term outlook for the football index, including comparisons with Ponzi schemes and murine schemes. Ponzi schemes and murine schemes rely on revenue from new customers to pay dividends to other customers further above the pyramid. When Ponzi runs out of new users, the collapse is inevitable and existing users will not be able to recover their funds.

Sign up for The Recap, the editor’s recommended weekly email.

Many customers of the Football Index will be afraid of Thursday’s news. latest, And the most spectacular, Of some crashes in that market After September 2020.

The Football Index is a betting company regulated by the Gaming Commission. However, its website and business model reflect a market-making platform for derivatives trading, and one of the many questions that needs to be answered when the platform is collapsed is the Gambling Commission, not the Financial Conduct Authority. That’s why we took responsibility for the regulator. To supervise its operation.

Football Index: Customer Money Trapped After Platform Suspended | Sports Lottery

Source link Football Index: Customer Money Trapped After Platform Suspended | Sports Lottery

Back to top button