Rise, fall and resurgence of Adam Cole

Lea Hogg April 26, 2024

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Rise, fall and resurgence of Adam Cole

Adam Cole, the co-founder of the now-defunct Football Index, is back in the spotlight with a new venture, KiX, a footballer trading platform bearing striking resemblances to its predecessor. The collapse of Football Index in 2021 led to users losing an estimated ￡90 million in virtual footballer shares, averaging losses of about ￡3,000 per customer, with many losing significantly more.

From Football Index to KiX

Cole, (pictured above), who served as the former CEO of Football Index, co-founded the company with Mike Bohan. Despite his silence on social media since a May 2021 statement expressing his devastation over the company’s downfall, Cole has resurfaced as an investor and advisor to KiX. This has been met with disappointment from the victims of Football Index, with campaigner David Hammel describing it as a “real kick in the teeth.”

KiX, like Football Index, allows users to trade in footballers, earning rewards based on their performance. However, KiX operates on a different model and structure, trading footballers in the form of non-fungible tokens (NFTs) and using cryptocurrency. While some see this as an exciting and innovative use of technology, others view it as a risky vehicle for financial speculation.

The KiX platform acknowledges the similarities with Football Index but insists it is a completely new platform. Despite Cole’s involvement, a KiX spokesman confirmed that he does not have executive input at the operational or board level. The spokesman also clarified that Cole is not an employee or a shareholder and draws no salary from KiX.

The story of Football Index and KiX serves as a cautionary tale in the world of virtual trading platforms. As the saga continues to unfold, the victims of Football Index are left to grapple with the consequences of their lost investments, while the world watches to see if KiX will follow in its predecessor’s footsteps or chart a new path in the world of football trading.

A series of missteps and oversights

The downfall of Football Index, a once-promising virtual trading platform, was a complex event triggered by a series of missteps and oversights. BetIndex, the company behind Football Index, misrepresented the nature of their product in their license application to the Gambling Commission, and failed to report necessary changes to their product. This lack of transparency was compounded by the Gambling Commission’s own lack of regulatory oversight, which failed to scrutinize BetIndex’s product and language thoroughly.

Financial mismanagement played a significant role in the platform’s collapse. Just days before its downfall, Football Index was found to be “minting” and selling new “shares”, a move that raised serious questions about the company’s financial practices. The Financial Conduct Authority (FCA), too, came under fire for its handling of the case. Criticized for its slow response to requests from the Gambling Commission and inconsistency in messaging on regulatory responsibilities, the FCA’s failure further contributed to the platform’s demise.

At its core, Football Index was a high-risk trading platform, allowing users to trade in derivatives that led to significant financial losses. The platform’s collapse in 2021 resulted in users losing an estimated ￡90 million in virtual footballer shares. The aftermath of this catastrophic event continues to reverberate, with many former users still feeling the trauma of their lost investments and the impact it has left on their lives.