They didn't disclose the fact that the passes would be using blockchain technology, apparently. Quite why they thought this was necessary is not clear, but it's not inherently a bad thing.
Unfortunately for them, however, blockchain/cryptocurrency/NFTs are all interchangeable according to the general public, so this has created a bit of a backlash.
From the quotes in the article, they didn't just "not disclose" so much as "lied". Regardless of subject matter, when someone cares enough to make sure something they don't want to be associated with isn't involved and then they find out it actually is, they have a right to be upset.
"Aware of the crypto thing," he tweeted. "We were told there was no NFT/crypto component but looks like that may not be the case. Waiting for responses to our emails/phone calls like others."
Which is a misunderstanding on the part of the author of that tweet: blockchain ≠ crypto. While it is the technology that crypto and NFTs are based on, blockchain can be used for a wide variety of different purposes.
So while the organizers probably should have been more clear about how they were going to implement the technology, it appears they didn't say anything that wasn't true.
I don't understand what it is about these media outlets with their allergy to the word "and"
It isn't print you don't have to say space or ink just put "and" in the title.
This time still could be easily rewritten to make more sense and if short length is there goal then you could rewrite it to be even shorter and it would still make more sense
"An influencer-based esports league has imploded over NFT controversy"