Usually, during a sporting event, the value of a crypto linked to a national football team increases. An increase generally consecutive to the victories of this one. However, this does not appear to be the case for the 2022 FIFA World Cup. Find out what happened to 4 fan tokens linked to major football teams.
A 90% drop since the start of the major sporting event
Forbes India found on December 7 that the value of FIFA Fan Tokens dropped a lot. A fall of between 60 and 90% since the start of the event. This decrease is especially observed with 4 tokens of fans of major sports teams. These are the cryptos linked to the teams of Spain, Argentina, Portugal and Brazil. Despite the success of teams from Brazil, Portugal and Argentina advancing to the quarter-finals, fan tokens have lost a lot of value.
Note that the Spanish team was eliminated from the competition on December 6th. On that day, Spain’s token, the Spain National Fan Token (SNFT), fell by 39%. At the same time, Portugal’s POR token saw an estimated drop of 6%. Intriguingly, this is arrived despite the victory of the team against Switzerland by 6 goals against 1.
It should be noted that FIFA fan tokens peaked some time before the start of the sporting event. This suggests that the event was affected by a well-known phenomenon: “buy the rumour, sell the news”.
Fan tokens have several detractors
Cryptos linked to sports teams have a large number of detractors. They view fan tokens as tools for traders to manipulate fanatical supporters to make profits.
Martin Calladine, author of The Ugly Game, said:We see the price of tokens increase in anticipation of football events such as signings or titles“. “Ltraders cash them in, prices crash and fans find themselves sitting on lossesvictims of their enthusiasm for their clubs“, he added.
Fan tokens were originally developed to allow supporters to interact with their favorite teams in a different way. That said, Brazil and Spain fan tokens saw their value increase significantly on September 28. Those of Argentina and Portugal hit all-time highs on November 18. Then they all started falling at the start of the World Cup.
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