Argentina’s shock 2-1 loss to Saudi Arabia in the opening match of the FIFA World Cup has sent the price of the Argentine Football Association’s Fan Token (ARG) plummeting.
The ARG token was priced at $7.21 at kickoff, but due to the poor performance of Lionel Messi’s football team, the token price dropped 31% to $4.96 by the end of the match, rising to $5.22 at the time of writing. did. according to To data from CoinGecko.
whereas the floor price The price of ‘The Saudis’, a collection of Saudi Arabia-themed non-fungible tokens (NFTs) unrelated to football teams, is priced at around 0.225 ETH after a 52.6% surge from 0.196 Ether (ETH) to 0.3 ETH. cooled to $250.
Collection sales also surged by 990% in the last 24 hours, approaching 24.5 ETH. according to to OpenSea data.
Despite the hype around the FIFA World Cup officially kicking off on November 20, cryptocurrency research firm Delphi Digital says that Chiliz (CHZ), the native token of fan engagement platform Socios, is among the leading alternatives. In addition to football-based tokens, participating nations have also cooled considerably in recent days.
As the FIFA World Cup 2022 kicks off, Football Fan Tokens have plummeted in the last three days.
Chile / $CHZ: -twenty one%
Argentina / $ARG: -17%
Portugal / $POR: -17%
Brazil / $BFT: -twenty one%
Spain / $SNFT: -31%
Peru / $FPFT: -26%The index (FOOTBALL) is down 21% over the period. pic.twitter.com/y7tb72R3Et
— Delphi Digital (@Delphi_Digital) November 21, 2022
CHZ is an ERC-20 token native to Socios, a blockchain-powered fan engagement platform, and one of the biggest contributors to the sports fan token boom.
Many of the football-based tokens will run on Socios, which has partnered with some of the biggest football clubs in the world, including Barcelona FC, Paris Saint-Germain FC and Manchester City FC.
Tokens do not represent team ownership, but they do allow buyers to vote on some decisions made by sponsoring teams, as well as give access to some rewards.
Related: Billions of Dollars Are Spent Marketing Cryptocurrencies To Sports Fans — Is It Worth It?
The popularity of fan-based tokens in the sports industry has also skyrocketed recently, with token sales increasing by over 250% monthly since January 2022.
Some seem to see tokens as an indirect way to bet on the success of such teams, even though they were not designed for that purpose.
Tokens are also affected by factors other than the soccer team’s on-field success, such as regular fluctuations in the cryptocurrency market and breaking news events.
As an example, the recent FTX crash saw the price of CHZ drop nearly 40% since the exchange reported liquidity problems and advancing bankruptcy.
In May, smart contract platform Algorand became the first blockchain-based official sponsor of the FIFA World Cup, which is scheduled to end on December 18th.
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