Fan tokens often see gains before events and losses afterward. Spain’s UEFA 2024 soccer championship victory is a prime example of this trend.
Spain’s Victory and Token Reaction
Spain celebrated their UEFA 2024 soccer championship win against England, securing their fourth European Championship title. However, the Spain National Fan Token (SNFT) saw a 20% drop to $0.024 within 24 hours, with a market cap of $565,000. In contrast, other fan tokens like Paris Saint-Germain and FC Barcelona traded 2% to 4% higher, alongside Bitcoin’s price surge.
Background of SNFT
Launched in 2021 by the Royal Spanish Football Federation and Bitci, a Turkish blockchain platform, the SNFT token aimed to boost fan engagement and offer exclusive experiences to sports fans and investors.
Market Behavior of Fan Tokens
The drop in SNFT is likely a “sell the fact” reaction. Prices had surged over 70% to $0.03845 in the three days before the final. Research shows fan tokens often rise before events and drop afterward, a phenomenon seen during the FIFA World Cup 2022.
Diverse Opinions on Token Value
Researchers have mixed views on how soccer tournaments impact fan token values. A 2022 study by Mieszko Mazur and Miguel Vega found no correlation between team performance and fan token valuation. The study highlighted the volatility of fan tokens, noting they often underperform major cryptocurrencies like Bitcoin (BTC) and DeFi coins in the long term.
Impact of Major Tournaments
Conversely, another study indicated that larger tournaments like the Champions League influence fan tokens more due to a broader audience and the high prestige of these events compared to regional leagues.