As a researcher with a background in both football and cryptocurrencies, I have been closely following the intersection of these two worlds with great interest. I have seen firsthand how fan tokens, which represent the digital assets associated with various football clubs, have experienced significant volatility, even after their respective teams win major tournaments.
The value of fan tokens for Spain and Argentina’s football clubs have taken a hit lately, even though both teams have recently triumphed in significant tournaments. A large number of these cryptocurrencies have dropped over 90% from their peak prices.
If their football team wins a significant tournament, you could anticipate a surge in demand for the fan tokens issued by the club.
After Spain triumphantly won the Euro 2024 championship by overpowering England, they discovered that their success wasn’t a constant occurrence.
Prior to the highly anticipated finale, the price of the Spain National Football Token (SNFT) reached a peak of $0.039, fueled by optimism that football history was on the verge of being created.
In the past three days, there has been a significant decrease of 43.5% for this token, and its value has dropped to a low of $0.022.
Things get even worse when you zoom out.
According to data from CoinMarketCap, the highest price ever recorded for an SNFT was $0.8633, which was reached back in September 2022.
Less than two weeks on, and it’s now lost 97.4% of its value.
The Royal Spanish Football Federation formally initiated this project, expressing their intention to be among the pioneering national football teams adopting a new trend.
It’s possible to contend that teams issuing their own cryptocurrencies have only brought financial damage to fans.
The values of the top five football fan tokens, including Paris Saint-Germain, FC Barcelona, and Manchester City, have experienced significant drops over the past few years, causing unease among their holders.
At present, PSG is priced at $2.83, marking a significant decrease of 95.4% from its all-time high of $61.23 reached in August 2021. Over the past three years, BAR has experienced a steep loss of approximately 97.5% of its value. Simultaneously, CITY is currently facing a decline of 93.7%.
With each new launch, there are usually prominent, glowing endorsements from beloved soccer stars, boosting the hype. When Lionel Messi transferred to PSG for a substantial fee, a portion of his payment came in the form of fan tokens.
Despite securing a 1-0 victory against Colombia in the Copa América final, Argentina’s official fan token experienced a setback.
In the lead-up to the crucial game, ARG experienced a significant surge. However, within just a week’s time, its value dropped nearly 50%.
Football and crypto entwine
The ties connecting crypto firms and football clubs have grown and grown in recent years.
As a researcher studying the cryptocurrency market, I’ve observed that following the bear market’s dip, there seems to be a renewed surge of interest among exchanges. They are now forming significant collaborations to reach out to sports enthusiasts and enlighten them about the crypto world.
As a seasoned finance and crypto industry expert with a deep-rooted passion for both technology and sports, I’m thrilled to share the latest developments in the world of cryptocurrency sponsorships. This week, Kraken, a leading global digital asset exchange, made headlines by securing the title of “Official Crypto and Web3 Partner” for Tottenham Hotspur – an esteemed English Premier League football club. Building upon their recent collaboration with Atletico Madrid, this partnership marks a significant milestone in Kraken’s strategic expansion into the sports sponsorship arena.
In the United Kingdom, cryptocurrency has gained widespread recognition and our studies indicate that its popularity surpasses that of several conventional financial services offerings. Joining forces with Tottenham Hotspur represents an opportunity to propel this technology further, and address the information gaps preventing certain football supporters from engaging with the crypto market.
Bivu Das
As a financial analyst, I’ve noticed that while there is no direct connection between club sponsorships and fan tokens, some observers have raised concerns over the increasing number of cryptocurrency companies sponsoring football clubs. The instability of digital assets brings up comparisons to gambling due to their inherent volatility.
UK is not a fan of fan tokens
Last October, a prominent group of British politicians proposed a radical measure in a report: they suggested prohibiting football clubs from issuing fan tokens completely. Notably, Dame Caroline Dinenage, who chairs the Culture, Media and Sport Committee, advocated for this restriction.
In the realm of sports, some clubs entice their dedicated fanbase with unstable cryptocurrency projects, allegedly offering special benefits in return, only for these advantages to frequently fall short.
Dame Caroline Dineage
Groups representing football fan bases have raised concerns over these digital assets, primarily due to the fact that they solely enable voters to decide on insignificant matters, like the selection of post-goal songs.
In response to criticism, companies that deal with fan tokens defended their use by telling Sky News that these tokens serve an essential role in enhancing fan interaction. (Paraphrased) Companies under fire for dealing with fan tokens responded to critics via Sky News, maintaining that these digital assets foster meaningful engagement between fans and teams.
Last season, fan tokenholders were granted access to over 24,000 matchday tickets and over a thousand merchandise items. They also had the opportunity to deepen their connection with their favorite team through innovative engagement methods.
Socios
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2024-07-21 17:24