Argentina’s shock 2-1 loss to Saudi Arabia in their FIFA World Cup opener has sent the Argentina Football Association (ARG) Fan Token price plummeting, in line with the hopes of die-hard football fans in the country.
With the price of the ARG token starting at $7.21, the poor performance of the Lionel Messi-led soccer team caused the token to drop 31% to $4.96 by the end of the match, before rising to $4.96 at the time of writing $5.22. data from Coingeck.
In contrast, the floor price “The Saudis”, a collection of non-fungible tokens (NFTs) on the theme of Saudi Arabia, unrelated to the soccer team, skyrocketed by 52.6% from 0.196 Ether (ETH) to 0.3 ETH in the same time before cooling down to a price of 0.225 ETH, around $250.
The collection’s sales volume also increased by 990% in the last 24 hours, reaching 24.5 ETH according to OpenSea data.
Despite the growing hype for the FIFA World Cup, which officially began on November 20, cryptocurrency research firm Delphi Digital noted that Socios Chiliz (CHZ) native fan engagement platform token, in addition to other soccer-based tokens representing the participating countries, have it also cooled considerably:
Soccer Fan Tokens have been running low for the past 3 days as the 2022 FIFA World Cup kicks off:
The index (FOTBAL) decreased by 21% over the period. pic.twitter.com/y7tb72R3Et
— Delphi Digital (@Delphi_Digital) November 21, 2022
CHZ is an ERC-20 token native on Socios, a blockchain-powered fan engagement platform that is one of the biggest contributors to the sports fandom boom.
Many of the soccer tokens run on Socios, which has partnerships with some of the biggest soccer clubs in the world, including FC Barcelona, Paris Saint-Germain FC, and Manchester City FC.
While the tokens do not represent ownership in the teams, the token allows the purchasers to vote in some decisions of the sponsoring teams and also gives access to some rewards.
The popularity of fan tokens in the sports industry has also skyrocketed recently, with token sales volumes often an increase of more than 250% monthly from January 2022.
Some seem to have seen the tokens as an indirect way of betting on the success of such teams, even though they were not designed for that purpose.
Tokens are also affected by factors other than the success of football teams on the field, such as the regular ebb and flow of crypto markets and breaking news.
An example is the recent collapse of FTX sending the CHZ price down nearly 40% since reports of the exchange’s liquidity problems and pending bankruptcy.
In May, it became the Algorand smart contract platform the first official blockchain-based sponsor for the FIFA World Cup, which is scheduled to end on December 18.