The value of the Argentine Football Association Fan Token (ARG) has sunk in accordance with the high hopes of the country’s dedicated soccer fans after Argentina’s unexpected 2-1 loss to Saudi Arabia in the opening game of the FIFA World Cup.
As seen on coinmarketcap.com, the ARG token dropped from $7.21 at the start of the game to $4.96 by the end of the game due to the dismal performance of the Lionel Messi-led soccer squad.
However, the token has recovered to $5.39 as of this writing and is up 5.23% in the last 24 hours. In comparison, the base price of “The Saudis,” a collection of non-fungible tokens (NFTs) with a Saudi Arabian theme that has nothing to do with the soccer team, surged by 52.6% from 0.196 Ether (ETH) to 0.3 ETH over the same time period before levelling off at 0.225 ETH, or about $250. According to OpenSea data, the collection’s 24-hour selling volume increased by 990%, coming close to 24.5 ETH.
Fan Token Industry Entering A Cool-Off Period?
Delphi Digital, a cryptocurrency research firm, has noted that the native token Chiliz (CHZ) of the fan engagement platform Socios, along with other soccer-based tokens depicting participating nations, has cooled off considerably over the last few days despite the built-up hype surrounding the FIFA World Cup, which officially started on November 20.
CHZ was built as an ERC-20 token on Socios, a blockchain-powered fan interest platform that has been a major force in the recent surge of sports-themed cryptocurrencies. Socios is used by many of the soccer-themed tokens because of the platform’s connections with major clubs including Barcelona F.C., Paris Saint-Germain, and Manchester City F.C.
Although tokens do not reflect actual equity in a team, they do grant their purchasers certain voting rights in sponsored teams’ internal affairs and provide them with other benefits.
Recently, the Premier League, which organizes English soccer, confirmed its negotiations with its teams about signing a multi-year Non-fungible token (NFT) contract with Sorare, a French cryptocurrency business.