Despite Spain’s celebratory win at the UEFA Euro 2024, the Spain National Fan Token (SNFT) experienced a significant drop, sliding 20% in the last 24 hours.
Fan tokens like SNFT often see a rise in anticipation of major events and a decline afterwards. This phenomenon, known as “sell the fact,” appears to be in play here. Following Spain’s 1-0 victory over England in the tournament final on Sunday, securing their fourth European Championship, the SNFT token dropped to $0.024. The token’s market capitalization stood at $565,000 as of the latest update.
In contrast, other major fan tokens, including those of Paris Saint-Germain and FC Barcelona, saw a modest rise of 2% to 4%, likely buoyed by a concurrent increase in Bitcoin’s value.
The SNFT token was launched in 2021 through a collaboration between the Royal Spanish Football Federation and the Turkish blockchain platform Bitci. Designed to boost fan engagement, the token offers unique experiences for both sports fans and investors.
The decline in SNFT’s value follows a 70% surge to $0.03845 in the three days leading up to the final, demonstrating a typical “buy the rumor, sell the fact” trend. This pattern has been observed before, such as during the 2022 FIFA World Cup, where fan tokens experienced anticipatory gains followed by post-event losses.
However, the relationship between fan tokens and sports events remains a topic of debate. A 2022 study by Mieszko Mazur and Miguel Vega found that team performance does not significantly impact fan token valuations, which tend to be volatile. The study noted that while fan tokens might see an initial surge, they often underperform compared to major cryptocurrencies like Bitcoin and decentralized finance (DeFi) coins in the long term.
Conversely, another study suggested that major tournaments, like the Champions League, have a more pronounced effect on fan tokens due to their broader audience and higher prestige compared to regional leagues.
As Spain celebrates its UEFA Euro 2024 triumph, the SNFT token’s recent performance serves as a reminder of the unique dynamics at play in the fan token market.
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