The World Cup is having an impact on tokens in addition to the crypto winter.
Today, the Spain National Football Team Fan Token (SNFT) dropped 42% from $0.09 to $0.03 after the squad’s 3-0 defeat in extra-time to Morocco in the FIFA World Cup, CoinGecko figures show.
Since the kick-off of the World Cup, crypto sports gamblers have been investing in tokens named after their preferred teams.
The Argentine Football Association Fan Token (ARG) serves a purpose similar to that of DAO governance tokens, enabling owners to cast their vote on upcoming fan activities but not on the team’s management or roster.
Sports fan tokens are different from other tokens in that their value does not depend on the volatility of the cryptocurrency market, but rather on the team or game they represent.
The ARG token price dropped after Saudi Arabia’s victory over Argentina on November 23, 2022, with fans cashing out their tokens.
At the beginning of the 2022 World Cup, the Argentina team fan token was valued at $8.10 as reported by Coingecko. Unfortunately, following the team’s loss three days later, the token dropped to $5.35 and has not recovered since.