Argentina’s shock 2-1 loss to Saudi Arabia in the FIFA World Cup opener sent the price of the Argentine Football Association (ARG) fan token crashing, in line with hopes of the country’s diehard football fans.
With the ARG token priced at $7.21 at kick-off, the poor performance of the football team led by Lionel Messi saw the price of the token drop 31% to $4.96 at the end of the match. before rising to $5.22 at the time of writing, according to data from Coingecko.
In contrast, the floor price of “The Saudis”, a Saudi Arabia-themed collection of non-fungible tokens (NFTs) unrelated to the football team, soared 52.6% from 0.196 Ether (ETH) to 0.3 ETH over the same period before cooling down to a price of 0.225 ETH, around $250.
The collection’s sales volume has also increased by 990% in the past 24 hours, approaching 24.5 ETH according to data from OpenSea.
Despite the hype building up for the FIFA World Cup, which officially kicked off on November 20, cryptocurrency research firm Delphi Digital noted that the platform’s native Chiliz (CHZ) token Fan engagement for Socios, in addition to other football-based tokens representing participating nations, has also cooled considerably in recent days:
Football fan tokens have crashed in the last 3 days as the 2022 FIFA World Cup begins:
The (FOOTBALL) index is down 21% over the period. pic.twitter.com/y7tb72R3Et
—Delphi Digital (@Delphi_Digital) November 21, 2022
CHZ is a native ERC-20 token on Socios, a blockchain-powered fan engagement platform that has been one of the biggest contributors to the sports fan token boom.
Many soccer-based 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.
Although the tokens do not represent team ownership, the token allows purchasers to vote in certain decisions made by sponsoring teams in addition to allowing access to certain rewards.
Related: Billions Are Spent Marketing Crypto To Sports Fans – Is It Worth It?
The popularity of fan-based tokens in the esports industry has also grown in recent times, with token sales volumes often increasing by more than 250% month-over-month since January 2022.
Some seem to have considered tokens as an indirect means of betting on the success of these teams, although they were not designed for this purpose.
The tokens are also influenced by factors other than the on-field success of football teams, such as the regular ebbs and flows of the crypto markets and news events.
An example is the recent collapse of FTX which caused the price of CHZ to drop nearly 40% since reports of exchange liquidity issues and bankruptcy proceedings.
In May, smart contract platform Algorand became the first official blockchain-based sponsor for the FIFA World Cup, which is scheduled to end on December 18.