The value of the Argentine Football Association (ARG) Fan Token has dropped significantly as a result of Argentina’s shocking loss to Saudi Arabia in the first match of the FIFA World Cup by a score of 2-1. This is in line with the expectations of the country’s devoted soccer fans, who believed that Argentina would win their first game.
The information provided by Coingecko indicates that the price of an ARG token before the start of the match was $7.21.
However, as a result of the poor performance of the football team led by Lionel Messi, the price of the token fell by 31% to reach $4.96 at the end of the match. It then went up to $5.22 at the time of this writing, but had already hit $5.22 by the time this was written.
On the other hand, the floor price of “The Saudis”, a Saudi Arabia-themed collection of non-fungible tokens (NFTs) unrelated to the soccer team, increased 52.6% in the same period of time, going from 0.196 Ether (ETH) to 0.3 Ether before stabilizing at a price of 0.225 Ether, which is worth about $250. “The Saudis” has no connection to the Saudi Arabian national football team.
On the Socios platform, which is a blockchain-powered fan engagement platform, CHZ operates as a native ERC-20 token. Partners is one of the most prominent factors behind the recent growth in the number of sports fan tokens.
Although the tokens do not represent ownership of the teams, purchasers of the tokens have access to certain prizes and the opportunity to vote on certain decisions made by the teams that sponsor them. This is the case even if the tokens do not reflect ownership of the teams.
In the recent past, there has also been an increase in the demand for fan-based tokens in the athletics business.
Since January 2022, the volume of token sales has increased on average more than 250% month on month. This growth dates back to the beginning of the year.
Although they were not designed to be used in this way, it seems that some people have understood tokens as a way to indirectly bet on the success of the teams that use them.
The value of the tokens can also be affected by events and trends that are not related to the success of specific soccer teams. For example, the natural ebb and flow of cryptocurrency markets, as well as breaking news, can have an effect on the value of tokens.
In May, the blockchain-based decentralized smart contract platform Algorand became the first official sponsor of the FIFA World Cup to run on blockchain technology.
The final round of the competition is scheduled for December 18 of this year.