TL;DR
- The Spanish National Team Fan Token (SNFT) fell by 20.10% over the past day, settling at $0.02425.
- SNFT’s decline reflects the “buy the rumor, sell the news” phenomenon following Spain’s victory at Euro 2024.
- Fan tokens are volatile and their performance is not always correlated with team performance.
Spain are celebrating their recent victory at Euro 2024 with euphoria, after beating England in a thrilling final that gave them their fourth European title.
However, the Spain National Fan Token (SNFT), the official token of the Spanish national team, has not followed the same path to glory.
Over the past 24 hours, SNFT has seen a notable drop of 20.10% to $0.02425, according to data provided by CoinMarketCap.
This decline in token value comes despite the team’s success in the tournament, evidencing a characteristic behavior in the fan token market known as “buy the rumor, sell the news.”
SNFT was launched in 2021 in collaboration with the Royal Spanish Football Federation and the Turkish blockchain platform Bitci, with the aim of strengthening the connection between fans and the team, as well as offering exclusive experiences to supporters and investors.
However, the recent 20.10% drop likely reflects a trend seen in fan tokens during major sporting events, where prices tend to rise in anticipation and then fall once the event concludes.
This phenomenon had already been observed previously during the 2022 FIFA World Cup.
In the days leading up to the Euro final, the value of SNFT increased by more than 70%, reaching $0.03845, clearly showing the pattern of anticipatory gains followed by subsequent losses.
Studies conducted during the 2022 World Cup confirmed this trend in the behavior of the fan token market.
However, researchers have not reached a consensus on the real impact of football tournaments on the value of these tokens.
Impact of Tournaments on the Value of Tokens such as the Spain National Fan Token
A 2022 study by Mieszko Mazur and Miguel Vega indicated that team performance does not have a significant impact on the value of fan tokens, noting that they are inherently volatile.
Although a high return of 150% was observed on the first day of trading, in the long run, fan tokens tend to underperform compared to other cryptocurrency benchmarks such as Bitcoin (BTC) and decentralized finance (DeFi) coins.
Another study suggests that more prestigious tournaments, such as the Champions League, may have a greater influence on token value due to the larger audience and prestige associated with these events, in contrast to regional leagues.
Despite the recent drop in SNFT, fan tokens for teams such as Paris Saint-Germain and FC Barcelona saw increases of between 2% and 4%, also reflecting an overall rise in the price of Bitcoin.
This market behavior underlines the volatility and speculative nature of fan tokens, which respond not only to sporting events but also to broader trends in the cryptocurrency market.
As fans and investors continue to explore these types of assets, it is crucial to consider both sports performance and cryptocurrency market dynamics to fully understand the fluctuations in the value of fan tokens.
