Spain National Fan Token Slides 20% After UEFA Euro 2024 Win

As a seasoned crypto investor with a particular interest in fan tokens, I have witnessed the ups and downs of these digital assets in relation to major soccer tournaments. The recent 20% drop in Spain National Fan token (SNFT) price following Spain’s UEFA championship victory is a classic case of “buy the rumor, sell the fact.”

Spain is elated about winning the UEFA 2024 soccer championship, but the Spain National Fan token (SNFT) of the national team shows little excitement.

As an analyst, I would put it this way: On Sunday, I had the privilege of witnessing Spain’s triumphant victory over England in the UEFA tournament finals. With this win, Spain secured its fourth European Championship title, setting a new record. Unfortunately for England, their wait for a major tournament success stretches on for yet another decade.

Despite a 20% decrease in value for the SNFT token over the last 24 hours, now priced at $0.024, and having a market capitalization of $565,000 as reported by Coingecko, fan tokens such as those for Paris Saint-Germain and FC Barcelona saw gains of 2% to 4%. This uptick coincided with an upward trend in the price of bitcoin, the market leader.

In 2021, the national team introduced the Sports Fan Token (SNFT) in collaboration with the Real Federación Española de Fútbol (RFEF) and Turkish blockchain platform Bitci. The objective of this token is to boost fan interaction and provide exclusive perks for football aficionados and investors.

The price decrease of SNFT could be classified as a “realized loss from selling the facts.” In the three days prior to the event, SNFT’s price skyrocketed by approximately 70% to reach $0.03845. Historically, fan tokens exhibit heightened anticipatory growth before tournaments and subsequent price drops following the events. This pattern, referred to as “buy the rumor, sell the fact,” was evident in the fan token market during the FIFA World Cup of 2022.

Researchers hold varying opinions regarding the effect of soccer tournaments on the market worth of fan tokens.

In a 2022 research publication authored by Mieszko Mazur and Miguel Vega, the relationship between fan tokens and sports team performance was investigated. The findings revealed that the performance of a team does not impact the value of fan tokens during any tournament. Additionally, these digital assets were found to exhibit high levels of volatility.

In contrast, research uncovered that fan tokens are more influenced by larger tournaments such as the Champions League. This is likely due to their extensive reach and esteemed status in comparison to local leagues.