Fifa World Cup 2022: Crypto Crash Affects Fan Tokens Despite Messi, Ronaldo Heroics
Fifa World Cup 2022 Fan Token news: As the world cup heat intensifies, fan tokens that are linked to national football teams have seen a lot of trading activity in recent days. These football fan tokens have seen a tenfold increase in trading volumes according to chain data. These cryptocurrencies are however following a pattern that shows negative sentiment around fan token matches. The tournament is currently in its group stage and will end with the final match scheduled for December 17.
Also read: FIFA World Cup 2022: Top Football Fan Tokens to Buy in December
Ronaldo Linked Portugal Fan Token Better Than Messi Argentine Fan Token
After the shock loss to Saudi Arabia by Messi, the Argentine Football Association Fan Token(ARG) has been in steady decline. The same was true following Argentina’s win against Mexico. ARG prices fell 25% after the defeat to Saudi Arabia and 22% after the Mexico victory. The Portugal National Team Fan Token, (POR), rose as high as 119% in just 10 days before the tournament. Despite an unbeaten streak, the currency lost nearly 50% after the world cup started.
The recent crypto price crash could be responsible for the drop in fan token prices. The market is currently in a difficult position to recover after the bankruptcy of BlockFi and FTX. Experts claim that the volume of football fan tokens increased by 10 times. Kaiko, a crypto data company, stated that the average daily trading volume for the tokens rose from $32 million last month to $300 million in November.
The World Cup Curse on Markets
Research suggests that the World Cup has had a negative effect on traditional financial markets as well as the crypto market. It was found that the crypto market did poorly during the 2014, 2018 & 2022 World Cups. It was also discovered that fan tokens were dropped before the world cup began.
Also read: Portugal ($POR) VS Argentina ($ARG) Who would win?
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