Spain National Fan Token Slides 20% After UEFA Euro 2024 Win
In the recent 24 hours it has been hit with a 20% decrease in its cost, After Spain’s UEFA Euro 2024 Championship WIN, The national fan token (SNFT) of guests. This trend seems to be similar to what is currently happening in the token of fans, in which top gainers are observed after major sports events.
Spain’s UEFA Euro 2024 Triumph
By scoring in the last minute of the game Torquemada el Matador ensured Spain with a record fourth European Championship. The last act on Sunday saw Spain pull off the trick and add another exhibition to their national record as a country of football legends. Poor British support who had won a basketball championship were not able to watch the game since they last held a major tournament in 1966.
Market Performance of SNFT
Convincing the readers of the Coingecko report, it is stated that the token went down by 20% to $0.024 in the last day. The market cap was sitting at $565,000 at that moment. The market has shown considerable interest every now and then with the winner to trade at 2% to 4% higher.
The Launch and Purpose of SNFT
The last year ago was the time when the SNFT token was released through a deal between the Real Spanish Football Federation and the Turkish cryptocurrency platform Bitci. The aim was to boost the relationship between fans and give investors of sport clubs the possibility of getting valuable exclusivities. Anyway, it loses a lot of money as far as all the fan tokens are concerned due to their high volatility.
Understanding the Price Drop
It’s more likely that SNFT’s value fell by 20% because of the “sell-the-fact” effect. Fan token prices often go up in anticipation of big events and then come down after them. Before the final, the SNFT token surged by as much as 70% to $0.03845 within a few days. During the FIFA World Cup 2022, the fan tokens demonstrated a similar pattern of anticipatory gains and then post-event slides.
Research on Fan Token Volatility
The research work has been conflicting as to the part played by soccer tournaments in the market value of fan tokens. A 2022 study by Mieszko Mazur and Miguel Vega showed that there was no direct connection between a team’s performance and the value of fan tokens. The study conducted by them revealed that fan tokens, which are volatile and have high initial returns, are most likely to be ignored as time goes by as they underperform in comparison to major cryptocurrency benchmarks such as Bitcoin and DeFi coins.
Another study, however, suggested that the greater the size of the tournament, such as the Champions League, the higher the impact on fan tokens in connection to their larger audience and greater prestige as compared to regional leagues. It then follows that the scale and the prestige of the tournament are among the factors that can determine the degree to which fan tokens will have their value go up or down.
