Despite Spain’s exhilarating victory in the UEFA Euro 2024, the Spain National Fan Token (SNFT) has experienced a significant 20% decline over the past 24 hours.
Following Spain’s win against England in the UEFA finals, securing a record fourth European Championship title, the SNFT token has seen its value drop by 20% to $0.024. At the time of writing, the token’s market capitalization stands at $565,000. In contrast, other major fan tokens, such as the Paris Saint-Germain Fan Token and the FC Barcelona Fan Token, have posted gains of 2% to 4%, buoyed by a renewed increase in Bitcoin’s price.
The SNFT token, launched in 2021 in collaboration with the Royal Spanish Football Federation and the Turkish blockchain platform Bitci, aims to boost fan engagement and provide unique experiences for sports enthusiasts and investors.
The recent decline in SNFT’s value likely reflects a “sell-the-fact” reaction following Spain’s victory. In the three days leading up to the final, the token’s price surged over 70% to $0.03845. This pattern aligns with historical trends in the fan token market, where prices tend to rise in anticipation of a major event and fall after the event concludes. This “buy the rumor, sell the fact” phenomenon was also observed during the 2022 FIFA World Cup.
Research on the impact of soccer tournaments on fan token valuations presents mixed findings. A 2022 study by Mieszko Mazur and Miguel Vega examined the correlation between team performance and fan token prices, concluding that on-field success does not significantly affect fan token valuations. The study also noted the inherent volatility of fan tokens, which tend to underperform major cryptocurrency benchmarks such as Bitcoin and decentralized finance (DeFi) coins over the long term.
Conversely, other research indicates that major tournaments like the Champions League can influence fan token prices due to the larger audience and higher prestige compared to regional leagues.
In summary, while Spain celebrates its UEFA Euro 2024 victory, the associated fan token has taken a hit, illustrating the volatile nature of the fan token market and the complex interplay between sports performance and cryptocurrency valuations.
