Despite an ongoing bear market, football fan tokens are still performing in the ongoing crypto bear market, which has affected a large part of the scene. These tokens have been somewhat criticised by fans of certain football teams, but now they are proving their worth after seeing 200% gains in the last 14 days.
200% Gains in a Bear Market
In the past fortnight, amidst the latest crypto crash, football fan tokens have provided investors with some form of profit as many of the trending tokens have seen 200% increases in this time period.
Analysts from TradingPedia studied the market prices and volume recently. Particularly, they looked at the Santos FC Fan Token (SANTOS), which registered over 220% gains. One day last week saw the token have $330 million in volume. It reached a soaring price of over $5 too.
TradingPedia noted that these tokens did go down as Bitcoin did a couple of weeks ago, but it was the bounceback in the following few days that has seen them get this insane increase. Clearly, this is a similar pattern to other fan tokens.
To explain the gains, Brian McColl, an analyst at TradingPedia said: “This is actually somewhat expected in such a crash. In this scenario, some investors refrain from closing the positions they hold by selling their cryptocurrency low for fiat. This would mean they incur large losses. Rather than that, they would try hard to find an alternative crypto asset, that may be higher-risk but still offers them good returns while the overall crypto market is unstable and trying to consolidate.”
About Football Fan Tokens
Fan tokens as a concept are fairly new, and overall, they have been dominated by football teams. Nine out of the top ten spots (based on market cap) for sports fan tokens are football clubs. Eight of those nine are European, with the one other being the Brazillian club, Santos FC. Outwith these nine, the only other in the top ten is the Alpine F1 team. In fact, they lead the table, taking the number one spot.
To clarify, a fan token is a digital asset created on the blockchain. It grants its owner access to a service that sports organisations provide to their fans through various platforms. The industry leader is Socios.
Some of Socios’ partners include AC Milan, Arsenal, Manchester City, Barcelona, Inter Milan, and more. You can see a full list here. As well as this, Lionel Messi partnered with the platform. To get the tokens, you buy the Chilliz cryptocurrency and exchange it for a fan token of any of their teams. With these tokens, fans can vote on various club matters.
The platform has been subject to some criticism from certain “football purists” and other organisations. The Advertising Standards Agency ruled against the way Arsenal advertised their scheme for taking advantage of customer inexperience in managing crypto assets. Beyond this, many fans of partner clubs have opposed Socios. They look at it as another way for clubs to get supporters to spend their money.
Reposted from: nftevening.com