The World Cup and soccer tokens. What to expect from coins during the Mundial
Which venues have joined the sporting event, what's happening with national team coins, and which of the competition-related assets are the most attractive for investment
The FIFA World Cup in Qatar kicked off on November 20 and will run until December 18. The cryptocurrency community is actively participating in the event: platforms are sponsoring it, and cryptocurrency exchanges are adding new fan tokens of soccer teams and announcing promotions related to the mundial.
The championship is sponsored by Algorand Blockchain (ALGO), which will continue to help FIFA with developments related to digital assets after the event. The 2022 World Cup is also sponsored by Crypto com (CRO), a crypto platform whose users were able to attend matches and win official paraphernalia.
Cryptocurrency exchange Binance launched a promotion for fans called Binance Football Fever 2022, allowing them to win rewards during the Championship by completing tasks. The OKX platform launched the OKX Football Festival promotion on the occasion of the event, in which platform users can win participation in the NFT-airdrop.
Huobi raffled off tickets to the World Cup 2022 in October, Poloniex held the "Poloniex FIFA World Cup Carnival" with a prize pool of $100k. Platform MEXC launched a referral program that could win $4.5k, and Gate.io runs the Gate.io World Cup NFT Collection, with a pool of $10k and other prizes.
At the same time, amid the sporting frenzy, many championship-themed tokens and NFT collections have popped up online with unclear tokenomics and unknown developers. If you want to join the digital celebration of soccer, it is worth carefully studying the history of the project and its financial component.
Soccer teams' fan tokens
In September, in the run-up to the 2022 World Cup, crypto exchanges MEXC, Gate and OKX added tokens for teams from Spain, Brazil, Argentina and Portugal. The first two coins were issued on the Bitci platform, while the second two support the Socios and Chiliz platforms.
Argentina - Argentine Football Association Fan Token (ARG)
Despite the fact that the championship has just begun, Lionel Messi's team token has already seen a 24% drop in value after Argentina's 1-2 loss to Saudi Arabia.
The result of the match was unexpected, as the Saudi team was considered the outsider in the group. The coin has recovered slightly since then, rising 4.2% to $5.61. Argentina's next game is on November 26, with Mexico as their opponent.
Brazil - Brazil National Football Team Fan Token (BFT)
The token exchange rate at the beginning of the championship was about $1, but it fell by 10% on November 23 and fluctuates around $0.69. The Latin American team will play their first match on November 24th against the Serbian team.
Spain - Spain National Football Team Fan Token (SNFT)
The first game of the Spanish team will be held on November 23. Opponent will be a team from Costa Rica. The rate of SNFT token before the match is at $0.35 and shows a daily decline of 2.2%.
Portugal - Portugal National Team Fan Token (POR)
The cryptocurrency POR is worth about $4.92 on November 23, its exchange rate increased by 2.9% during the day. The team will play their first match against their rivals from Ghana on November 24.
France - France Fan Token (FRA)
The first game of the French team was held on November 22. The French defeated the national team of Australia with a score of 4-1. The token of the national team FRA grew by 147% to $0.0013. The next game of the team will be on November 26, the opponent will be Denmark.
Changing the function of the tokens
Despite the fact that fan tokens were designed to address utilitarian issues and enable loyal fans to become more involved in the life of the team, today these coins are not being used in the way the developers intended.
The paradox is that originally aimed at purely technical functions, the fan tokens have instead become something of a "stock" for the clubs
The price of most of these tokens turned out to be tied not to the value of their functions for the fan, but to the success and public reputation of the club, the expert explained. According to him, in this regard, the fan token market has turned into a sweepstakes, already compromised by the ability to manipulate the price regardless of the teams' actual successes.
If we look at the investment component of this segment, the platforms and blockchains that host such tokens look more interesting in the first place, rather than the fan tokens themselves
For example, strategically, it looks more far-sighted to buy a Chiliz (CHZ) conditional token than a coin from some promising sports club.
CHZ cryptocurrency was released back in the fall of 2018 on the Ethereum network as a management token for the fan-token ecosystem being created, and a year later a side-chain (Chiliz Chain) of the Ethereum network was created to reduce commissions, the analyst said. He explained that the project united most of the fan community around itself under the umbrella of Socios.com.
He explained that the project united around itself a large part of the community of fans under the umbrella of Socios.com.
Cryptocurrency Shiliz (CHZ) was quoted at $0.183 on November 23. Before the start of World Cup 2022 it was $0.26, but by the evening of November 22 it was down to $0.17. For the previous day the coin grew in price by 2.2%.
In addition to Chiliz and its Social.com platform, the Turkish Bitci platform is gaining momentum. It has already issued tokens for the soccer teams of Brazil, Peru and Spain, the Turkish basketball team and many other sports teams, mostly from Turkey and Spanish-speaking countries. The Bitcicoin platform token (BITCI) is worth about $0.003 and has fallen 2.2% in the past 24 hours.