Coinspeaker Spain’s Fan Token (SNFT) Takes Dive despite Euro 2024 Victory
Spain is the newest European champion after beating England on Sunday to become the winner of the just-concluded UEFA tournament. However, while the nation continues to bask in the euphoria of clinching a record fourth European Championship title, the national team’s official cryptocurrency, the Spain National Fan token (SNFT), has shown no positive reaction to the latest development, and surprisingly so.
As of publication, CoinMarketCap data revealed that the SNFT token has dropped by 23.21% to $0.02481 in the past 24 hours. Its market capitalization has also dropped the same percentage in the same period to a little above $568,000.
SNFT Token Slides amid Market-Wide Recovery
Meanwhile, it might be worth noting that the situation with the SNFT token is a rare one that negates an ongoing trend within the fan token space. For context, leading fan tokens like the Paris Saint-Germain Fan and FC Barcelona Fan tokens were seen trading on the blockchain platform Bitci. The token aims to be 1.2% higher. Their surges, however, may signal a renewed interest and upswing in Bitcoin, raising more questions as to why the SNFT has refused to budge accordingly. Moreover, in light of the performance that the team put up at the Euros.
The Spanish national team launched the SNFT token in 2021 as part of its bid to improve fan engagement and experience. By collaborating with the Turkish blockchain platform Bitci, the Royal Spanish Football Federation was able to achieve its goal, targeting both sports enthusiasts and investors alike.
As it appears, the closest explanation to SNFT’s price slide at this time is what analysts call a “sell the fact” loss. That is considering that the token surged past 70% to $0.03845, a few days before the final.
Typically, fan tokens have been found to experience massive gains before a sports tournament kicks off. According to a research paper, these tokens might even maintain the gains during the tournament. However, once the tournament climaxes and the anxiety dies down, a slide usually follows. The study drew an example from the FIFA World Cup of 2022, claiming that the same “buy the rumor, sell the fact” trend was observed in the fan token market at the time.
On and Off-Field Performances
Meanwhile, researchers continue to look for a correlation between the market value of fan tokens and the performances of teams that they represent during tournaments. While some are of the opinion that team performance does not affect fan token valuation, others believe that they do.
Whichever might be the case, Spain and its football federation can continue their celebrations for now. However, the crypto-savvy faithful will be hoping that the SNFT token will pick up soon again. That is, as they await bigger tournaments and back their team to keep making them proud.
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Spain’s Fan Token (SNFT) Takes Dive despite Euro 2024 Victory