The Spanish National Fans token (SNFT) has dropped 20% in the last 24 hours.
The losses may represent "semi-truth" losses following Spain's victory in the UEFA championship.
Spain is rejoicing in its 2024 UEFA football championship victory, but the national team's official cryptocurrency, the Spanish National Fans token (SNFT), is not in use.
On Sunday, Spain beat England in the final of the UEFA tournament, winning a record fourth European Championship as England's decades-long wait for a major tournament victory still continue.
However, the SNFT token is down 20% to $0.024 over the past 24 hours and has a market capitalization of $565,000 at press time, according to Coingecko. Meanwhile, leading fan tokens such as Paris Saint-Germain Fan and FC Barcelona Fan token traded 2% to 4% higher alongside a renewed surge in market-leading bitcoin.
The national team launched the SNFT token in 2021 in partnership with the Royal Spanish Football Federation and Turkish blockchain platform Bitci. The token aims to increase fan engagement and deliver privileged experiences to sports enthusiasts and investors.
SNFT's price decline may represent a "selling the truth" loss. The price increased by just over 70% to $0.03845 in the three days leading up to the final. According to a research article, fan tokens tend to gain before the tournament and slide after the event. The phenomenon known as âbuy the rumor, sell the factâ was observed in the fan token market during the 2022 FIFA World Cup.
That said, researchers have differing views on the impact of soccer tournaments on the market value of fan tokens.
A 2022 paper by Mieszko Mazur and Miguel Vega studied the correlation between fan tokens and field performance. The study found that team performance does not impact fan token valuations regardless of league, and it added that these tokens tend to be volatile.
âDespite achieving strong first-day trading returns of 150%, over the long term, the fan token underperformed major crypto benchmarks such as Bitcoin (BTC),â the study said. ) and decentralized finance (DeFi).
Meanwhile, another study found that larger tournaments such as the Champions League influence fan tokens due to the wider audience and high prestige of the tournament compared to regional tournaments.
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