Messi VS Ronaldo at the World Coin Championship
2022.11.29 01:30
Messi VS Ronaldo at the World Coin Championship
Budrigannews.com – In Qatar’s desert, the market for fan tokens, a volatile mix of crypto and sports, is getting hotter.
The soccer World Cup, which started on Nov. 20, has stoked interest in this subset of cryptocurrencies that are typically associated with sports teams like Brazil or Barcelona.
According to Kaiko, a Paris-based crypto data company, these tokens’ average daily trading volumes increased to around $300 million in November from $32 million the month before.
Research analyst Dessislava Aubert stated, “So we have 10-fold increase in volume, which is huge for these tokens.”
These tokens give some buyers the chance to interact with their team and receive benefits like the chance to win prizes and vote on songs played during games.Others see the tradeable coins as a fresh way to invest.
However, it takes a brave investor to attempt to deduce any logical connection between fluctuating coin prices and actual events.
Following Argentina’s shocking loss to Saudi Arabia in their first World Cup game, the token of the team fell 25% to $5.26.However, it has decreased by an additional 22% since the fans were relieved by the team’s subsequent victory over Mexico.
In the 10 days leading up to the tournament, Portugal’s coin rose 119% to $7. However, despite Portugal’s unbeaten record and position at the top of its group heading into its matchup with Uruguay on Monday, which it won to advance to the knockout stage, the coin lost nearly half of its value.
In a similar vein, Arsenal’s token has dropped 12.5 percent to $1.68 since the beginning of the season, despite their glittering rise to the top of the English Premier League.
According to researchers, the volatile assets were wilting as investors shunned risk, which is partly to blame for the price drops.
According to data from CoinGecko, the overall market cap for fan coins rose to $401 million on the opening weekend of the World Cup from $256 million approximately ten days earlier. However, it has since fallen below $300 million.
People shouldn’t buy the coins solely for the purpose of making money, according to Siddharth Jaiswal, founder and CEO of Sportzchain, which primarily issues tokens for the Asian market.
“The cherry on the cake is that it’s a tool that can be traded easily in the future and is available on the blockchain,” he added. “There is a financial connotation attached to it.”
“However, the first impression should never be that you’re buying the fan token for profit.”
BROODING BITCOIN Socios, which Messi promotes, is the most significant player in this segment of the cryptocurrency market.It describes purchasing such tokens as joining a loyalty program with exclusive benefits and prizes, making it easier to trade the majority of fan coins.
The Portuguese and Argentinean national teams, as well as Paris Saint-Germain, Manchester City, Inter Milan, and Atletico Madrid, have all launched tokens supported by Socios. These tokens have market caps ranging from approximately $7 million to $21 million.
Chilliz, a Socios-linked token that users purchase in order to trade with their team tokens, experienced a seven-month high in early November prior to the World Cup; however, trading volumes have since decreased by forty percent from that peak.
According to Kaiko data, the Korean won dominates the breakdown of trading in the Chilliz token by fiat currency. At the beginning of November, its total fiat volume exceeded 87 percent, followed by
The cryptocurrency market is reeling from the collapse of major exchange FTX earlier this month, so the expansion of fan tokens comes at a turbulent time.is hovering around $16,245—close to two-year lows.
Fan coins, which some issuers claim fall under the utility token category, continue to be a grey area despite the fact that the FTX fiasco has raised serious concerns regarding the absence of regulation in digital assets.
According to GlobalBlock analyst Marcus Sotiriou, “tokens which do not offer sufficient utility could face some regulatory scrutiny, because this would infer that the token is an investment into the club.”
“However, I do not think there will be regulatory issues if the token offers exclusive benefits and focuses on the utility it provides to its fans.”
Socios stated that it valued regulation as a means of gaining fans’ trust and transparency.
Two advertisements about fan tokens posted on Arsenal’s Facebook page and website (NASDAQ:) were upheld in August by Britain’s advertising watchdog.that it thought were reckless and deceptive, despite the club’s denial of this.
According to digital assets platform Matrixport’s head of research, Markus Thielen, interest in these tokens among soccer fans may not last long.
“The companies and teams that are selling those tokens now need to offer more value on a regular basis, or users will quickly lose interest,”
