Surprisingly, following their victory in the just concluded Euro 2024 in Germany against England, the Spain National Fan Token (SNFT) has dropped.
On Sunday, Spain emerged as the most recent European champion by defeating England in the recently concluded UEFA tournament. Nevertheless, the Spain National Fan token (SNFT), the official cryptocurrency of the national team, has yet to respond favorably to the most recent development, despite the nation still reveling in the joy of securing a record fourth European Championship title. This is somewhat unexpected.
CoinMarketCap data shows that the SNFT token has decreased by 23.21% to $0.02481 in the past 24 hours as of the publication. In the same period, its market capitalization reduced by the same percentage, reaching slightly above $568,000.
Despite a market-wide recovery, the SNFT token experiences a decline
In the interim, the SNFT token is a unique instance that contradicts a persistent trend in the fan token sector. To provide context, the blockchain platform Bitci witnessed the trading of prominent supporter tokens, including the Paris Saint-Germain supporter and FC Barcelona Fan tokens. The token’s objective is to increase by 1.2%. Nevertheless, their increases may indicate a resurgence in Bitcoin’s popularity and momentum, prompting additional inquiries regarding the SNFT’s refusal to adjust its policies considering the team’s performance at the Euros.
To enhance the spectator experience and engagement, the Spanish national team implemented the SNFT token in 2021. The Royal Spanish Football Federation accomplished its objective by partnering with the Turkish blockchain platform Bitci, which was designed to appeal to sports enthusiasts and investors.
Currently, the most plausible explanation for the price decline of SNFT is what analysts refer to as a “sell the fact” loss. This is because the token experienced a 70% increase to $0.03845 just a few days before the final.
Before a sports tournament commences, it is common for fan tokens to experience substantial surges in value. As indicated by a research paper, these tokens may even preserve their advantages throughout the tournament. Nevertheless, a decline typically ensues after the tournament climaxes and the anxiety subsides. The study cited the 2022 FIFA World Cup as an example, asserting that the fan token market of that period was characterized by the same “buy the rumor, sell the fact” trend.
Performances on and off the field
In the interim, researchers are still pursuing a correlation between the market value of supporter tokens and the performances of the teams they represent during tournaments. Although some argue that the valuation of fan tokens is not influenced by team performance, others maintain that it is.
Spain and its football federation may continue to celebrate regardless of the situation. Nevertheless, the crypto-savvy community will anticipate a rapid resurgence in the SNFT token. That is, as they anticipate larger tournaments and encourage their team to continue providing them with pride.