Crypto:
30601
Bitcoin:
$58.527
% 1.13
BTC Dominance:
%53.3
% 0.09
Market Cap:
$2.13 T
% 0.20
Fear & Greed:
25 / 100
Bitcoin:
$ 58.527
BTC Dominance:
% 53.3
Market Cap:
$2.13 T

Sports Tokens Plunge Despite UEFA Championship Kickoff

Tokens

Starting its 2024 competition on June 15, the UEFA European Football Championship set off a frenzy of excitement among football supporters all across. Given this once-every-four-year event, one would expect sports-related crypto tokens—especially those connected to football—to perform really brilliantly at face value. Actually, the truth has been somewhat the reverse.

Market Performance of Sports Tokens

One of the worst-performing baskets of assets available this week is the Sports Token Index, which monitors supporter tokens from prominent European football teams.

Since the tournament started on June 15, the index has drastically fallen; at the time of writing, these tokens‘ total market valuation had dropped by about 12.8%. BTC’s price dropped 3% within the same period; ETH’s cost has risen about 1%.

One can partially explain this dismal performance by considering the general state of the market. However, the sports token index has underperformed three times worse to the downside than the drawdowns BTC has gone through. This clear disparity draws attention to the special fragility of these fan tokens in the present market collapse.

Implications for Fan Tokens’ Future

It is noteworthy that the supporter tokens in this index reflect particular football teams instead of international athletic federations. Still, one would have anticipated these tokens displaying some relative strength during a big football event. After all, football fans have prime time to unite around their preferred teams at the UEFA European Championship, which should theoretically increase the value of connected fan tokens.

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That hasn’t been the case, though. The expected increase from the event hasn’t shown up. One should give some thought to the wider consequences of this trend.

Fan tokens‘ general usefulness and investment potential are called into doubt if big athletic events cannot consistently raise the value of associated crypto assets. Issuers and investors should review their plans and expectations as these tokens fight for more and more relevance.

 

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