Spain national team celebrated the UEFA Euro 2024 football championship victory, but the national team’s official crypto money unit of Spain National Fan Token (SNFT) did not share this excitement.
Spain National Fan Token Loses 20% Value After UEFA Euro 2024 Win
Despite Spain defeating England in the final on Sunday to claim their fourth European Championship title, SNFT has fallen 20% in the past 24 hours to $0.024. Its market value was $565,000 at press time, according to Coingecko.
While leading fan tokens like the Paris Saint-Germain Fan and FC Barcelona Fan tokens are trading 2% to 4% higher, driven by a recent surge in Bitcoin’s price, the SNFT decline reflects a general market trend.
The recent price drop likely represents a “sell the truth” response. The SNFT’s price had risen by over 70% in the three days leading up to the final, reaching $0.03845.
This “buy the rumor, sell the truth” phenomenon is typical in the fan token market, as observed during the 2022 FIFA World Cup.
Research on the market behavior of fan tokens is mixed. A 2022 paper by Mieszko Mazur and Miguel Vega found that team performance does not significantly impact fan token valuation, highlighting their volatility.
The study noted that fan tokens can deliver high returns on the first day of trading, but tend to underperform major crypto benchmarks like Bitcoin (BTC) and decentralized finance (DeFi) coins over the long term.
*This is not investment advice.
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