Spain’s fan token plunges after World Cup defeat to Morocco

SNFT loses $20m in market value in less than three months

Spanish flag                                 
The Spanish team’s defeat by Moroccohas seen its NFT plunge by 50%NFT - Photo:Shutterstock
                                

The fan token of the Spanish national football team plunged 50% in hours, after the country’s shock defeat by Morocco in the World Cup in Qatar.

Spain dominated possession but only had one shot on target during the match, which extended into extra time. After failing to score a single penalty in the subsequent shootout, the odds-on favourite was eliminated by the North African side. Morocco has never progressed into the the quarter-final stages in its World Cup history.

The SNFT collapsed from $0.09281 to $0.03856 in two hours, according to CoinGecko, wiping more than $1m off its market capitalisation.

After the defeat, the Spanish manager, Luis Enrique, told fans: “It could not be, we tried but it has not been enough. We’re sorry we didn’t give you joy… that’s football and life… onwards.”

The SNFT was launched just over a year ago,and its market capitalisation rose to an all-time high of $20.8m in the run-up to the tournament in Qatar. This figure stood at just $1m on Wednesday.

Although the size ofandspeed of SNFT’s decline can be partly attributed to Spain’s surprise exit, it is also consistent with the direction of travel of the vast majority of football fan tokens in recent weeks.

National fan tokens slide as pre-World Cup enthusiasm wanes

The fan tokens of Portugal and Argentina have fallen by 26% and 25% in the past week, respectively, despite both teams having qualified for the next round of the competition, .

In the past three weeks the market capitalisations of Portugal and Argentina’s tokens have fallen by $16m and $25m respectively. 

Proponents of sport team tokens have argued that they enhance the fan experience, offering supporters exclusive rewards and opportunities and giving them the chance to vote on the nature of upcoming fan events.

Critics have questioned whether tokens actually grant holders meaningful rights and votes and argued that they unnecessarily commodify the fan experience. 

As only one team is destined to lift the World Cup trophy, the vast majority of fans will be left dejected, with fan token valuations potentially set to decline even further.

Further reading

The material provided on this website is for information purposes only and should not be regarded as investment research or investment advice. Any opinion that may be provided on this page is a subjective point of view of the author and does not constitute a recommendation by Currency Com or its partners. We do not make any endorsements or warranty on the accuracy or completeness of the information that is provided on this page. By relying on the information on this page, you acknowledge that you are acting knowingly and independently and that you accept all the risks involved.
iPhone Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image