Spain and Argentina football fan tokens have recently experienced significant declines in value, despite both teams winning major tournaments. Many of the largest fan tokens are down more than 90% from their all-time highs.

One might expect a football fan token to rally if the team wins a major tournament. However, as Spain discovered after winning the Euro 2024 trophy, this isn’t always the case. In the run-up to the final, the Spain National Football Token (SNFT) surged to $0.039, driven by high hopes. Yet, three days later, it plummeted by 43.5% to $0.022.

Figures show that SNFT’s all-time high was $0.8633 in September 2022. Today, it has lost 97.4% of its value. This token was part of an official initiative by the Royal Spanish Football Federation, aiming to be one of the first national teams to launch a cryptocurrency. However, the financial harm to fans has been significant.

Other major football fan tokens have faced similar declines. Paris Saint-Germain (PSG) is currently valued at $2.83, down 95.4% from its peak of $61.23 in August 2021. FC Barcelona (BAR) has lost 97.5% of its value over the past three years, while Manchester City (CITY) has seen a 93.7% decline.

Football fan tokens have generally not proven to be a good investment for fans.

Argentina’s official fan token also suffered, despite winning the Copa América final against Colombia. The token rallied before the match but fell by nearly 50% within a week.

Football and Crypto

The relationship between crypto firms and football clubs has strengthened over recent years. During the bear market, there was a slowdown, but now exchanges are entering big-money partnerships to educate sports fans about crypto. Recently, Kraken became the “Official Crypto and Web3 Partner” for Tottenham Hotspur, with plans to feature their logo on the club’s kit.

Bivu Das, Kraken’s UK managing director, stated:

“In the UK, crypto already has mainstream name recognition. Our research shows that crypto is more popular than many traditional financial services products. Partnering with Tottenham is about taking this technology another step forward, and bridging knowledge gaps that hold some football fans back from getting involved in the crypto ecosystem.”

UK’s Stance on Fan Tokens

In October, British politicians suggested that football clubs should be prevented from offering fan tokens. Dame Caroline Dinenage, chair of the Culture, Media and Sport Committee, noted:

“In the world of sport, clubs are promoting volatile cryptoasset schemes to extract additional money from loyal supporters, often with promises of privileges and perks that fail to materialize.”

Fan groups have raised concerns about these digital assets, primarily because they offer limited engagement, such as voting on songs played after goals. Companies issuing fan tokens defended their position, with Socios claiming that fan token holders received over 24,000 matchday tickets and more than 1,000 items of merchandise last season.

For more updates on the latest in cryptocurrencies, investing, and finance, stay tuned to Global Crypto News.

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