A “pump and dump” at the World Cup? The price of the Argentina Football Association Fan Token (ARG) had soared at the end of the World Cup. But it has completely fallen since yesterday. What to remember
Argentina’s token drops after World Cup win
As we explained earlier this month, “fan tokens” – cryptocurrencies based on fan communities, especially football fans – have struggled to gain traction so far in the 2022 World Cup. But Argentina’s progress in the competition had nevertheless ended up propelling the price of the Argentina Football Association Fan Token (ARG) at the end of the competition.
A high of $7.4 was reached two days before the final match, which was still not an all-time high. This had been surpassed in November, at over 9 dollars. However, it seems that investors are not betting on the ARG’s further development.
The price has indeed fallen sharply since yesterday: it has lost -55% in the space of an hour and a half :
ARG share price reacts negatively to World Cup victory
It is noted that the trend was initiated in the days immediately preceding the match. So investors probably thought that the ARG price would not go higher, win or not.
Fan tokens, not so much for the World Cup
What can we learn from all this? First of all, we note that the World Cup was not the cornucopia so much expected for the fans tokens of national football teams. If we look at their respective progress over the month, the outlook is particularly clear:
- Argentina’s fan token (ARG) is down 67% over thirty days;
- Portugal’s (POR) fan token is down 79%;
- Spain’s fan token (SNFT) is down -92%;
- And Brazil’s (BFT) fan token is down -94% for the month.
Fan-carried cryptocurrencies are therefore not only showing high volatility, but they have also received comparatively little boost from the World Cup. It is therefore an area that will likely still need to mature.
