The Spanish national team celebrated their UEFA Euro 2024 football championship victory, but the national team's official cryptocurrency, the Spanish National Fan Token (SNFT), did not share the excitement.
Spain National Fan Token Drops 20% After UEFA Euro 2024 Win
Despite Spain clinching its fourth European Championship title by beating England in the final on Sunday, SNFT has fallen 20% to $0.024 in the last 24 hours. Its market cap was $565,000 as of press time, according to Coingecko.
While prominent fan tokens such as Paris Saint-Germain Fan and FC Barcelona Fan tokens are trading 2% to 4% higher, driven by a new rise in Bitcoin's price, SNFT's decline reflects a general market trend.
The recent price drop likely represents a “sell the truth” reaction. The price of SNFT had increased by over 70% in the three days before 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 and highlighted their volatility.
The study noted that fan tokens can generate high returns on the first day of trading, but tend to underperform major crypto benchmarks such as Bitcoin (BTC) and decentralized finance (DeFi) coins in the long run.
*This is not investment advice.
