On Tuesday, as Argentina played Saudi Arabia in the FIFA World Cup, the price of the crypto fan token ARG went down. According to data from CoinGecko, it went from around $7.20 at the start of the game to a low of $4.96.
Since the conclusion of the match, the price of ARG has corrected slightly and is currently around $5.36. In the past twenty-four hours, the coin has lost 18%. Four days ago, though, ARG reached a new all-time high of $9.19, representing a 17% increase over the past month.
However, Argentina’s loss was so devastating that many fans sold their tokens, which were manufactured by the cryptocurrency business Chiliz and launched on the Socios exchange in an official collaboration with the Argentine Football Association.
ARG is an ERC-20 token that is interoperable with Ethereum. To acquire any token on Socios, supporters must first purchase Chiliz’s CHZ token (which is 33% less valuable than it was two weeks ago) and then exchange it for their desired token. Fan tokens like as ARG do not bestow shareholder status or a portion of club ownership on their holders.
“The more tokens a fan holds, and the more they vote, the higher that fan’s rating, moving them upward through different reward tiers, until they have access to the biggest VIP benefits. doesn’t,” reads the Chili’s website.
It is also likely that some supporters are utilizing tokens such as ARG to indirectly wager on whether a team will win or lose, with the expectation that the token’s value will grow after a victory.
The NFT market is turbulent as a result of Saudi Arabia’s victory and Argentina’s defeat. The Saudis, an ethereum NFT collection that debuted in July and has no relation to the football team, witnessed a modest rise in sales on Tuesday. The profile picture-style avatars appear to be a “derivative” of the Cryptopunks NFT that is unrelated.
After Saudi Arabia won, 52 NFTs from the collection were sold on OpenSea for an average of 0.2 ETH each, which is about $280. But it looks like this small increase won’t last long, as the minimum price of the collection on OpenSea has already dropped from its daily high of around 0.31 ETH to around 0.24 ETH. After Saudi Arabia won, sales have already slowed down a lot in just a few hours.
Even though a 1,200% increase in trading volume in 24 hours sounds like a lot, it is put into perspective by how few sales there were before the peak on Tuesday morning. Only 21.75 ETH, or about $24,000 worth, have been traded for the collection on the whole market. Gem Data says that at the time of this writing, OpenSea is the NFT marketplace with the most Saudi NFTs for sale (180).
NFT collections and cryptocurrencies named after real entities, whether official or not, often see volume or price surges when the entity is in the news, including Johnny Depp’s NFTs during his ex-wife Amber Heard’s widely publicized trial. Depp’s NFTs, for example, did not have sustained trading volume, and their bottom price and volume swiftly recovered to their pre-spike levels.