Cryptocurrencies of major soccer clubs disappoint after heyday - MUNDO APLI


viernes, 29 de abril de 2022

Cryptocurrencies of major soccer clubs disappoint after heyday


 Big Club Cryptocurrencies Disappoint

As soon as rumors began to circulate that soccer star Lionel Messi would be transferred from FC Barcelona to Paris Saint-Germain in August, Miguel Schweizer decided to buy the Parisian club's token (cryptocurrency), $PSG, on a hunch that the prices would skyrocket. And so it was, but he didn't keep the tokens for long.

He sold them a few days later, betting the rally would be short-lived. And he turned out to be right: prices were down 34% a week later and down 73% four months after it was issued.

Schweizer, 29, said he had never intended to keep them as a long-term investment. The CEO of Decrypto, a Buenos Aires-based digital wallet and exchange, added that they are investment opportunities.

For many hopeful fans, football club tokens have turned out to be a disappointment, with prices rapidly losing steam in a matter of days. Three years have passed since the tokens began to be listed on the main cryptocurrency exchanges, promising an alternative for clubs to obtain financing and for fans to be closer to their favorite teams.

Both options continue to fall short of expectations. Clubs that have issued tokens include Manchester City, SS Lazio, FC Porto, Santos FC, FC Barcelona, ​​AC Milan and Trabzonspor. Some, like FC Arsenal, have raised as much as $5.5 million through these types of tokens, though most transactions are closer to $2 million. That represents just a fraction of the expenses of these clubs.

Analysts warn that the demand for tokens quickly goes from euphoria to indifference. The main criticism they make is that these have few tangible benefits for fans. With the Juventus token, for example, fans can buy VIP tickets, while the PSG token was used to allow holders to vote on the design of the new team bus and the club's slogan.

The problem with today's tokens is that clubs aren't actively promoting them and their utility, explained Oliver Bell, CEO and co-founder of the XCAD Network, a company that issues tokens for content creators. He went on to argue that the people who buy them are not necessarily fans of the clubs; clarifying that the only buyers are cryptocurrency enthusiasts.

Meanwhile, the market remains tight. The market capitalization of these sports tokens amounts to US$491 million and their daily traded volume is US$241 million. The 10 largest fan tokens have an average daily volume of $13 million, representing 28% of the average daily traded volume of the 364 digital coins listed on Binance, according to data from CoinMarketCap and Coingecko.

The world's largest fan token by market cap, Manchester City's, has a market cap of US$56 million and daily traded volume is below US$15 million, according to CoinMarketCap Its price has lost 50 % of the value since it was first issued.

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