The official token of the Argentina national team falls for losing against Saudi Arabia in the 2022 World Cup
While Argentina faced Saudi Arabia in the FIFA World Cup on Tuesday, the value of the Argentine Football Association's cryptocurrency token, ARG, fell sharply for those who had invested in it. It dropped from around $7,20 at the start of the match to a low of $4,96.
Argentina's defeat was so severe that many fans decided to sell their tokens. these tokens were produced by the cryptocurrency company Chiliz in official collaboration with the Argentine Football Association and launched on the Chiliz exchange, Socios. The ARG price has risen to about $5,68 since the match ended, but it is an indicator of the volatility of the value of certain tokens whose value depends on the success or failure of certain bodies and not a central bank.
You can lose money by investing in tokens of a national soccer team
After the Argentine national team's 2-1 loss to the Saudi Arabian national team, the $ARG token fell more than 30 percent to $4,96 on Tuesday night, according to CoinGecko. When the token was created in May 2021, ARG was selling for around $4,30, so it's possible to have a more valuable token than when you bought it, but it doesn't take away from losing value from losing a match.
The token, one of several digital crypto assets created on the Chiliz blockchain by Socios.com in partnership with football clubs, gives buyers a vote on certain decisions made by sponsoring clubs and access to rewards. ARG is a specific type of Ethereum-compatible ERC-20 token that requires fans to first purchase Chiliz's CHZ token, which has fallen 17% in the last week, before they can exchange it for any other token on Socios. The fan token can be purchased on several exchanges, including OKX, Huobi, and DigiFinex.
Several major football clubs, such as FC Barcelona , Paris Saint-Germain FC, and Manchester City FC, as well as some national teams, have partnered with Socios.com and Bitci to create these fan tokens. This provides a new source of revenue for the clubs. However, their long-term profitability, sustainability, and whether they are purchased by fans seeking the benefits or by speculators remain to be seen.
Although they don't represent ownership of the teams, these tokens are sold as a way for investors to bet on the success of their favorite team . The value of these fan tokens can fluctuate significantly, and fans can lose money. In addition to the volatility inherent in the cryptocurrency market, which affects conventional tokens, these tokens are also affected by the loss of a single match. It's true that this is a World Cup match in Qatar 2022, not a friendly. But that doesn't change the fact that a considerable portion of their value can be lost due to the outcome of a single game.
