Turkish investors betting on cryptocurrencies related to the Argentina team saw the value of this token plummet as the country lost to Saudi Arabia.
The soccer World Cup is also having an impact on the world of cryptocurrencies. In recent months, many Turkish investors have become interested in cryptocurrencies due to the devaluation of their currency, the Turkish lira, against the dollar.
But many are also football fans and have decided to rely on “Fan Tokens” from the Socios company. Concretely, these “fan tokens” allow fans to make decisions about the life of the clubs. Especially in times of global competition, the concept enjoys great popularity. This principle is a mixture of a cryptocurrency and an NFT (Non Fungible Token), the “fan tokens” can only be purchased with the Chiliz cryptocurrency. In connection with the World Cup, Socios issued tokens for two participating nations, Argentina and Portugal.
But tokens associated with the Argentine team, which gained popularity before global competition, lost value after a lost game.
“Losing Argentina has implications for crypto too – you wouldn’t believe it, but Argentina’s fan token, offered in partnership with Socios, plummeted by a quarter,” said a Bloomberg TV host, quoted on the athlete.
In fact, Argentina’s loss to Saudi Arabia prompted many fans to sell their chips. The token associated with the Argentine team has therefore been the subject of intense speculation by some traders. As a reminder, Argentine player Lionel Messi is also a Socios ambassador.
“The story begins in late October, when trading volume surged from a few hundred thousand dollars a day to millions, with traders bringing in and selling $ARG – the name of Argentina’s token – to predict a ‘pump’ at world cup prices,” reports the media.
The token associated with Argentina is not an isolated one, the one associated with the Portuguese team has also suffered the same fate. And the consequences were mainly felt by Turkish investors, as one of them explained the athlete.
Far from “glitter”
“It was a surprising glimpse into something far removed from the glamor (…) of the World Cup. The user explains that the fall in value of the Turkish lira against the dollar took place due to the political and economic crises. “Cryptocurrencies are very popular there,” the media emphasize.
For the media: “If that is true, there is a connection between the national teams of Argentina and Portugal, Messi, many top European clubs and every impoverished Turk who loses his life savings after being dragged through his connections to buy cryptocurrencies in the sport “whom he loves”.
For its part, Socios claims that its tokens are the result of “fan engagement” and not trader speculation.
“Fan tokens are not intended for financial investment. We place disclaimers in our ads to that effect,” said a spokesman. the athlete.