Home
News
- 1 The study by CoinLedger examines the price movements of soccer club tokens.
- 2 Bologna, Dinamo Zagreb, and Everton are among the top-performing fan coins.
- 3 PSG, Napoli, and Rangers suffered losses between 34-47%.
- 4 Team performance and fan engagement influence token value.
Amid the turbulent broader crypto markets in 2023, one burgeoning asset class stands out for extreme boom and bust swings – sports fan tokens. A crypto tax provider CoinLedger analysis uncovered substantial gains and steep drops across different soccer clubs’ niche tokens over the past year.
While standout successes like Italy’s Bologna FC underscore the potential for substantial gains, with an impressive 173% return, the cautionary narrative unfolds with Scottish team Rangers, whose token witnessed a precipitous drop of nearly 50%. This dichotomy serves as a stark warning, emphasizing the inherent volatility within sports fan tokens.
Big Winners
CoinLedger’s study examined fan token price action by pretending to invest $100 each on January 1st, 2023, and tracking performance into the new year.
The runaway leading gainer was modest Italian club Bologna FC 1909, whose $BFC token surged from $0.24 to $0.66 for a stellar 174% profit, exceeding Bitcoin’s 18% yearly gain.
Croatia’s GNK Dinamo Zagreb posted a 116% upside as the $DSG token climbed from $0.22 to $0.48 despite middling league results. Meanwhile, English underdog Everton witnessed a 114% token jump to $0.91 as its Premier League fortunes finally improved later in 2023.
Notable Losers
Conversely, the analysis uncovered substantial drops from several significant clubs as the risky assets whipsawed investors.
Scottish legacy franchise Rangers endured brutal attrition, seeing its $RFT token plummet 47% from $0.02 to $0.008. Paris Saint-Germain, representing Ligue 1, suffered nearly as severely, with its $PSG coins plunging 40% from lofty heights of $5.42 to end 2023 at $3.28.
Italian fan favorite Napoli recorded a 35% hemorrhage in its $NAP token, sliding below $2.60, while Spanish giant Barcelona’s $BAR equally sank 35% to $2.29.
Influencing Factors
Researchers found crypto fan tokens do not strictly follow teams’ on-pitch results. Market dynamics and niche demand from engaged fan bases also weigh on valuations.
Clubs nurturing active communities through token rewards and exclusive benefits saw prices reflect optimism in tandem with performance — like Bologna FC.
But inconsistencies emerged, like Rangers’ losing token missing their Scottish league title. Meanwhile, Everton supporters stayed loyal despite initial 2023 Premier League struggles.
Broader regulatory and market conditions also permeate pricing with bullish sentiment luring general crypto investors. Yet dedicated fans may counter-imposed volatility by leveraging voting rights or promotions.
Conclusion
CoinLedger’s probing inspection of 2023 crypto fan token movements illuminates substantial profits and losses from betting on niche soccer assets.
While success cases like Bologna FC highlight the connective power between teams and supporters, extreme downward swings for holders of Paris Saint-Germain or Rangers coins underline risks.
Delving deeper, complex factors around regulation, speculation, and utility weigh on performance beyond chasing wins. As crypto permeates sports, grasping these nuances remains key for fans contemplating token adoption.
Steefan George is a crypto and blockchain enthusiast, with a remarkable grasp on market and technology. Having a graduate degree in computer science and an MBA in BFSI, he is an excellent technology writer at The Coin Republic. He is passionate about getting a billion of the human population onto Web3. His principle is to write like “explaining to a 6-year old”, so that a layman can learn the potential of, and get benefitted from this revolutionary technology.
