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Sports Fan Tokens Rally Ahead of FIFA World Cup, Defying Crypto Market Gloom

Socios.com’s CHZ jumped 11% in a day, while fan tokens of national soccer teams of Portugal and Argentina are up 50% and 28%, respectively, amid mounting anticipation for the soccer World Cup.

By Krisztian Sandor
AccessTimeIconNov 18, 2022 at 8:35 p.m. UTC
Updated Nov 22, 2022 at 5:12 p.m. UTC
The 2022 World Cup begins Sunday in Qatar. (David Ramos/Getty Images)
The 2022 World Cup begins Sunday in Qatar. (David Ramos/Getty Images)
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Through the doom and gloom of FTX-stricken crypto markets, sports fan tokens are basking in a fresh wave of hype ahead of the FIFA World Cup 2022, which starts Sunday.

The native token of the Chiliz blockchain (CHZ), which powers the largest sports fan token creator platform Socios.com, has surged 11% in the past 24 hours.

Fan tokens for the national soccer teams of Portugal (POR) and Argentina (ARG), both major contenders to win the Cup, “will be the cherries on top during the World Cup,” the research team of crypto exchange Huobi wrote in a report Thursday.

POR has rallied 15% over the past 24 hours and is up 50% during the previous week, while ARG has pocketed a 10% daily and 28% weekly gain, according to FanMarketCap, a fan token price tracker.

The total market capitalization of fan tokens increased 11% in the last 24 hours to $399 million, data by CoinGecko shows.

CHZ, the native token of Chiliz, outperformed bitcoin (BTC) and the CoinDesk Market Index (CMI) in the past seven days. (CoinDesk Research)
CHZ, the native token of Chiliz, outperformed bitcoin (BTC) and the CoinDesk Market Index (CMI) in the past seven days. (CoinDesk Research)

Fan tokens are cryptocurrencies that represent membership to a community, for example a sports team’s fan base. Token holders can express their support to a team, while they receive specific perks, including game tickets or even some level of participation in a sports club’s decision-making.

The rally precedes the kickoff of soccer’s most important event, the quadrennial World Cup on Sunday in Qatar. The event will conclude Dec. 18 with the crowning of a world champion from a field of 32 national teams, including soccer powerhouses Brazil, Belgium and Germany.

Read more: Web3 Is Heading to the World Cup

Sports fan tokens are outperforming the broader crypto market, which is reeling from the bankruptcy protection filing of Sam Bankman-Fried’s crypto empire, including FTX and high-profile trading firm Alameda. FTX has been deeply embedded in the sports world, buying naming rights of stadiums and securing sponsorship deals.

The CoinDesk Market Index (CMI), which tracks the price of a weighted basket of 168 cryptocurrencies, has traded flat in the past 24 hours and is down 2% through the week.

The fan token asset class may lose steam after the World Cup 2022, resulting in lower prices and trading volumes as the hype dies down, according to Huobi’s report.

Read more: Binance Puts Ronaldo NFTs in Spotlight With First-Ever Global Ad Campaign

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CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Krisztian Sandor
Krisztian Sandor

Krisztian Sandor is a reporter on the U.S. markets team focusing on stablecoins and institutional investment. He holds BTC and ETH.

Follow @sndr_krisztian on Twitter

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