The Spain National Fan Token Experiences a 20% Dip Following Spain’s Victory at UEFA Euro 2024

After Spain won the UEFA Euro 2024 on Sunday after beating England 2-1, Spain National Fan Token (SNFT) — the official cryptocurrency of the Spanish national team — went down in value by 20% in just one day.

This might seem strange, but it’s actually something that happens quite often in the world of these special kinds of money called cryptocurrencies. It’s known as “sell-the-fact” losses. This means that when something good happens, the price of the cryptocurrency goes down because people start selling it.

The UEFA Triumph and the SNFT Slide

Even though Spain’s soccer team won their fourth European Championship title, the SNFT didn’t do so well. Its value dropped to $0.024, which left people wondering why.

The SNFT was first introduced in 2021. It was created by the Royal Spanish Football Federation and a Turkish company called Bitci. The goal was to make the experience of being a fan more exciting and unique. But why did its value drop so suddenly?

The “Sell-the-Fact” Phenomenon

Well, researchers have noticed a pattern with these fan tokens. They usually go up in value before big tournaments and then go down afterward. People buy the tokens because they hear a rumor that something good might happen and then sell them after the fact. Before the UEFA Euro 2024 final, the SNFT went up by over 70%, reaching $0.03845. But after Spain won, its value went down a lot, with the SNFT’s market capitalization standing at a mere $565,000 at the time of the UEFA championship, per CoinGecko data.

Spain Fan Token (SNFT) Chart. Source: CoinGecko 

Some experts think a team’s performance doesn’t affect the value of its fan token. These tokens are usually very unpredictable. Even though they might do well on the first day they’re available to buy (sometimes going up as much as 150%), they usually don’t do as well as other cryptocurrencies like Bitcoin in the long run.

Interestingly, bigger tournaments like the Champions League seem to have an effect on fan tokens. Maybe it’s because more people watch these events, and they’re seen as being more important. However, smaller, local tournaments don’t have the same effect. So, even though Spain won the UEFA Euro 2024, it didn’t stop the SNFT from going down in value. It’s important to understand that each tournament can affect the value of the token in different ways.