As Argentina faced Saudi Arabia in the FIFA World Cup on Tuesday, the value of the Argentine Football Association’s crypto phantoken ARG suddenly plummeted, from around $7.20 (approximately Rs. 600) at the start of the match to a low of $4.96 (about €400). Argentina’s defeat was so heavy that many supporters decided to sell their tokens, which were produced by the crypto company Chiliz in official partnership with the Argentine Football Federation and launched on Chiliz’s exchange Socios. The price of ARG has risen marginally to about $5.68 (about Rs. 460) since the end of the competition.
After a shocking 2-1 loss for the Argentina national team, led by superstar Lionel Messi, the $ARG token plummeted more than 30 percent to $4.96 (about Rs. 400) on Tuesday night, according to CoinGecko. When the token was created in May 2021, ARG sold for about $4.30 (about Rs. 350).
The token, one of several digital crypto assets created by Socios.com in partnership with football teams on the Chiliz blockchain, gives buyers a voice in some sponsorship team decisions and access to rewards. For the uninitiated, ARG is a certain kind of Ethereum-compatible ERC-20 token that requires fans to first buy Chiliz’s CHZ token, which is down 17 percent over the past week before they can trade it for another token on Socios. The fan token can be purchased on a number of popular exchanges such as OKX, Huobi, and DigiFinex.
Over the past year, a significant number of the world’s biggest 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 fan tokens. The tokens have quickly become a new source of income for teams.
The tokens, while not representing ownership in teams, are a way for investors to bet on the success of their favorite team. The value of these fan tokens can fluctuate wildly in value and fans could lose money, especially as the wider crypto market faces the fallout from the financial collapse of crypto exchange FTX earlier this month.