Nov 23, 2022 at 06:44The unexpected and striking victory of the Saudi Arabian national soccer team over the title-winning Argentine team has literally exploded the NFT marketplace Socios, created by Web3 developers Chiliz. Trading volumes for The Saudis collection skyrocketed 1,847% overnight, raising the average token price by about 60%.
Chronology of events
Chiliz works directly with dozens of well-known clubs in various sports that release all sorts of digital assets on the Socios platform for their fans around the world. All solutions here are built on its own blockchain, Chiliz Chain, which is a sidechain for Ethereum and runs on a high-speed consensus PoA.
Right now, the Saudi Arabian national soccer NFT cards (created on this platform) are ranked 17th in the ranking of popular NFT collections in the world, according to open statistics from CoinMarketCap. Before the game, these NFTs were selling for 0.196 ETH, but after the team’s victory prices soared 55%, to 0.3 ETH.
The brand new newsletter with insights, market analysis and daily opportunities.
Let’s grow together!
At the same time, upset Argentine fans dropped their team’s fan token by 30%. The Argentine Football Association fan token was trading at $7.21 at the start of the match but fell to $4.96 by the end of the game. As of now, the $ARG has rebounded slightly and is now trading at $5.48.
As noted by analysts at Delphi Digital, other fan soccer tokens have also lost a significant amount of capitalization. For example, the NFT token of the Brazilian team $BFT has lost 21% of its capitalization in the last three days, and the token of the Spanish team $SNFT has fallen by 31%. In other words, the price dynamics of some teams’ tokens have a mutual influence on other teams as well, which gives food for thought and forecasts for bookmakers.
Why is this case important?
This major soccer event takes place every four years and will be the first world championship for blockchain developers from Chilz. As yesterday’s events showed, fan tokens are almost not tied to the current situation in the cryptocurrency market, their rate and sales volume are determined only by the results of the matches.
At one time, investors were counting on a complete “detachment” of NFT from the cryptocurrency market in order to get a reliable protective asset against crypto winter. This case study fully confirms the workability of such tokenization, which relies on fans and betting. The same independent pegging can take place inside entertainment games, art or gambling based.
Such tokens are beneficial not only for fans and investors but also for the sports clubs themselves — fan tokens allow fans to be more involved with their favorite teams. For example, clubs and teams often let token holders vote on an issue in club policy, which creates a special interactive and friendly communication between the club and its fan community.
JUST IN: @TheSaudisNFT collection saw a 23.6% spike in floor price following the country's surprise 2-1 win against Argentina at the #FIFAWorldCup2022.
📈: https://t.co/zR0YclkjbC pic.twitter.com/UIlD00F53M
— CoinGecko (@coingecko) November 22, 2022
How can I make money on this?
Sport-based NFTs are ideal for those who already understand sports or are involved in fan movements. Buying such club NFTs is not only a way to invest in your favorite team or club, but also a good way to get rid of middlemen in the betting market.
Why is it potentially a good way to make money? This sector of NFT is still little-known and undervalued, weakly dependent on the general depressed atmosphere of the crypto market, and therefore it is ideal for both investing and speculating (if you are tightly immersed in sports and related events). And finally, it’s a great way to make money from something you like, because sports are about excitement and dynamics, which you just can’t not love.
9
