How has Lionel Messi affected crypto markets?

Argentina surprised the world by losing to Saudi Arabia, which caused the ARG token to tumble by more than 30%. Yet, their team managed to win their group.

It’s been all over the news lately. Saudi Arabia won against one of the best football teams in the world, Argentina. World Cup 2022 in Qatar kicked off in the most surprising way and the results continue to be more surprising as ever.

Japan beating Germany, Morocco dominating Belgium and many other matches ended in a surprising result. A lot of gamblers must have bet on many of them. But did you know you can speculate on the outcome of a football game with crypto as well?

But first, what is Chilliz?

Betting is a trillion-dollar industry. There’s no doubt about that. But so is crypto, and there are companies trying to combine these two elements. Chiliz is the leading cryptocurrency with a $1 billion market cap for sports and entertainmentwhich enables fans to participate in fan tokens they create with Socios.

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As a result, most of the major football clubs have their own tokens. This applies to national federations, including Argentina. All of these tokens have just a multi-million dollar market cap, so they are pretty volatile. And most importantly, the outcome of a football match can influence the token’s price. Those who bought the dip on football tokens in the summer could have made hundreds of percent.

“For instance, fans can participate and influence club-related decisions through surveys and polls, such as messages the captain should wear on his armband,” Chiliz stated.

But it’s not just profits that token holders can make as they enable users to participate in the governance of their favorite sports brands and teams. There’s a whole ecosystem built around this, bridging the gap between being an active and a passive fan. Recently, a lot of fans and traders were active in ARG, an Argentinian fan token due to the World Cup.

Argentine Football Association Fan Token (ARG)

ARG jumped from only $0.5 in May to almost $9 in November, totaling a 1,800% return in just a few months during a notable bear market. However, now it’s down 60% in less than two weeks. ARG rose well as the World Cup was starting, and Argentina was seen as one of the main title contenders. But a huge setback came right in the first match.

ARG token was declining during the football match as Argentina struggled to beat its opponent as the largest drop came when Saudi Arabia officially won. Lionel Messi managed to score a goal for Argentina, but it wasn’t enough. ARG fell by approximately 30% in just one day because of such an unexpected loss.

ARG token chart, source: coinmarketcap.com

If you want to search for more of these tokens, just go to coinmarketcap.com and type “fan token” or “football” in the search bar.

It’s true that the ARG token slipped lower before Argentina lost against Saudi Arabia, but the fastest and most drastic drop occurred right after the match ended. However, Argentina won the next two matches against Mexico and Poland, spirit the token still declined even more to levels not seen since August.

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Lionel Messi along with Enzo Fernandez took Argentina to a finish line against Mexico. And after yesterday’s win of Argentina over Poland, the South American giants managed to win their group. Surprisingly, this has not affected the price of the token. It seems like only major (and unexpected) wins or losses have a severe impact on the token. Nevertheless, it’s still interesting to see the football world connect with crypto and this World Cup in Qatar is one of the best events to do that.

Bottom line

As of now, there are tens of football tokens created by Chilliz, which collaborates with these football teams. These tokens have only a few million dollars in market cap at the moment, but if crypto adoption spreads over the next few years, their usage and value could jump significantly. Yet, performances of players such as Lionel Messi seem to have significant impact on the price of the tokens.

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