In recent days, the value of some crypto tokens has been increasing drastically but they are not licensed and neither have an affiliation with World Cup teams. According to an analyst these tokens have little to no intrinsic value and a person who wants to bet on matches at the FIFA World Cup in Qatar would most likely think of a sophisticated sports betting platform.
Crypto investors are faring better than most. Discussions about various tokens, named after participating countries, players, stadiums, and even the hosting country itself, flood crypto Twitter and Telegram groups dedicated to niche altcoins. This weird betting allows speculators to wager on the prices of their favorites.
All this craze has also affected major cryptocurrencies also. For example, people who were interested to buy bitcoin in Dubai or other cryptocurrencies now seem to be inclined toward these new opportunities which are short-term.
There are obviously some factors involved due to which bettors are inclined towards these short-term types of investments.
Even though none of these tokens is licensed or affiliated with any World Cup participants, bettors are still making large profits. The world cup INU token increased 500% in price this week, while other tokens like CHAMPS and the world cup tokens gained at least 200%. In the past 24 hours, however, all of these prices have fallen.
While some things may appear to be a random scramble, they’re not always. Some fan tokens that are issued on blockchain-based fan reward platforms, such as Socios and Bitci, provide holders with the opportunity to contribute to merchandising decisions, participate in exclusive meet-and-greet events and earn loyalty rewards.
In the past week alone, tokens representing fans of Peru’s national team have increased by 29%, while Spain and Brazil saw fan token value growth of 17% and 12%. Even Turkey and Argentina had noteworthy increases of 10% and 9%.
Availability of capital
Many experts believe that the latest craze has a lot to do with investors who have cash but are waiting on the sidelines for a good opportunity to invest. These individuals are willing to put their money into just about anything as long as there is a short-term story or narrative attached to it.
With the World Cup happening soon and the crypto industry’s love of meme coins, it’s inevitable that some entrepreneurs will create World Cup-themed tokens (e.g. WCI and WILLIE).
Hopeful investors should still use some caution. These tokens become high-velocity trading vehicles with little to no intrinsic value or functionality, and will eventually disappear as soon as the event stops happening.