The latest crypto crash, caused by the UST “algorithmic stablecoin” and its paired LUNA token, has erased over $45 billion worth of value from the markets. Almost all crypto holders lost significantly, especially the latest adopters. Over the last two weeks the market is trying to find ground with Bitcoin hovering around the 30K mark but the direction it is going to go seems undetermined as of yet.
Despite this horrific development, it turns out that a certain group of investors still managed to make good returns throughout this period. TradingPedia analysts delved deep into market data to find some of the trending Fan Tokens, yielding over 200% over the last 14 days.
Let’s have a look at probably the best example. The Santos FC Fan Token registered over 220% gains over the last 14-day period while daily trading volumes surpassed $330M at the most active periods.
There is a similar pattern, shared between these fan tokens. Initially they all went down with the Bitcoin dropping to the lowest levels on 5/12. However in the next few days some of them regained traction and registered trading volumes increasing by up to over 5000% and prices rising by over 300% in some cases. This is something we have seldom seen with other crypto assets throughout this period.
“This is actually somewhat expected in such a crash. In this scenario some investors refrain from closing the positions they hold by selling their cryptocurrency low for fiat. This would mean for them to incur large losses. Rather than that, they would try hard to find an alternative crypto asset, that may be higher-risk but still offers them good returns while the overall crypto market is unstable and trying to consolidate.”
The fan tokens are tradable finite digital assets, powered by the Blockchain. They usually have a DAO element and clubs use them to allow fans to vote on certain fan-related decisions that affect the club. This gives these tokens an edge over purely-speculative instruments as loyal fans tend to hold them for the sentimental value and the voting rights.
The Fan Token market is dominated by football clubs, holding 9 out of the first 10 spots in terms of market cap, as of the date of publishing this article. Eight out of these nine clubs are European and one is the Brazilian Santos FC. The only exception from football in the top 10 is the Alpine F1 team token.
|Alpine F1 Team Fan Token||ALPINE||$39,470,432.00|
|Paris Saint-Germain Fan Token||PSG||$24,300,179.00|
|S.S. Lazio Fan Token||LAZIO||$21,301,169.00|
|Santos FC Fan Token||SANTOS||$20,337,115.00|
|Manchester City Fan Token||CITY||$19,583,760.00|
|FC Porto Fan Token||PORTO||$18,299,377.00|
|FC Barcelona Fan Token||BAR||$17,447,988.00|
|AC Milan Fan Token||ACM||$11,284,161.00|
|Galatasaray Fan Token||GAL||$9,003,009.00|
|Inter Milan Fan Token||INTER||$8,694,156.00|
* Data Source: CoinMarketCap; data as of 26 May 2022