Football Club Fan Tokens: A risky investment – Arsenal’s $AFC Token loses 38.35%, Leeds’ $LUFC 88.08%
- Arsenal’s $AFC token lost 38.35% in 12 months, despite being considered one of the top-performing tokens (to February 2023).
- Arsenal have already been reprimanded twice by the Advertising Standards Authority (ASA) for their advertising around fan tokens.
- Only three clubs saw their crypto fan token prices increase over the past year
- Santos FC’s $SANTOS token experienced the largest increase at 22.59%
- Leeds’ $LUFC token suffered the biggest loss, dropping 88.08%
- Experts advise thorough research and caution before investing in football club fan tokens, as they can be a risky investment
Investing in football club fan tokens can be a risky business, as shown by the performance of the top and bottom five tokens over the past 12 months.
Santos FC’s $SANTOS token saw the biggest increase, rising 22.59%, while Leeds’ $LUFC token saw the biggest loss, dropping 88.08%.
Among the top five performers, Napoli’s $NAP and AS Monaco’s $ASM tokens also saw gains, while Lazio’s $LAZIO and Arsenal’s $AFC tokens saw losses.
Among the bottom five performers, tokens for Levante, Everton, Dinamo Zagreb, and Aston Villa also saw significant drops.
Arsenal, who have already been told off twice for their advertising around fan tokens, have seen the value of theirs drop 38.35% over the past 12 months.
Only three clubs have seen the price of their crypto fan tokens increase and two of the top two performers have seen a massive drop in value.
Football club fan tokens Top 5
#1 – $SANTOS – Santos FC
Santos are a Brazilian football team that Pele famously played for, and are one of the biggest teams in South America.
In January 2022 their $SANTOS fan token was worth $3.5038, which means that a $100 investment would have bought 28.5404 tokens.
The price of the token has since risen to $4.2954 which means a $100 investment would have ended with $122.59, a 22.59% increase, the most out of any fan token.
#2 – $NAP – Napoli
S.S.C Napoli play in the topflight of Italian football, Serie A, which they have won twice.
Their token $NAP was worth $3.2522 in January 2022, which would have purchased 30.7484 tokens.
In January 2023 the price has risen to $3.9388 which means that the original $100 would now be worth $121.11.
#3 – $ASM – AS Monaco
AS Monaco play in the French Ligue 1, which they have one eight times. In January 2022 their token $ASM was worth $1.1225.
$100 would have bought 89.0869 tokens.
The price change over the year ended on $1.1337. This slight increase means fans would have $101.00
#4 – $LAZIO – Lazio
Rome-based Lazio, who play in Serie A, rank fourth, although despite being in the top five it’s not good news for fans. The $LAZIO token was worth $4.6154 on January 1st 2022.
This would have bought fans 21.6666 tokens with their $100.
The price, however, dropped to $2.9683, meaning fans would have only $64.31 left of their initial investment.
#5 – $AFC – Arsenal
Arsenal are the first Premier League team in this list, they are also the best performing, which sets a bad precedent for any other English clubs as they also start 2023 with a loss.
The starting price in 2022 was $3.1948, this had dropped to $1.9697 by January 1st 2023.
This means that Arsenal fans who invested $100 would be left with $61.65.
Football club fan tokens Bottom 5
#1– $LUFC – Leeds
Just like the Premier League table, Leeds finds themselves in the bottom half of this list. Leeds have encountered the biggest losses with the price of their $LUFC token plummeting from $5.4789 to just $0.6531.
This means that of a $100 investment, fans would have only $11.92 left.
#2 – $LEV – Levante
Levante play in the Spanish second division and are based in Valencia. Currently third in the league their crypto token performance hasn’t been as positive. Worth $2.2926 in January 2022, the price has fallen over the year to $0.3635 on January 1st 2023.
This would leave fans with $15.86 if they invested $100 into their team’s token.
#3 – $EFC – Everton
Everton fans won’t be happy anyway right now due to their ongoing relegation battle. It gets even worse if any of those fans invested in the $EFC token last year, as the price fell from $2.3692 to $0.4234, leaving fans with $17.87 left from the initial $100 investment.
#4 – $DZG – Dinamo Zagreb
Dinamo Zagreb are currently first in the Croatian football league, so most fans will be happy with their team’s performance, more so than their $DSG token performance. Its initial low price of $0.9306 means that $100 would have bought you 107.4576 tokens at the start of January 2022, which if sold on January 1st 2023 would have netted you $23.2646.
#5 – $AVL – Aston Villa
Aston Villa are one of the founding teams of the Premier League and also one of the first teams to launch a fan token, although it was met with mixed emotions. The price started at $2.2926, so $100 would have bought 43.6186 tokens. The market conditions lead to the price dropping to $0.6267. This would mean that fans who invested $100 would be left with just $27.3358.
A spokesperson from Trading Browser commented: “Crypto is quickly seeping into many parts of society. Its integration with sports teams has been met with a plethora of views.
“Proponents highlight the engagement and interaction that these technologies allow fans to have with their favourite teams, and say it gives an increased sense of loyalty and community, however like any investment there are risk factors.
“Over the last year, there have been volatile market conditions and many investors have lost money. Therefore it’s important to never invest what you can’t afford and to do your own in-depth research before you invest”
Are Arsenal Fan Tokens a winning investment or an own goal?
The world of cryptocurrencies has extended its reach into the realm of sports, giving birth to fan tokens. As these digital assets gain popularity, many of the world’s most prestigious football clubs have jumped on the bandwagon, with Arsenal being no exception. But are Arsenal fan tokens a smart investment, or will they leave fans feeling short-changed?
Let’s take a closer look at Arsenal’s fan tokens and their performance in the market.
Fan tokens are a unique type of cryptocurrency that can only be used to access specific benefits offered by the football clubs they represent.
Arsenal’s $AFC token allows its holders to purchase exclusive merchandise, attend games or special fan events, and even vote on team-related decisions. These fan tokens are traded on platforms like Socios.com, where they can be bought using Chiliz (CHZ), a special cryptocurrency designed for sports and entertainment tokens.
Despite the hype, not all fan tokens have performed well in the market as you have just read. To reiterate, over the past year, Arsenal’s $AFC token experienced a loss of 38.35%.
Even though this decline places it among the top-performing tokens in the market, it is still a significant drop for those who invested 12 months ago.
In comparison, Santos FC’s $SANTOS token saw the biggest increase, rising 22.59%, while Leeds United’s $LUFC token suffered the most significant loss, plummeting 88.08%.
While the idea of supporting one’s favourite team and accessing exclusive privileges might be appealing, the volatile nature of fan tokens makes them a risky investment.