Fan tokens: why have they fluctuated recently?

Fan tokens are one of the new additions to the global crypto market. Although crypto has been a hot topic for investors for years, fan tokens have suddenly come to the fore. There were different reasons for their rise, but the ensuing relapse shocked investors. Investors were planning to invest their capital in these tokens, but the sudden changes caused them to reconsider their plans.

Interest in cryptocurrencies has grown beyond finance. Investors consider them for the various benefits they can bring in the near future. The global adoption of crypto across different industries and its growing benefits are why different types of tokens have come into the market. The recent swings might be a passing event in the market, but these tokens could have a lasting impact on the market.

Here’s a quick look at the rise of Fan Tokens and why they’ve seen such fluctuations.

Fan Token Pump

The crypto token pump is a common occurrence, and the recent change for fan tokens is no different. The hype for the Fan Tokens can be seen from their initial launch, which attracted £260m. Different prestigious football clubs in Europe have launched their fan tokens providing different options for fans to engage with their favorite clubs. Fan Tokens can be used to purchase different products from supported organizations.

Rise of Fan Tokens

Recent data shows that Fan Tokens were among the top earners on Binance and other exchanges. More and more fans have rallied to buy these tokens. Available data shows that the Santos token has risen over 135% due to the market rally. BoringDAO was up 47.67%, while Alpine added 27.35%. Also, if we look at the performance of Stargate Finance, it added 41.94%, while Eforce added 32.55%.

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Bullish pattern reversal

There are dozens of fan tokens listed on Binance, and fans can purchase them. Interested users can purchase these tokens using Chiliz (CHZ), which is a token specifically there for such purchases. When a user purchases Chiliz, they need to create an account on their fan token platform and get the desired token.

Reasons for the Rise and Fall of Fan Tokens

The surge in fan tokens following the recent pump has intrigued investors. Market analysts have cited various reasons for the rise of these tokens. One of the main reasons for their rise is the start of the gaming season. The football season has started with the start of the English Premier League, which kicked off earlier this month. Moreover, top-flight Spanish football started last weekend, creating a stir. So, fans from different clubs want to participate and have invested in said tokens.

Another reason cited for the rise of these tokens is rising inflation in Turkey. The value of the Turkish Lira has declined while Binance has trading pairs with the Turkish Lira. Thus, the pomp of Turkish investors can be cited as another reason for this. What is most interesting for the market is the decline in the market value of fan tokens. The value of the Santos token saw a drop of 38.45%, while BoringDAO lost 36.96%. These changes nullified the gains for investors.

Possible reasons for the discharge include social media promotion by some investors for profit, staking draws or price manipulation. The next few days will clarify how some users have benefited from their rise.

Conclusion

The last few hours brought crypto fan tokens to the fore as they saw a huge surge. The change proved to be momentary and resulted in a reversal of gains. Most of these tokens could not hold their gains and lose value. Analysts are divided on the reason for these fluctuations, but one of the most obvious is the promotion to benefit a specific group.

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