One of the biggest sporting events of the year has seen one of the best finals ever. FIFA World Cup 2022 in Qatar is officially over, with Argentina winning at a penalty shootout over France. What preceeded the penalty shootout was however not a goalless draw, but rather one of the most dramatic finals in the football history.
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The match ended 2-2 at the full time and 3-3 at the extra time, with Argentina having more luck in the penalty shootout. However, it does not seem that its token, Argentine Football Association Fan token (ARG), had the same luck. Despite Lionel Messi and Argentina winning the World Cup yesterday, ARG has lost 50% on its price. Why did it happen?
Buy the rumours, sell the news
While the real cause for the drop cannot be known, just like with any other market, one plausible explanation would be as follows. Argentina was one of the favourites to win the World Cup. This would mean that many would speculate on Argentina winning and the price of ARG rising. These speculators would thus buy the token in advance and hope for the best.
Price development of ARG token since the start of 2022, source: coinmarketcap.com
That was probably one of the reasons why the token has increased from $1.3 at the beginning of the year to $9.15. This price was reached on 19th of November and is the ATH for ARG. So just around the time that the World Cup started, ARG reached its highest levels. However, it then started to lose momentum.
It would seem that the speculators or gamblers who bought the ARG token beforehand, purely wanted to wait for the World Cup to start and then dump the tokens on the fans. On those fans, who would be buying the token based on the performances of the football squad around Lionel Messi.
It would therefore seem that the whole price action around ARG token is a good example of “buy the rumours, sell the news” event. This notion would make even more sense due to the fact that the ARG lost half of its price few hours after Argentina won the World Cup. Logically, everyone would expect the price of the token to skyrocket after winning, but the opposite happened.
ARG token price collapse in the last 24 hours, source: coinmarketcap.com
Thus, the fans of Argentina, who bought the token right before the tournament or even the final probably ended up losing money on this speculative trade. But that’s unfortunately, not surprising at all. Buying tokens like these based on hopes and expectations is very risky. Yet, this should not overshadow the brilliant Word Cup tournament that Argentina led by Lionel Messi had. Congratulation to the winners once again.