Whereas Argentinian star Lionel Messi has lastly lifted a World Cup trophy, the ARG fan token has seen an amazing dive in value. Why did it occur?
One of many greatest sporting occasions of the 12 months has seen top-of-the-line finals ever. FIFA World Cup 2022 in Qatar is formally over, with Argentina profitable at a penalty shootout over France. What preceeded the penalty shootout was nevertheless not a goalless draw, however fairly some of the dramatic finals within the soccer historical past.
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The match ended 2-2 on the full time and 3-3 on the additional time, with Argentina having extra luck within the penalty shootout. Nevertheless, it doesn’t appear that its token, Argentine Soccer Affiliation Fan token (ARG), had the identical luck. Regardless of Lionel Messi and Argentina profitable the World Cup yesterday, ARG has misplaced 50% on its value. Why did it occur?
Purchase the rumours, promote the information
Whereas the actual trigger for the drop can’t be identified, identical to with another market, one believable rationalization can be as follows. Argentina was one of many favourites to win the World Cup. This may imply that many would speculate on Argentina profitable and the worth of ARG rising. These speculators would thus purchase the token prematurely and hope for the very best.
Value growth of ARG token because the begin of 2022, supply: coinmarketcap.com
That was in all probability one of many the reason why the token has elevated from $1.3 at first of the 12 months to $9.15. This value was reached on 19th of November and is the ATH for ARG. So simply across the time that the World Cup began, ARG reached its highest ranges. Nevertheless, it then began to lose momentum.
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It might appear that the speculators or gamblers who purchased the ARG token beforehand, purely wished to attend for the World Cup to begin after which dump the tokens on the followers. On these followers, who can be shopping for the token primarily based on the performances of the soccer squad round Lionel Messi.
It might due to this fact appear that the entire value motion round ARG token is an efficient instance of “purchase the rumours, promote the information” occasion. This notion would make much more sense on account of the truth that the ARG misplaced half of its value few hours after Argentina gained the World Cup. Logically, everybody would anticipate the worth of the token to skyrocket after profitable, however the reverse occurred.
ARG token value collapse within the final 24 hours, supply: coinmarketcap.com
Thus, the followers of Argentina, who purchased the token proper earlier than the event and even the ultimate in all probability ended up shedding cash on this speculative commerce. However that’s sadly, not stunning in any respect. Shopping for tokens like these primarily based on hopes and expectations could be very dangerous. But, this could not overshadow the sensible Phrase Cup event that Argentina led by Lionel Messi had. Congratulation to the winners as soon as once more.