Fan token of the Brazilian team collapses 30% even after Brazil's victory

Brazil debuted with a 2-0 victory in the men's soccer World Cup. However, this was not enough to boost the price of the Fan Token (FT) for the Brazilian team. The Brazil National Football Team Fan Token (BFT), launched by Bitci exchange in partnership with the Brazilian Football Confederation (CBF), continued its bearish trend and collapsed around 30% in the last 24 hours.

Considering the price variation of the last seven days, the drop is even more expressive, of just over 50%. At the time of writing this article, the digital asset is costing BRL 2.66, according to data from CoinGecko.

Fan Token BFT price chart. Source: CoinGecko

Fan Tokens of national teams drop even after victories

In general, the World Cup does not help the Fan Tokens of national teams to increase in value. The FT of the selection of Portugal, for example, dropped more than 16% in the last 24 hours, even with the victory of the team led by Cristiano Ronaldo over the selection of Ghana last Thursday (24).

Likewise, the Fan Token of the Spanish national team has devalued more than 24% in the last 24 hours, despite the fact that the team has run over Costa Rica by seven to zero on Wednesday (23).

The FT of the Argentine national team, the ARG, continues to fall after Lionel Messi's team lost to Saudi Arabia on Tuesday (22). Shortly after the defeat, as  reported  CryptoFácil, the token collapsed about 27%, according to data from CoinGecko. Now, the digital asset has accumulated a 13% drop in the last 24 hours.

CBF splits with Bitci

Although the drop in the prices of Fan Tokens for the national team seems to be a trend – even in the face of victories and thrashings – the case of the FT of the Brazilian national team has a particularity.

Cryptocurrency exchange Bitci, responsible for issuing the asset, would have given a “default” of several months to the CBF for failing to comply with the sponsorship agreement. Shortly before the debut of Tite's selection in the Cup, CriptoFácil  reported  that the CBF terminated the contract with the company due to delays in payments.

Bitci and CBF entered into a partnership to launch the Fan Token and a collection of NFTs for the national team in June 2021. The contract would have an initial duration of three years. That is, there were still about two years of agreement.

In July, BFT launched and sold out within 30 minutes of a pre-sale round. Sales generated R$ 90 million for CBF. Then, in September, the company launched the NFTs for the Brazilian team and its players. However, it looks like things have started to go downhill for Bitci in recent months. Not only CBF but other clubs that were partners of the Turkish exchange broke with the company for alleged defaults.