Paris Saint-Germain Football Club defeated Inter Milan in the Champions League final last weekend (31st), successfully claiming the title. This was supposed to be a moment of glory for the team and its supporters. However, for investors holding Paris Saint-Germain's official fan token $PSG, this victory brought an unexpected shrinkage in asset value. Not only did the champion team's token price drop, but Inter Milan's fan token $INTER also significantly declined. This phenomenon reveals a common and important trading strategy in the cryptocurrency market: "Buy the rumor, sell the news".
Fan Tokens Continued to Decline Before and After the Match
After Paris Saint-Germain's championship, their official fan token $PSG price did not rise but fell, and Inter Milan's official fan token $INTER also simultaneously plummeted. These fan tokens are issued on the Socios platform using Chiliz technology, aimed at promoting fan interaction, such as participating in limited governance decisions or enjoying exclusive experiences.
According to price data, three days before the final, $PSG token price dropped 26%, with market value decreasing from $25 million to $19 million. $INTER token's decline was even more dramatic, falling 44% during the same period, with market value shrinking from $11.4 million to $6.4 million. Even after Paris Saint-Germain confirmed their championship, $PSG price continued to slide initially.
Fan Tokens: Unable to Reflect True Entertainment Value
Fan tokens' unique market positioning: Although they have fan interaction functions, they are more like highly volatile micro-cap assets in trading. Their prices are far more influenced by market sentiment and short-term trading behaviors than fundamental factors. Behind this mainly exists the phenomenon of short-term buying and selling in the cryptocurrency market. Traders will buy assets in advance before expecting a favorable event (such as an important sports event and being optimistic about a certain team), pushing prices up through market optimism.
Once the event occurs, regardless of the result, traders will sell their holdings to realize profits. For fan tokens, major competitions are clear catalysts, providing ideal conditions for the "selling good news" strategy. Due to the fan token market being smaller and less liquid compared to mainstream cryptocurrency markets, such concentrated buying and selling behaviors more easily trigger dramatic price fluctuations.
This is not an isolated case. After Manchester City won the Champions League in 2023, their fan token $CITY also dropped about 30% the next day, proving this pattern is not rare in major events. Data also shows that in the weeks before the final, $PSG token significantly surged, with market value growing over 60%, confirming the existence of the "buy rumor" phase. Although prices might slightly rebound due to winning-related attention in the short term, the overall trend is dominated by "selling the news".
Paris Saint-Germain's victory in the Champions League final did not cause its fan token $PSG to rise. This market performance once again confirms the common "selling good news" trading mode in the cryptocurrency domain: market participants push prices up before an event and sell for profits once the event occurs. For fan tokens, despite carrying fan emotional connections, they are more viewed as risk assets driven by short-term sentiment and events at the trading level. How to make fan tokens reflect genuine sports and entertainment value, and create additional effects for invested fan tokens, remains an area with much room for improvement in the industry.
