Fan tokens, or digital assets designed to provide benefits to football club fans, have delivered double-digit gains for holders in the past week. OG Fan Tokens (OG) helped homeowners return 262% this week, with Manchester City Fan Tokens (CITY) up 14%, FC Barcelona Fan Tokens (BAR) up 4%, Juventus Fan Tokens (JUV) Earn 29%.
Lawyers believe that the increase in the price of fan tokens can be attributed to the Hong Kong-based trading group, and that these increases may not be sustainable in the long run.
Fan Tokens Offer Double-Digit Returns to Holders Leading OG
Chinese journalist Wu Shuo reported on the massive bull run of OG Fan Token, which brought holders a 262% return in the past week. The OG protest sparked massive interest in fan tokens for football clubs like CITY, BAR, and JUV.
Token Fans increased in price during the week. Source: Coinecko
According to CoinGecko data, the total market capitalization of these fan tokens has increased by 16.2% in the past week.
What is driving the price increase for token fans?
Lawyer Liu Yang told reporter Wu Shuo that the protest may be related to the behavior of the merchant. Yang said that participants in the relevant trading circle of the OKLink platform participated in the issuance of the platform’s stable currency USDK.
The same traders have been controlling Tornado Cash’s TORN token, with lawyers warning users of the risks associated with a short-term bull run. Given that the participation of a small group of traders has fueled the rally in various tokens, the rise of token fans may not be sustainable.
- Bank Failures Could Cause Recession in 2023 – Where Will Bitcoin Go?
- Capo warns of imminent recession in cryptocurrency market
According to FxStreet