TY - JOUR
T1 - Anticipatory gains and event-driven losses in blockchain-based fan tokens
T2 - Evidence from the FIFA World Cup
AU - Saggu, Aman
AU - Ante, Lennart
AU - Demir, Ender
N1 - Publisher Copyright: © 2024 The Authors
PY - 2024/6
Y1 - 2024/6
N2 - National football teams increasingly issue tradeable blockchain-based fan tokens to strategically enhance fan engagement. This study investigates the impact of 2022 World Cup matches on the dynamic performance of each team's fan token. The event study uncovers fan token returns surged six months before the World Cup, driven by positive anticipation effects. However, intraday analysis reveals a reversal of fan token returns consistently declining and trading volumes rising as matches unfold. To explain findings, we uncover asymmetries whereby defeats in high-stake matches caused a plunge in fan token returns, compared to low-stake matches, intensifying in magnitude for knockout matches. Contrarily, victories enhance trading volumes, reflecting increased market activity without a corresponding positive effect on returns. We align findings with the classic market adage “buy the rumor, sell the news,” unveiling cognitive biases and nuances in investor sentiment, cautioning the dichotomy of pre-event optimism and subsequent performance declines.
AB - National football teams increasingly issue tradeable blockchain-based fan tokens to strategically enhance fan engagement. This study investigates the impact of 2022 World Cup matches on the dynamic performance of each team's fan token. The event study uncovers fan token returns surged six months before the World Cup, driven by positive anticipation effects. However, intraday analysis reveals a reversal of fan token returns consistently declining and trading volumes rising as matches unfold. To explain findings, we uncover asymmetries whereby defeats in high-stake matches caused a plunge in fan token returns, compared to low-stake matches, intensifying in magnitude for knockout matches. Contrarily, victories enhance trading volumes, reflecting increased market activity without a corresponding positive effect on returns. We align findings with the classic market adage “buy the rumor, sell the news,” unveiling cognitive biases and nuances in investor sentiment, cautioning the dichotomy of pre-event optimism and subsequent performance declines.
KW - Blockchain
KW - Cryptocurrency
KW - Efficient Markets Hypothesis
KW - Fan Tokens
KW - Football
KW - Intraday Data
UR - https://www.scopus.com/pages/publications/85188685664
UR - https://iris.ru.is/ws/files/246018847/1-s2.0-S0275531924001260-main.pdf
U2 - 10.1016/j.ribaf.2024.102333
DO - 10.1016/j.ribaf.2024.102333
M3 - Article
SN - 0275-5319
VL - 70
JO - Research in International Business and Finance
JF - Research in International Business and Finance
M1 - 102333
ER -