Anticipatory gains and event-driven losses in blockchain-based fan tokens: Evidence from the FIFA World Cup
Issued Date
2024-06-01
Resource Type
ISSN
02755319
Scopus ID
2-s2.0-85188685664
Journal Title
Research in International Business and Finance
Volume
70
Rights Holder(s)
SCOPUS
Bibliographic Citation
Research in International Business and Finance Vol.70 (2024)
Suggested Citation
Saggu A., Ante L., Demir E. Anticipatory gains and event-driven losses in blockchain-based fan tokens: Evidence from the FIFA World Cup. Research in International Business and Finance Vol.70 (2024). doi:10.1016/j.ribaf.2024.102333 Retrieved from: https://repository.li.mahidol.ac.th/handle/20.500.14594/97840
Title
Anticipatory gains and event-driven losses in blockchain-based fan tokens: Evidence from the FIFA World Cup
Author's Affiliation
Corresponding Author(s)
Other Contributor(s)
Abstract
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.