The FIFA world cup is one of the largest global event in the world, known for bringing the world together with football, thereby attracting billions of views which in turn lead to massive economic activity... Crypto on the other hand, has grown into a major force in global finance. And when these both meet it can have "Devastating" effects both positively, and negatively.
But... what effects can the World Cup have on crypto?
1. Increased Adoption and Awareness
During the World Cup, crypto companies sometimes sponsor teams, players or even the tournament itself.
For example, during the 2022 World Cup hosted in Qatar, Crypto.com became an official sponsour of the event which led to global exposure to crypto.
2. Rise of Fan Tokens.
Fan Tokens are special cryptocurrencies that give sports fans a way to not only interact but also to influence their favourite team. Fan tokens can be used to;
- Vote on decisions.
- Get rewards.
- Access exclusive content.
During the World Cup, prices of Fan Tokens can rise significantly due to hype and can fall just as fast.
3. Increased Market Volatility.
Crypto is highly influenced by global events that affect the world, both good and bad, and the World Cup is one of the many events that takes place globally which has more impact on the world than other events. Because of this, prices can pump quickly and then fall when hype fades away.
As a result, short term volatility increases in the crypto market.
4. Payments and Global Transactions.
Because the World Cup brings fans from all over the world together, the problem of currency barriers is sure to show up. Well, crypto helps solve these problems too. Platforms such as Binance, Coinbase, PayPal, and Ethereum enable users pay for goods and services using both crypto and Fiat money. Because of this, crypto proves its usefulness as a global payment system.
5. Risks and Downsides.
Even with the positive effects that the World Cup can have on crypto, it may have little or no effect in price of crypto.
For example, during the 2022 World Cup hosted in Qatar, Bitcoin remained volatile and the .market was affected by global economic factors than football.
In conclusion, although the FIFA World Cup may boost crypto awareness and adoption, world conflicts such as the Russia-Ukraine war and rising tensions between US and Iran may have more effects on crypto than the World Cup.
