Here’s why Chiliz and Algorand are plunging hard after the start of the World Cup in Qatar

Today, Chiliz (CHZ) and Algorand (ALGO) fell 15% and 10%, respectively. Although the market remains down, both crypto assets have seen larger losses than the majority of the top 100 cryptocurrencies by market capitalization.

The decline comes as investors take profits from the earlier rise caused by the excitement surrounding the FIFA World Cup.

It is no surprise that on November 20, the day the FIFA World Cup Qatar 2022 started, both tokens saw price declines, which were exacerbated by the current market sell-off.

In May, FIFA, the governing body of world football, chose Algorand as its official blockchain partner. According to this partnership, Algorand will be a “regional supporter” for North America and Europe during the World Cup and an official sponsor of the Women’s World Cup in Australia and New Zealand in 2023. Algorand will, among other things, provide the official FIFA portfolio based on the blockchain.

Chiliz has also benefited from the FIFA craze, as participating teams, such as the Italian national team, Portuguese national team, and Argentina national team, each have their fan token launched on the platform.

The cryptocurrency market is collapsing

The cryptocurrency market remained under pressure over the past two weeks as the FTX exchange saga unfolded. Since Nov. 6, when Binance CEO Changpeng Zhao said his exchange would liquidate its FTX tokens, the cryptocurrency market has lost over $260 billion in value.

New FTX CEO John Ray said over the weekend that the exchange is looking to sell or restructure its empire. FTX reportedly owes some $3 billion to its major creditors.

Crypto markets remain on high alert as it remains unclear how the FTX saga might end and if there will be any further meltdowns resulting from its contagion.

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