Socios.com welcomes the Court’s decision and assures that it will collaborate with the Argentine Justice. The price of the fan token of the Argentine National Team increased its price by up to 100%.
A judge in Argentina decided that the Argentine Football Association (AFA) and the cryptocurrency exchange Binance must desist from carrying out acts of the consummation of pre-contractual negotiations, instrumentation, and execution of commercial agreements in the announcement made by the AFA on January 24 on its website.
This decision appeared on January 28, by Judge María José Gigy Traynor, concerning the alliance between the sports entity and the exchange. The deal also added sponsorship agreements and the transfer of a right created to deal with fan tokens, which got covered by another company called Socios.com.
In addition, the caution resolution qualified as “not to innovate” adds a ban that impedes the execution of any act that could alter the rights of emerging partners of the agreements or of those users who have managed to acquire the fan tokens.
It is worth clarifying that, like any precautionary measure not to innovate, this one gets oriented to preserve while the first process is substantiated. It could represent an inalterability of a factual or legal situation existing previously to the conduct of one of the parties.
In other words, the AFA must comply with the contract as it got signed with Socios.com and not move forward with any other deal that could dare to prevent the execution of the first one.
Days ago, Socios.com had warned to initiate legal action against the Argentine Football Association for what they consider a breach of contract. In addition, the company specializing in sports team tokens explained that, by handling another agreement to achieve the issuance of new items, the AFA is not respecting those millions of fanatics that it has actively encouraged to purchase fan tokens on Socios.com.
Argentina Fan Token Price Grew 100%
The same day the decision appeared, the Argentine fan token price increased 100%. The increase happened in just a few hours.
$ARG managed to trade up to USD 2.64, both on the Socios.com platform and the Chiliz exchange. Since October of last year, such a price was never reached for the fan token of the Albiceleste team before.
Many holders of this fan token felt affected by the conflict between Socios.com and the AFA as they did not know if the item they had purchased would continue to be the official one or if Binance would issue a new token. This situation pushed many holders to sell their holdings which lowered its price.
On the other hand, the resolution sets up a limit on the actions of the AFA and Binance. It remains to wait for Justice to get defined on this matter.
By: Jenson Nuñez
