You have recently invested on Sorare and your cards have lost a lot of value? Are you wondering whether you should panic and sell quickly to avoid losing everything? I suggest you take a deep breath and we review your options together.
Prices are falling …
The fact is that the vast majority of cards have seen their ether price drop in the last few weeks, it’s true.
There are several reasons, alone or collectively, for this drop in card prices:
- The price of ether: since January 1, 2021, the price has risen from €596 to €4,223, a growth of 712% over the period. As a consequence, it is difficult to keep the same prices over the period;
- The number of cards in circulation: over time, more and more cards are put into circulation. If the number of players does not grow enough, there is a big risk that the price of the cards will drop, as a manager does not necessarily want to have 10 copies of the same player. If Sorare is vigilant on this point, even if it means slowing down the creation of new cards so as not to impact too much the price of the cards in circulation, it cannot completely stop the sale of cards, and must therefore find a way to attract new managers to restrict the supply available on the market, which is the origin of the war to 0.001 ETH.
- The number of players: the growth in the number of managers should counterbalance the increase in the number of cards in circulation. If Sorare has seen a significant growth since the end of August, induced by the arrival of the new Limited rarity, we note that only a third of managers have 10 cards or more. A significant growth over the period, but overall relatively few purchases.
- The “hype” effect: the two successive fundraising as well as the arrival of the Limited and other multiple successive big news of these last months allowed to put the light on Sorare and to develop at high speed Sorare. However, it is time for Sorare to slow down for a while its infernal pace since February 2021 in order to reinforce its staff to support the numerous projects engaged and to come following the exceptional fund raising. If the company is buzzing in the backstage, the players are observing a slowdown of announcements and new features, attenuating the hype of these last months, which could lead to a disinterest of some managers for the game.
… but not all cards lose value!
If there is a general perception that the prices of the cards are falling, this is not true for all cards. In fact, there has been an exceptional increase in the prices of the best cards (especially Ajax Amsterdam with its 2 goals conceded in 15 games since the beginning of the season). A Lisandro Martinez, for example, which was selling for 0.380 ETH in mid-August, is now trading for over 1.7 ETH.
This behavior is not surprising: with the strong growth in the number of players, it is increasingly difficult to get rewards in So5, and mechanically, most managers want the best cards, thus driving up the price of these.
What to do?
Accept the situation and bet on the future…
So what to do in this situation with all these cards that have lost so much value? First of all, start by accepting this situation. It may be psychologically difficult to accept, but the value of your cards at the moment is what it is and you will have to move on.
If you are confident in your cards, keep them warm and wait for better days! There are so many parameters that can positively impact the price of your cards, it could be a shame to sell out of impatience and see your card explode in the next 2 years. The crypto sector has demonstrated its ability to move very fast, in one direction or another, and Sorare is no exception, as evidenced by its exceptional growth in 2021. So be patient!
… trade …
A second alternative may be to try to trade your card for another card of equal value but for which you foresee a bright future. Your scouting skills will be put to the test, but perhaps you’ll be able to bounce back with a trade.
… or cut your losses.
Finally, if your card still has some value and you don’t think you’ll get much back on it, cut your losses before it’s worthless and get some of your investment back in the card. It never feels good, but sometimes it’s the lesser of two evils.
Don’t be impatient
If you joined Sorare, it’s because you believed at one time or another in the project of Sorare and its founders. And whether you joined in February, April or September, the situation is much healthier today than it was a few months ago: the two fundraising have given Sorare a very solid financial base to develop the game and make their game a major player in sports entertainment.
The arrival of major partners such as La Liga or the Bundesliga are very strong signals of the confidence of the players of the soccer world in the project. We must not forget that if Sorare has experienced a crazy growth in 2021, the company is still only 3 years old and still has many surprises for the future.
While it may be tempting to Panic Sell in these times of falling card prices and no major announcements on the horizon, think back to all the accomplishments the company made in 2021 and look ahead to a hopefully bright 2022 on Sorare and the entire crypto ecosystem.
See you soon,