Utility token Chiliz ($ CHZ) goes up by about 2,400% since the beginning of 2021. Chiliz ($ CHZ) is perfect for sports fans, allowing investors to become partners of teams like Juventus, Barcelona, PSG and even Ultimate Fighting Championship (UFC).
What is Chiliz?
Launched in September 2019, Chiliz ($ CHZ) is the world leader in providing fintech blockchain for sports, e-sports and entertainment. For this characteristic, cryptocurrency is also popularly known as Fan Token.
According to the token’s official website, the coin aims to increase daily experiences such as involvement of fans in entertainment and alternative payment solutions for conventional products.
This crypto asset provides sports and entertainment entities with blockchain-based tools to help them engage and monetize their audience.
Chiliz: An utility token
Unlike most traditional digital currencies, Chiliz ($ CHZ) falls into a category called a utility token.
Utility tokens are mixed assets based on Ethereum. According to experts, these crypto tokens have value and investors can trade them, speculating with ups and downs in the process. Chiliz main utility is to provide access to services and function as a means of exchange within other platforms and environments.
Chiliz ($ CHZ) – Rocket fuel for Socios.com
In Chiliz’s case, the investor who has the CHZ token can access games from renowned teams, such as Barcelona, Juventus and PSG. In addition, it is also possible to compete for awards from club sponsors, receive VIP rewards and convert the utility token into voting rights in team decisions.
It’s important to make it clear that decisions do not cover political decisions within clubs. Decisions often vary from team to team and are a means of bringing entity and fan closer together. Thus, the fan can choose, for example, which phrase will be stamped on the team captain’s arm and which song will play when a player scores a goal.
To have these benefits, the investor must buy the Fan Token at a cryptocurrency broker, in the same way that Bitcoin or other traditional crypto currencies are traded. It is possible to check the Chiliz ($ CHZ) conversions for the major cryptocurrencies through the Chiliz Exchange.
After that, it is necessary to transfer the Chiliz ($ CHZ) to the Socios.com platform. Created in 2018, Socios.com is an European voting and rewarding company for fans.
The Socios.com fan engagement platform is built from the ground up on Chiliz’s blockchain infrastructure and uses $ CHZ as the sole currency on the platform. There, you can create and buy your own tokens from fans of the clubs you want to have exclusive access.
See the step-by-step in the image below:
According to specialists, Chiliz is the fuel of the Socios.com ecosystem. Socios.com is the company that has the commercial agreements with the clubs, and what it does, through Chiliz, was tokenize rights to the fans.
What is the reason for the uptrend of Chiliz?
According to CoinMarketCap, by the end of March (29), Chiliz ($ CHZ) went up by 2,395.77%. Its market value went from $ 0.02 to $ 0.53.
In comparison, during the same period, Bitcoin and Ethereum went up by 97.58% and 141.31%. Bitcoin price was at $ 57,750.20 and Ethereum at $ 1,819.68.
Chiliz ($ CHZ) is a recent asset that belongs to a market in the process of consolidation. Therefore, it is still difficult to explain its high valuation and the factors that determine its price.
However, experts say that the greater the number of fan tokens created, the greater the demand for $ CHZ.
Among the factors that can justify the increase in Chiliz ($ CHZ) price, is the expantion and growth in the United States and Brazil.
In March this year, CEO Alexandre Dreyfus announced an investment of $ 50 million for the expansion in the United States and confirmed the opening of a company office in São Paulo, Brazil.
Soccer-Blockchain sports firm Chiliz to invest $50 million in U.S expansion https://t.co/oLcJz1zfxQ
— Alexandre Dreyfus (@alex_dreyfus) March 2, 2021
It is worth mentioning that the performance of clubs that are linked to digital assets in major competitions determines the movement of the currency. An example is the price of the PSG Fan Token. It increased by almost 110% after the football team’s victory in the Champions League quarter-finals.
Chiliz $ CHZ price today
Currently, Chiliz ($ CHZ) price is at $ 0.4603.
The crypto token ($ CHZ) market cap is $ 2,588,748,703 and total current assets correspond to 5.59B CHZ.
Chiliz generates opportunities for clubs
In 2020 Fan Tokens generated $ 30 million in revenue for clubs and partners.
Data released by $ CHZ reveals that 23 major sports organizations have partnered with the crypto token to launch Fan Tokens on the Socios.com rewards platform.
For sports clubs, this is a new method to generate revenue, engage and attract fans.
Is it worth investing in the Chiliz Fan Token?
Despite the high profitability of $ CHZ, experts warn of risks related to the high volatility linked to these assets.
It’s important to keep in mind that the volatility of utility tokens is higher than that of the most popular cryptocurrencies. Also, these tokens directly depend on the performance and delivery of a company.
Crypto experts also say that the token market is in the process of growth and improvement. “If a security breach occurs at Chiliz or Socios.com, these platforms may be banned and Chiliz breaks”, they say.
On the other hand, cryptocurrencies exist independently of a company or a sport club.
Despite these factors, $ CHZ liquidity risk is low since it has been in high demand these past few months. It is increasingly easy to buy and sell the digital asset.
Keep in mind investors should closely monitor what happens in the invested clubs, Chiliz and Socios.com in order to be protected against high volatility.
