The Chiliz token has gained a lot of popularity and attention recently attracting a vast sports community. This is reflected in the price action, which has skyrocketed by 800% in March. That’s why we decided to make a short analysis about what the Chiliz coin is. According to the Coingecko ranking, the Chilliz is Nr.25 what only proves its popularity.
What is Chiliz?
Chiliz is a currency option for blockchain-supported products & services geared towards mainstream consumers. It is used as a native digital currency for the socios.com platform, where sports devotees can buy Fan Tokens of their favorite teams with Chiliz coin.
Foreshorten, Chiliz provides sports & entertainment entities with blockchain-based tools to help them engage & monetize their audiences.
Since Chilliz’s focus is the sports community, the active address of token holders has risen significantly and currently hit more than 400 000.
About token and Fan token
The purpose of a token is to be items of inherent value designed to enable purchases, sales, and other financial transactions. They are intended to provide many of the same functions as long-established currencies.
Its purpose and popularity can determine the value of a token, but as most tokens have a fixed or limited supply, their value is often related to supply and demand.
Tokens generally fall into two categories:
- Utility
- Security
A Utility Token provides access to the goods and services that a project launched or will launch in the future and can be used as a type of discount or premium access to the services. A lot of tokens tend to be used specifically as a funding mechanism for companies.
ChiliZ ($CHZ) is an ERC20 utility token on the Ethereum blockchain that serves as a digital currency for the chiliZ and Socios.com platform.
Now, sports tokenization came along, exploring the possibilities of blockchain and bringing sports fandoms to a completely different level of involvement. Socios is one of the platforms that made it happen.
The Fan Token
Once onboard the Socios.com platform, the ChiliZ club partners host what we have termed a Fan Token Offering (FTO). Fans must purchase $CHZ via a cryptocurrency exchange to acquire Fan Tokens. These tokens specific to a team or club are a finite, digital asset that provides access to an encrypted ledger of voting and membership rights ownership.
Ownerships offer fans the ability to participate in fan-led decisions through a mobile voting platform, as well as serving as a ticket into a secure, exclusive inner circle of fans, with shared passions and beliefs. The more tokens a fan holds, and they more they vote, the higher the clout rating of that fan, moving them upwards through different reward tiers until they have access to the biggest VIP benefits that are on offer.
Who Already Uses Socios
The Socios platform is associated with ten sports clubs, and the number is expected to grow. Six of the teams already held Fan Token offerings, allowing their fans to participate in clubs’ decision-making process directly.
The teams in question:
- FC Barcelona
- Juventus (was the first team to hold a Fan Token offering and invite its fans to help manage the club)
- Paris Saint-Germain
- Atletico de Madrid
- Galatasaray
- AS Roma.
It is necessary to mention that supporters’ participation in the clubs’ life is limited. Token holders are mostly trusted with issues like jersey design, in-stadium entertainment, and others. Fan Tokens also grant fans access to special events, exclusive content, rewards, and merchandise, and they act like membership cards.
Chiliz (CHZ) Cryptocurrency
As mentioned above, Chiliz is an ERC-20 standard digital coin that facilitates sports tokenization and enables fans’ engagement in their favorite teams’ management. CHZ crypto went through private placement in 2018, raising over $66 million. This coin’s total supply is 8.8 billion $CHZ and currently, as already mentioned, is ranking in the 25th place among all the cryptocurrencies with a market capitalization of almost $4 billion.
As Chiliz cryptocurrency is an ERC-20 token, it is available on the Ethereum platform. CHZ crypto uses smart contracts to secure the voting process and fan influence polls. The best options for storing Chiliz are ZenGo and Trust Wallet.
Summary
Chiliz coin is a cryptocurrency based on Etherum blockchain that aims to tokenize the sports industry and helps to include sports and esports fans into clubs’ management. It also uses smart contracts to provide safe voting for sports fans. It is traded on the most popular exchanges like Binance and Upbit in various pairs. Fans use CHZ to buy Fan Tokens of their favorite teams.
The Socios platform is a community app for sports fans who want to have a say in sports clubs’ lives. The platform enables the clubs to issue their own Fan Tokens. Fans buy those tokens with CHZ and use them for voting and polls; the more tokens you have, the more valuable your vote is.
Fan Tokens can also be used to get special merchandise and participate in meet-and-greets. Token holders get exclusive offers and rewards from their favorite team.
Despite the fact the coin valuation is quite big with the recent spike, the sports industry is enabling significant upwards long-term opportunities.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
