Chilz（CHZ）Price Surged by 150%

2022-09-06, 10:27

[TL; DR]

🔹 Chiliz is a blockchain that facilitates engagement between sports teams and their fans.

🔹 The Chiliz token (CHZ) drives the Chiliz and Socios ecosystems.

🔹 Sporting teams can create their branded Fan tokens on the Chiliz blockchain.

🔹 Juventus was the first team to partner Socios and develop its Fan Token.

Introduction

For a long time the traditional sporting sector relied on fans and sponsorships to raise funds for the teams and clubs. With national teams, governments and national sports associations provide financial support. Now, a new funding model based on the blockchain came on the market, the tokenization of fan bases which brings global investment in team sporting projects. Currently, Chiliz, through Socios, is the leading sporting and entertainment blockchain.

Chilz value shots up by 150%

Chiliz, the cryptocurrency that backs the sporting and entertainment platform Socios rose by 150% within a month. This is in contrast to the poor performance of major cryptocurrencies such as ETH and bitcoin. This price resurgence resulted in the token positioning itself among the top 50 cryptocurrencies by market capitalization.

At the time of writing, Chiliz (CHZ) is trading at $0.221. However, it seems to maintain an upward momentum since its price has only fallen by a small margin within two weeks. The following chart shows Chiliz price range on 9 September 2022.

Source: CoinMarketCap

Reasons for the rally

There are several reasons for the sudden rally of the CHZ which include an increase in whale activity

Increase in whale activity
Santiment reports that there was an increase in whale activity on Chiliz (CHZ). This whale reporting platform reports that there were a total of 105 transactions that helped to push the price of CHZ up.

Accordingly, CHZ was among the top cryptocurrencies by trading volume with the most among the top 100 ethereum whales. In fact, there was a remarkable increase in the number of CHZ trading wallet addresses between 22 and 23 August.

Source: Santiment-twitter

There was a similar upward price momentum and surge in activity of CHZ in March 2022, when the cryptocurrency had transactions worth over $100 000.

Growing Number of Partners

Chilz, through Socios, forged various partnerships with popular sporting teams which have large fan bases. For example, it established partnerships with Juventus, Atlético de Madrid, Galatasaray, AS Roma, Paris-Saint Germain, and FC Barcelona.

It also works with several English Premiership League teams such as Manchester City, Arsenal, Everton, Leeds and Aston Villa. In addition, it partnered with Formula 1, National Basket Association (NBA), major esports clubs, the Ultimate Fighting Championship (UFC) and National Hockey League (NHL) , among other sporting disciplines.

These partnerships increase the demand of CHZ because sports fans use it to purchase Fan tokens for their favourite sports teams. More so, the fans use CHZ to buy other products and services which their teams provide like sports betting.

Launch of Chiliz 2.0 protocol

The CHZ rally came soon after Chiliz’s founder Alexander Dreyfus announced the plan to launch a layer-2 scaling solution, Chiliz Chain 2.0. This is a semi- decentralized blockchain that focuses on sports and entertainment. This platform will enable sports teams to create their own digital assets such as non-fungible tokens and Fan Tokens. The CHZ powers all these activities.

Social engagements

The trending news about Chiliz is another contributing factor to its rallying. According to Lunar Crash, there was an increase of over 50% mentions of Chiliz within a week. This created the necessary hype that could have attracted investors such as whales to invest in the cryptocurrency. Specifically, Lunar Crash announced the pending Chiliz layer-2.0 scaling solution, attracting attention of many crypto fans and sports people.

Source: Lunarcrash

What is Chiliz?

We can look at Chiliz as an organization and as a cryptocurrency. Chiliz, an international sports and entertainment firm, was formed in 2012 by Mediarex Group, a Malta-based company. In 2018 it launched the Chiliz cryptocurrency and started working on its blockchain based platform Socios, geared to bring blockchain products to the traditional sporting arena.

Alexandre Dreyfus, the founder of Webcity, a tourism guilde company and a co-founder of Winamax, an online poker platform based in France, is the owner of Chiliz. The Chiliz’ blockchain application enables people to access its digital assets including CHZ and Fan tokens.

Chiliz cryptocurrency (CHZ)

As said above, there is a cryptocurrency called Chiliz (CHZ) which drives the international sporting and entertainment projects, Socios and Chiliz.net. The CHZ, with a maximum supply of 8.8 billion, exists on the ethereum network. Although it started off as an ERC20 token, the blockchain customized it to accommodate the BEP-20 token since Chiliz partnered with Binance.

Socios Protocol
Chiliz’s first product is Socios, an application which enables sports fanatics to acquire their favourite teams’ digital assets including Fan Tokens. In addition, the App allows sporting teams and clubs to engage with their fans in various ways such as participating in decision making through surveys and polls. The fans can also take part in match results predictions and post-match chats, giving vital feedback to the teams.

As mentioned before, Chiliz drives the Socios platform. Currently, many teams are affiliated to Socios. Juventus, the Italian soccer team, was the first one to partner with Socios. Ever since, over 160 teams and clubs are part of the Socios ecosystem.

Fan Token
The Fan token is one of Chiliz’s digital tokens. However, teams and clubs can issue their own branded Fan Tokens. Several clubs have created such tokens. For example, Arsenal Football Club has a token called AFC token and Atletico de Madrid has ATM token. It is important to note that there is a long list of team branded tokens.

In addition, Chiliz has a token launch pad where the teams can issue and distribute their tokens. Interestingly, there is also a feature which allows the fans to burn the tokens if they feel they are too many. This helps to increase the token values.

Conclusion

Chiliz is a blockchain and ecosystem whose vision is to promote sporting and entertainment activities through using the blockchain technology. It has its own protocol, Socios, which partners with sporting teams and clubs. The teams affiliated to Socios can engage and monetize their fan bases, increasing their revenue generation streams. Chiliz’s native token is CHZ which drives the whole ecosystem including Socios.

Author: Mashell C., Gate.io Researcher
This article represents only the views of the researcher and does not constitute any investment suggestions.
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