Chiliz Token is Red Hot! CHZ Pumps 7,000% In 3 Months Amid Big Sports Partnerships

March 15, 2021, 3:30 PM AEST (updated March 20, 2021)

Chiliz’s native token CHZ saw over 7,000 percent increase over the past 3 months, going from just US $0.012 to $0.87 between 13th December to 13th March 2021. It’s currently sitting at around $0.66.

The Chiliz token exchange platform powers the Sports Fan Tokens, which are digital assets that allow users to participate and vote in club polls, as well as provide access to VIP rewards, exclusive club and sponsor promotions.

This new sports token ecosystem could be a win-win for fans and clubs alike. With fans disconnected physically from their fandom, and this helps bridge that gap and engage more with their favourite sports. And for the clubs it’s essentially a new revenue stream.

Chiliz Token Exchange

Some facts:

  • Chiliz runs its own exchange. You can see the live token transactions on its blockchain explorer.
  • The Chiliz token ($CHZ) is both an ERC-20 utility token on the Ethereum blockchain and a BEP-2 token on Binance Chain.
  • There are 8,888,888,888 $CHZ (8.8 Billion) tokens in total supply, with 5.5 Billion in circulation.
  • Binance has invested directly into the Chiliz project. This might explain why the sports club tokens such as PSG/BAR got listed on Binance so quickly.
  • Alexandre Dreyfus is the founder and CEO of both Chiliz and Socios.com – watch his keynote speech.
  • The Chiliz blockchain relies on a Proof-of-Authority (PoA) side chain consensus mechanism for security (as opposed to PoW or PoS).

Socios App

Promoted as “the worlds first fan influence platform”, the Socios App is where you can buy the Official tokens of sports clubs that have partnered with them.

Socios Soccer Partnerships

The Socios app has some big names as Partners including the following Football (Soccer) teams.

It looks like a pretty amazing advertising opportunity for them, leveraging their brand, banners and TV coverage at sports events to promote their token.

NFTs is also fuelling the mania with more sports club NFTs expected to be released this year.

Future Socios Partnerships

Fan Token Offering Pre-Sale Partner Tokens via “Locker Rooms”

You can pre-buy your fan tokens through the Fan Token Offerings, although the term “locker rooms” might be a bit misleading to fans thinking they are actually getting to be in the locker room of their favourite sports people. That’s not the case. Instead, it’s basically a token pre-sale, opened before they have even sealed the deal with the sports clubs.

How the pre-sale works:

  • You buy the CHZ token and they lock it up for 120 days (giving you a 10% yield).
  • Should the potential partner club decide to launch on Socios.com, Locker One Tokens are transformed into official Fan Tokens at a 1:1 ratio.
  • Should the potential partner decide against launching a Fan Token, users who have purchased Locker One Tokens will receive a full refund of the $CHZ pledged to their Socios.com account once the 120 day window has elapsed or the Locker closes.

This provides the platform an indication of the demand for a sport/club while reserving the CHZ token (which in turn helps price support levels). It might also incentivise the company getting the deal over the line if they can demonstrate enough demand on the pre-sale of the potential Partner token.

$50 Million Investment to Expand Into the USA

“We head to the U.S. with a proven track record in generating millions of dollars of revenue for some of Europe’s biggest sporting organisations. In 2020, we shared more than $30 million with our partners, but this year we’re targeting a minimum of $60 million,” said Chiliz CEO Alexandre Dreyfus to Reuters.

There are rumours that the purpose of this investment is to venture into USA to form a partnership with the NFL. But that is yet to be seen.

Socios VISA Card

There are plans for Socios to launch a VISA card. You can apply for the waiting list. Perks include cashback in CHZ token and extra rewards when shopping at various sport shops.

Conclusions

The CHZ token has seen incredible gains over the past few months, but buying when FOMO peaks and price is at an all-time high usually doesn’t look like the best idea.

Personally, I think the token economy is coming, and this is just the start of it. At this pace, it seems pretty much everything will be tokenised soon.

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