What is Chiliz ($CHZ)?
We are at the cusp of the World Cup starting and things are getting exciting. During this time, you might have heard the price of Chiliz (CHZ) has shown substantial increase and wondering what this token is all about.
What is Chiliz?
Chiliz (CHZ) is a digital currency that is used by fans of sports teams around the world to purchase Fan Tokens on Socios.com. Chiliz was first founded in 2017, by Alexandre Dreyfus and launched on the Ethereum mainnet in 2018.
In 2019, socios.com stated operations and quickly partnered with the Italian football team Juventus and the Fan Token 'Juventus ($JUV)' was available on the platform. This was then followed by the teams Paris-Saint Germain, Atlético Madrid, Galatasaray, A.S. Roma and FC Barcelona. The national teams of Argentina and Portugal are also among the early partners. Top clubs in the English Premier League like Man City and Arsenal are also involved on the platform. The platform is not only for football clubs, teams from the NBA, Formula One and the UFC also have Fan Tokens on Socios. The platform gives fans of different sports and different teams the opportunity to connect with their favorite teams and vice versa.
How Does Chiliz ($CHZ) Work?
Sport teams around the world can partner-up with Chiliz to create a limited supply of Fan Tokens and then offer them to the teams' fans in the form of Initial Fan Token Offering. Fan will then use the native coin, $CHZ to purchase these Fan Tokens in first-come-first-serve bases.
Fans can use these Fan Tokens to participate in votes to make decision concerting their teams. The amount of influence the votes and decisions have on the teams are predetermine by the teams and can create a great sense of engagement with fans.
For Example fans of Juventus chose the song that is played every time the teams scores on socios. And Fans of Barcelona decided on which mural to hang on the team's dressing room.
$CHZ
$CHZ is an ERC-20 token that runs on the Ethereum based Chiliz blockchain. There are a total of 8,888,888,888 CHZ coins but 6,086,972,249 CHZ coins are currently in circulation. The distribution of the token is 15% for strategic acquisitions, 5% for the team, 7% for the seed investors, 3% for the advisory board, 15% for marketing, 20% for reserve and 35% for token sale.
At this moment, CHZ has a market cap around $1.5 billion and ranked around 30 when comparing with other coins' market cap. It is traded on most crypto exchanges including Binance and Coinbase.
The price of $CHZ is currently around $0.25. Over a year ago, the price has reached its all-time-high of $0.878 and its all-time-low was around 3 years ago with $0.004.
Currently, despite the market conditions, the token's price is performing well. The anticipation of the world Cup really fueled-up the price plus the fact that Chiliz founder, Alexandre Dreyfus offering to help FTX users that held $CHZ, aided the price movement.
Final Thoughts
Chiliz provide a unique and great opportunity for fans and sport teams to connect with each other. And using blockchain to do this really shows how valuable this technology is and other unique adoption should follow Chiliz's lead.
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Disclaimer
I am not a financial advisor. The information found here are for educational purposes and cite my personal opinion.