Chiliz (CHZ), the coin of sports fan token platform Socios could be in the midst of a pattern of declining peaks from a November high. Today (12 January) it has bounced back 6% but still has some way to go to break the cycle.
Its fundamentals still look solid as it continues to sign up new organisations. On 11 January Italian football's Lega Serie A has announced an official partnership with Socios.com in which becomes the official partner of Lega Serie A and main sponsor of the Supercoppa Frecciarossa and Coppa Italia Frecciarossa Finals.
It has also announced the basketball team, the New York Knicks and ice hockey team the New York Rangers have also signed up.
Earlier in December Socios announced it had signed 12 new agreements with teams in the US National Hockey League (NHL) - the biggest single daily total and taking the aggregate to over 100 and also signed of Sport Club Internacional, one of Brazil's leading football clubs.
The Chiliz utility cryptographic coin that powers the Socios.com platform is an Ethereum-based token. CHZ aims to use both cryptocurrency and blockchain-backed fan platforms as tools to empower sports and esports fans, transforming them from passive spectators into active influencers.
A novel application of this scalable, blockchain-based, fan token purchasing and utility infrastructure is the secure deployment of tokenised voting rights, executed via smart contracts on the platform.
What are the key benefits of CHZ?
Three benefits of the Chiliz-fueled blockchain are:
team management is turned into an entertainment proposition in its own right
voting rights are transformed into a trading and re-trading experience
it is promised that every fan’s voting decision will directly affect real-world sports and esports teams, as well as other partnered organisations
The ambition of the Socios platform, which was founded by Alexandre Dreyfus in 2018, is to convert all 3.24bn gamers worldwide into team-connected influencers with decision-making powers rather than just being spectators.
In other words, this radical form of engagement puts the fans in the driving seat – or as the official Socios white paper describes it as:
“A universal sports and esports ‘crowd-control’ engine, capable of giving fans voting rights to guide some of their favourite teams’ management and strategy decisions”.
What is the Chiliz (CHZ) coin?
The Chiliz token is classified as a virtual financial asset in accordance with the Maltese Virtual Financial Assets Act. Since the Socios fan engagement platform is built from the ground up on the Chiliz blockchain infrastructure, it uses CHZ as its exclusive on-platform currency. When fans acquire Chiliz tokens, they become part of the crowd-managed decision engine for whichever organisation they’ve chosen to support. The more fully a team immerses themselves in a Socios partnership, the more powerful their fan engagement proposition becomes.
Socios allows fans to purchase branded Fan Tokens from some of the biggest and most renowned sports teams in the world including FC Barcelona, Juventus, Paris Saint-Germain, AS Roma, Galatasaray and UFC.
Fans must purchase CHZ via a cryptocurrency exchange in order to acquire Fan Tokens. These tokens , which are specific to a team or club, are finite, digital assets that provide access to an encrypted ledger of voting and membership rights ownership.
Ownership offers fans the ability to participate in fan-led decisions through a mobile voting platform, as well as serving as a ticket into an exclusive inner circle of fans. The more tokens a fan holds and the 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. All Fan Tokens are minted using the Chiliz blockchain.
On 2 December it began trading on the Kraken exchange.
CHZ price analysis: Technical view
The CHZ coin was launched in October 2018 and achieved all-time high on 13 March 2021 of $0.89 – 225% above its October level. Only a week earlier, on 6 March 2021, CHZ had been trading at $0.118.
However, the price retreated to $0.4695 on 6 April 2021, climbing back up to $0.834 on 16 April 2021, according to the market data from CoinMarketCap. Then, the CHZ price consolidated and traded in the $0.20 to $0.40 range.
The price spike on 13 March 2021 can be attributed to Chiliz’s announcement earlier that month that it would invest $60m in the tokenisation of brands, media, entertainment (TV, music) and retail.
Demand for the CHZ coin jumped slightly at the end of October this year when the token was trading $0.64 on 30 October 2021, but this strong rebound was short-lived and the price fell by more than 50% thereafter.
As of 12 January, it is trading at around $0.27, and ranks 72nd in the list of cryptocurrencies by market capitalisation at $1.61bn, according to CoinMarketCap.
In line with CHZ price analysis, one reason that the price rebounded on 30 October 2021 could be because CHZ’s rally coincided with strong performance from other gaming-related cryptocurrencies, such as Decentraland’s MANA and Axie Infinity’s AXS.
The daily simple and exponential moving averages are giving buy signals, according to data from TradingView, while the relative strength index (RSI) is at 43.29 (12 January) and pulling away from "undervalued" territory.
Elevating everyday fan experience
The unique proposition of the Chiliz token is that it works to elevate everyday fan engagement experiences by empowering them to become influencers of any competitive entity. This, in turn, enables teams, leagues and events from any corner of the sports and esports world to monetise the fan demand for these voting rights through innovative blockchain-based tools.
Historically, fans have only been able to watch sports and not make any decisions that influence these organisations. The current sports and esports environment, for the most part, only offers transactional contact for fans since they pay for licensed products in a passive manner.
What Chiliz has done is tap into ongoing fan appetite for direct team connection outside of sporting broadcasts and live events. Direct fan engagement, as well as the monetisation of fans in both sports and esports, is the niche of the CHZ token.
Currently, there are almost no systems in place for influencing team decisions and there is certainly no way to transition from fan to active participant. But through the CHZ token, fans can gain a voice through direct investment in a specific team, reducing barriers to entry for average sports fans.
Also, Socio’s fan-controlled teams can operate in both existing sports and esports infrastructures – completely independently of conventional events, such as The English Premier League or La Liga.
But there’s even more. In other Chiliz coin news, AC Milan recently announced that it will be the first club to launch non-fungible tokens (NFTs) using Chiliz technology. Holders of the ACM Fan Token will be rewarded with limited edition NFTs, commemorating the key moment from a Serie A clash with AS Roma.
Can limited adoption pose risks for Chiliz coin?
One of the major risks for the CHZ token is that trying to improve fan engagement in both sports and esports is not only ongoing, but it is at its infancy.
Activating and monetising an audience through radical fan engagement is completely new territory – and Chiliz is a pioneer in this field. This means that investors need to exercise caution when investing in a relatively new project. Also, it’s worth bearing in mind that cryptocurrency is still an emerging and volatile market.
Chiliz price prediction: Buy, sell or hold?
In terms of a Chiliz (CHZ) coin price prediction, algorithm-based forecasting service Wallet Investor gives a positive forecast. Based on historical data, Wallet Investor sees the price going up to $0.58 in a year's time, reaching $1.85 in five years.
Digital Coin Price supports but in a slightly less bullish manner, a positive CHZ crypto forecast, expecting the token to average to $0.37 in 2022. The forecasting service sees CHZ growing to $0.56 by 2025 and eventually hitting $1.14 in 2029.
Please note, price predictions can be wrong. Forecasts shouldn’t be used as a substitute for your own research. Always conduct your own due diligence before investing. And never invest or trade money you cannot afford to lose.
Whether CHZ is a good investment for you depends on your personal circumstances and risk appetite. Cryptocurrencies are high-risk assets and highly volatile. You should do your own research, evaluate the level of risk you are prepared to accept before investing and never invest money you cannot afford to lose.
Note that predictions can be wrong. Forecasts shouldn’t be used as a substitute for your own research. Always conduct your own due diligence before investing, and never invest or trade money you cannot afford to lose.
However, please bear in mind that predictions can be wrong. Forecasts shouldn’t be used as a substitute for your own research. You should always conduct your own due diligence before investing. And never invest or trade money you cannot afford to lose.
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