How many Chiliz coins are there? CHZ crypto circulation analysis
The utility token of Socios, a sport-powered cryptocurrency app, Chiliz (CHZ) plummeted more than 27% in the past week amid wider turbulence in the cryptocurrency markets driven by the FTX liquidity crunch and failed acquisition by Binance. The global cryptocurrency market capitalisation fell from a peak of $1.06tn on 5 November to $831bn five days later, a decline of nearly 22%.
How many chiliz coins are there and how will the latest meltdown influence the fate of the CHZ price and its holders? Here we take a look at the cryptocurrency’s tokenomics and ownership.
What is Chiliz and how does it work?
Alexandre Dreyfus launched the Chiliz project in 2018 to provide a platform for sports and entertainment enthusiasts to interact with their favourite teams, something that was only possible through watching games or buying merchandise.
The Chiliz team envisioned a future in which users could influence decisions through organisational voting, interact, purchase exclusive and rare non-fungible tokens (NFTs), and assist in monetisation.
Chiliz operates on the digital interactive platform Socios, based on the Chiliz side-chain technology powered by the Ethereum (ETH) blockchain. Socios is Chiliz's first consumer-facing platform, allowing sports fans to interact with teams and earn unique advantages and incentives.
Each team that collaborates with Chiliz can tailor the real-world experiences its Fan Tokens deliver to holders. Fan Tokens may also give holders influence over a club’s choices such as new uniform designs, celebration songs, stadium names and so on.
The CHZ coin is the native cryptocurrency of Chiliz. It is a BEP2 token on the Binance Smart Chain (BSC) and an ERC20 token on the Ethereum blockchain. CHZ provides sports and esports fans with direct voting power over their favourite football teams. Fans use CHZ to acquire fan tokens on the Socios.com platform, which allows them to exercise their voting rights and transforms them from passive spectators into active decision-makers.
Aside from CHZ, Chiliz has two more tokens:
Fan tokens
Fan tokens are digital assets developed on the Chiliz blockchain that can be acquired using the Socios app. Holders have unique voting privileges in team polls, which help in fan-related decisions.
Locker tokens
When sports teams want to join Chiliz, they must submit an application. Following approval, a locker is established in which investors can store their CHZ tokens for four months before exchanging them for locker tokens.
What is your sentiment on CHZ/USD?
How many chiliz coins are there: CHZ tokenomics
According to price data from CoinMarketCap, as of 11 November, CHZ has surged more than 700% from launch. At the time of writing, CHZ was trading at $0.225, with a maximum supply of 8.88 billion tokens.
Maximum supply is the capped quantity of coins or tokens that will ever be generated in total. This implies that once the maximum supply has been achieved, no additional coins will be mined or created.
Based on the initial allocation criteria described in the whitepaper, 34.5% of that total, or 3.06 billion CHZ, were sold via token sales and pre-sales. Approximately 22.5%, or 2 billion tokens, were set aside for users and other small investors.
Additionally, the founding team set aside 15%, or 1.33 billion tokens, for marketing operations and strategic acquisitions.
Team members and seed investors each received 444.44 CHZ, representing 10% of the maximum supply. The six-member Chilliz advisory board received 266.66 million tokens, representing 3% of the total supply.
How many chiliz coins are available? CoinMarketCap's tokenomics data indicated that 6.01 billion tokens were in circulation, as of 11 November.
Additionally, Chiliz has incorporated a burn mechanism. Based on the burn system, 20% of the net trading fees received on the Chiliz exchange, 10% of the net revenues from fan token offerings, and 20% of the net proceeds from NFTs issued on the Chiliz exchange will be burned.
Token burning removes coins from circulation, permanently reducing the cryptocurrency's total supply. This serves to create scarcity and boost the value of remaining coins.
CHZ whales and top holders
According to CoinCarp data, as of 11 November, there were 158,507 CHZ token holders, up 3.4% from 152,282 on 11 October, indicating a modest rise in token holders over one month. The top 10 holders held 65.58% of the CHZ supply, while the top 100 held 84.32%.
Chiliz was the biggest wallet holder of CHZ, holding 32.4% of the circulating supply, or 2.88 billion tokens. The biggest cryptocurrency exchange in the world, Binance, held 23.57% of CHZ's current supply, or around 2.096 billion tokens via a number of wallets.
OKEx, another prominent cryptocurrency exchange, had approximately 131 million CHZ coins, or 1.47% of the CHZ supply. In addition, the troubled exchange FTX controlled about 37 million tokens, or around 0.42% of the total number of chiliz coins.
There were more wallets that contained a large number of CHZ tokens apart from the exchanges. Since crypto wallets are anonymous, the identities of these CHZ whales were hidden to the public. Depending on the original allocation criteria, they may include CHZ investors, staff or developers.
Chiliz coin news and key milestones
Chiliz has undergone several key milestones that may affect the token’s performance in the future, sparking or discouraging investor sentiment. One of these events is the launch of the new chain.
The project launched Chiliz Chain 2.0 on 9 November to provide quicker transactions per second (TPS) and cheaper transaction fees than Ethereum. The Chiliz token operates as an ERC-20 token on the Ethereum blockchain, while Fan Tokens are issued on Chiliz Chain, an ethereum virtual machine (EVM) compatible blockchain.
The new Chiliz Chain runs on the proof-of-staked-authority (PoSA) consensus mechanism that provides optimal scalability, governance structure, staking, and speed while enhancing the utility of CHZ and Fan Tokens and increasing Web3 prospects across the sports and entertainment sector. Meanwhile, Chiliz will maintain its EVM compatibility to provide interoperability across chains.
In other news, in September Chiliz announced that it had become the official sponsor of the Ballon d'Or Awards for 2022. Since its inception 66 years ago, the Ballon d'Or Awards have been one of the most prestigious events in football. The ceremony took place on October 17 at the Théatre du Chatelet in Paris.
The bottom line
While knowing key info about the Chiliz tokenomics and circulating supply is important for accessing the project’s health, it shouldn’t substitute your own research. You should always conduct your own due diligence before trading, looking at the latest news,technical and fundamental analysis, and a wide range of analysts’ opinions before making any trading decision.
Keep in mind that past performance is no guarantee of future returns. And never trade or invest money that you cannot afford to lose.
FAQs
How many chiliz coins are in circulation?
As of 11 November, there was a reported circulating supply of 6.01 billion CHZ tokens, out of a total supply of 8.88 billion, according to CoinMarketCap.
Who owns the most chiliz coins?
According to CoinCarp data, as of 11 November, the Chiliz project held approximately 2.88 billion CHZ tokens, or 32.4% of the CHZ supply, making it the largest CHZ holder.
How many Chiliz coins are mined every year?
All CHZ tokens have already been mined, but not all are currently in circulation.
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