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What is Chiliz? | What you need to know about CHZ fan engagement platform tokens

By Mensholong Lepcha

Edited by Vanessa Kintu

10:00, 21 August 2022

Chiliz logo
Chiliz is a blockchain technology provider for the sport and entertainment industry

Chiliz (CHZ) has seen a strong rally in August 2022 after the announcement of a partnership deal with Spanish football club FC Barcelona.

The token rose to a four-month high on 18 August, having surged about 70% in the last one month. The token’s recent rally has helped it outperform larger cryptocurrencies like bitcoin (BTC) and ether (ETH).

If you’re interested in learning about the Chiliz ecosystem, read on to learn what the Chiliz coin is used for and the company’s deal with FC Barcelona.

What is Chiliz?

Chiliz (CHZ) is a blockchain technology provider for the sport and entertainment industry. Chiliz operates the fan token cryptocurrency platform Socios.com.

How does Chiliz work? The platform allows sporting organisations to design and mint tokens for their fans to buy, collect and trade.

Fan tokens are cryptocurrencies aimed at giving sports fans exclusive membership perks, voting rights on team decisions, merchandise rewards and access to official non-fungible tokens (NFT).

Sports teams have increasingly partnered with the likes of Chiliz and Socios.com to pursue different avenues for marketing and brand exposure while giving fans the chance to interact with their clubs in new ways.

Chiliz has partnered with football clubs including Paris-Saint Germain, Atlético de Madrid, FC Barcelona and Manchester City. 

The company has also partnered with motorsport companies, esports teams, National Basketball Association (NBA) teams, National Football League (NFL) clubs and the Ultimate Fighting Championship (UFC), among others.

“Fan Tokens are specific to a team or a club, and are a finite, digital asset that provides access to an encrypted, immutable ledger of voting and membership rights ownership. The tokenized fan-voting platform uses Fan Tokens, which operate on a separate permissioned side chain. The Fan Tokens are limited in number, and are fungible, meaning their ownership can be traded, and their price is driven by the market,” said Chiliz.

Chiliz also operates Chiliz.net, a cryptocurrency exchange for fan tokens.

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Who are the founders?

Alexandre Dreyfus is the founder and current CEO of Chiliz. In 2018, Chiliz raised over $66m through private placement. According to Dreyfus’ LinkedIn profile, Chiliz is a unit of the Malta-based Mediarex Group, a sport and entertainment organisation formed in 2006.

Dreyfus has also founded the city guide website Webcity.com and Winamax, an online poker and sports betting platform.

What is Chiliz coin used for?

CHZ coin is the native Chiliz cryptocurrency. According to its website, the fan influence and rewards platform Socios.com is powered by the CHZ token.

The CHZ token is both an Ethereum-based ERC-20 utility token as well as a BNB Smart Chain-based BEP-2 token.

After a token sale in the second quarter of 2018, Chiliz was launched in the third quarter of 2018, Chiliz’s whitepaper said. A total of 8.88 billion CHZ tokens were minted, of which about 34.5% (over 3.06 billion CHZ tokens) were allocated for private pre-sale and public sale hardcap, according to its whitepaper.

Of that, 5% of total supply was distributed to the Chiliz team and seed investors; 3% was issued to its advisory board, 15% was earmarked for marketing operations and strategic acquisitions; and 22.5% allocated for “user base reserve”, the Chiliz whitepaper showed.

CHZ coin’s primary use case is to allow sports fans to buy fan tokens on the Chiliz Exchange or the Socios platform. The token is listed on several cryptocurrency exchanges, including Coinbase, Binance, Crypto.com and Upbit.

Price history: CHZ token

The Chiliz cryptocurrency is the 47th largest cryptocurrency, with a market capitalisation of $1.19 bn, as of 19 August, according to CoinMarketCap

The maximum supply of CHZ tokens stands at 8.88 billion. As of 19 August, 68% of the total CHZ supply is in circulation.

BTC/USD

67,552.35 Price
-0.330% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

ETH/USD

3,448.29 Price
-1.560% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

DOGE/USD

0.14 Price
-2.170% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

XRP/USD

0.61 Price
+1.420% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

The CHZ coin hit an all-time high of $0.8915 on 13 March 2021. Since then it has been on a decline and is currently trading over 77% below its record level at about $0.19, as of 19 August 2022.

As of 19 August, CHZ has seen a strong rally of over 115% in the last 60 days, outperforming BTC and ETH’s rises of 10% and 62%, respectively, in the same period. The recent bounce helped the token hit a four-month high of $0.2297 on 18 August.

However, the CHZ token has not been able to erase year-to-date (YTD) negative returns for 2022. As of 19 August, the CHZ token is down over 32% YTD.

According to CoinMarketCap, CHZ token’s all-time low stands at $0.004, which it hit in September 2019.

Latest news: Chiliz acquires a stake in Barca Studios

On 1 August 2022, Chiliz announced that its fan engagement and rewards platform Socios.com had acquired a 24.5% stake in Spanish football club FC Barcelona’s digital content creation and distribution hub, Barca Studios, for $100m.

According to Chiliz, the deal made Socios FC Barcelona’s strategic technology partner to work on the club’s blockchain, NFT and digital assets, and Web3 strategies.

The CHZ token surged on news of the deal, gaining over 60% in August so far, as of 19 August 2022.

In February 2020, Socios and FC Barcelona signed a partnership to launch the $BAR fan token on Socios. In other news, Chiliz announced in June 2022 that users in Italy, Spain, France, Poland and the UK can purchase CHZ tokens via their Paypal account. 

In March 2022, football superstar Lionel Messi was named the Socios global brand ambassador.

In October 2021, NBA team the Los Angeles Lakers signed an official team sponsorship deal with Socios.

Looking forward, a layer-one blockchain network called Chiliz Chain 2.0 is expected to see its mainnet launch in the fourth quarter of 2022.

Forecast: Chiliz price prediction for 2022 and beyond

As of 19 August, CoinCodex’s one-month CHZ price prediction saw the token rising to $0.203.

For the longer term, algorithm-based website Wallet Investor’s CHZ crypto price prediction expected the token to trade at an average price of $0.0439 by the end of 2022.

Wallet Investor’s CHZ price prediction for 2025 expected the token to fall to an average price of $0.000998 by the end of 2025.

DigitalCoinPrice was bullish about the Chiliz cryptocurrency’s price performance for the long term, and expected the token to trade at an average price of $1.04 in 2030.

Note that analysts and algorithm-based Chiliz crypto price predictions can be wrong. Forecasts shouldn’t be used as a substitute for your own research. 

Always conduct your own due diligence. Your decision to trade or invest should depend on your risk tolerance, expertise in the market, portfolio size and investment goals. And never invest or trade money that you cannot afford to lose..

FAQs

How many Chiliz coins are there?

The maximum supply of CHZ tokens stands at 8.88 billion. As of 19 August, 68% of the total CHZ supply is in circulation.

Does Chiliz have a future?

The Chiliz cryptocurrency is the 47th largest cryptocurrency, with a market capitalisation of $1.19bn, as of 19 August, according to CoinMarketCap. It is impossible to say with certainty where the token will go in the future. Any investors interested in Chiliz should do their own research and come to their own conclusions about where the cryptocurrency could be heading.

What is the main utility of the CHZ token?

CHZ’s primary use case is to allow sports fans to buy fan tokens on the Chiliz Exchange and the Socios platform.

 

Markets in this article

BTC/USD
Bitcoin / USD
67552.35 USD
-225.1 -0.330%
ETH/USD
Ethereum / USD
3448.29 USD
-54.49 -1.560%
CHZ/USD
Chiliz / USD
0.07361 USD
-0.00358 -4.760%

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The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
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