Many previously neglected projects have found some traction in the blockchain world because of the recent enthusiasm in Non-Fungible Tokens (NFTs), a special type of cryptographic token representing something unique. Chiliz, a project focused on the tokenization of sports teams, is one of these projects. This Chiliz review is intended to help investors select an exchange platform from the several options available.
With its many platforms and its native coin, CHZ is constructing the world’s first blockchain-powered fan interaction and incentives ecosystem. Chiliz allows fans to buy and exchange Fan Tokens and vote in surveys and polls related to their favorite teams.
Since 2016, various variants of the current ‘product idea’ have been incubating. Finally, in early 2018, active activity, including product and team development, began. They raised $66 million, through a private placement, to fund the development of Socios.com, the world’s first fan interaction and incentives app.
Chiliz has been actively growing for almost two years. In October 2018, 8.8 billion $CHZ was minted, and after being distributed to early donors, $CHZ was publicly listed on major cryptocurrency exchanges like Binance, BitMEX, and KuCoin. Socios.com started in late December 2019; Juventus was the first team to issue Fan Tokens ($JUV), conduct a Fan Token Offering, and allow fans to vote on the blockchain.
Chiliz now employs over 80 people from 29 different countries. Alongside a Malta headquarters, Chiliz has a development office in Lyon (France), active operations in Turkey, Spain, South Korea and Brazil, and team members in the United Kingdom and Sweden.
They have added 19 Official Partners to Socios.com, conducted Fan Token Offerings for 11 of those partners, conducted over 120 surveys, and awarded hundreds of fans all over the world. They are working on expanding their list of ‘tokenized’ platform partners to include additional football and esports clubs, with the goal of adding 100s more over the next several years. They also plan to integrate more sports and entertainment verticals, including the recently established PFL, to investigate the possibility of tokenizing other sports properties.
|Trading Platform||Web-based and application|
What is Chiliz?
Chiliz is a cryptocurrency that may be used to purchase blockchain-based products and services aimed at general people. Chiliz’s mission is to enrich daily experiences – fan interactions in entertainment, alternative payment methods for traditional items, and so on. Chiliz delivers blockchain-based technologies to assist sports and entertainment businesses in engaging and monetizing their consumers.
$CHZ fuels Socios.com, the first customer product and the first scalable, mainstream marketplace for fans to purchase tokenized voting rights in their favorite teams. Numerous football clubs and esports teams worldwide are among the app’s partners; some of them are FC Barcelona, Galatasaray, Team Heretics, Atlético de Madrid, UFC, Apollon Limassol, AS Roma, Juventus, Istanbul Başakşehir and PFL. Socios.com enables sports clubs to issue digital assets dubbed ‘Fan Tokens’ via ‘Fan Token Offerings’ on the Chiliz blockchain.
As the platform’s currency, fans may purchase these branded Fan Tokens; this empowers users to vote in polls published on the app by its partners. Additionally, ownership entitles fans to special incentives and spectacular experiences, as well as gamification, social connection, and leaderboard elements they roll out throughout 2020 and beyond. On Socios.com’s Proof of Authority side chain, Fan Tokens are emitted. On the PoA side chain, all fan influence polls are executed as smart contracts.
Chiliz Blockchain Campus is an accelerator and industry center that connects some of the major stakeholders in the blockchain sector, from Asia and Europe, with other growing blockchain entrepreneurs. The campus is wholly owned by Chiliz and is located on-site in Malta. This small European nation, dubbed “The Blockchain Island,” is a pioneer in adopting a government-level framework for regulating blockchain firms and the financial dynamics that drive them in Europe.
CHILIZ Trading Services
Chiliz is an easily accessible platform. Its mobile app is available on both iOS and Android. At any trading level, Chiliz is relatable. There are presently 42 Chiliz exchanges where you can buy, sell, and trade Chiliz (CHZ), with a 24-hour trading volume of $528.81 million. Chiliz may be purchased using fiat currencies such as USD, EUR, and KRW. They provide 50 trading pairs, with the most popular being ETH/USDT, BTC/USDT, and ETH/BTC.
The exchange is graded “C,”. This is equivalent to “Fair.” They are ranked #98 in terms of openness and volume among 433 exchanges. Chiliz accounts for the entirety of the cryptosphere’s volume as indexed. They are a cryptocurrency-exclusive exchange. Additionally, you may purchase Chiliz with Tether, Binance USD, or QCash stable coins.
The CHZ coin was sold in a private placement for $0.0215. In that private placement, around 3 million of the total quantity of 8.9 million tokens were sold, and the management maintains that there are no plans for an ICO in the future.
The token stayed depressed for most of the period following its debut, trading in a band of $0.01 to $0.015. However, that came to an end in 2021, when the token became engulfed in the broader cryptocurrency market boom, reaching an all-time high of $0.8915 on March 13, 2021.
Since then, the token has fallen far from its highs and is now trading at a relatively modest $0.2551 (as of May 25, 2021). Yes, it is still far higher than the majority of the token’s price throughout its life, but it is still in a downtrend from its all-time high and it might fall dramatically from here. The CHZ Token is solely used to power Socios.com. On this customer-directed website, fans can use their Fan Tokens to participate in polls and surveys, and be rewarded for active participation.
To participate in Fan Token Offerings (FTO), the inaugural sale of Fan Tokens and Socios Locker Room, CHZ Tokens, are necessary. The CHZ Token has high liquidity and is traded on some of the world’s largest and most well-known exchanges, including Binance, Bitpanda, HBTC, etc.
CHZ is designed to deflate over time, having the following burn mechanism in place:
- 20percent of the Net Trading Fees earned on the chiliz.net exchange in $CHZ will be burned.
- 10percent of the net proceeds of the Fan Token Offerings (FTOs) from the Chiliz.net platform collected in $CHZ will be burned, plus a three-month lock on the collected $CHZ.
- 20percent of the Net Proceeds of NFTs and Collectibles issued by $CHZ will be burned.
They have not yet set transaction fees since they are still determining the proper fee-to-transaction ratios to provide a positive customer experience while still maintaining sustainable income. Yet, they are aware that these costs will be at the single-digit percent level, at most. Therefore, fees collected from Chiliz platform transactions will be done at POS/POT (Point of Sale or Point of Trade, for P2P transactions) and deducted as a percentage of every $CHZ utilized and collected by the platform.
Market encroachment Chiliz’s collaboration with several organizations has benefited Chiliz. As a result, the firm has formed several strategic alliances in both conventional sports and e-sports, and various countries. For example, the Maltese government, Playtech (a prominent global supplier of online gaming services), well-known figures in the e-sports business, and Southeast Asia’s leading digital marketing professionals all support the initiative. This kind of collaboration makes it easier for the initiative to break into the worldwide e-sports industry.
Completely trustworthy information and completely transparent transactions are what a good exchange platform would offer its clients. The exchange is sponsored by a credible EU-registered firm and collaborates with European banks. Furthermore, its operations are closely monitored by regulators. As a result, the information on the accounts have been thoroughly validated and are publicly available. In the ICO market, operational openness and community confidence are critical.
The User Interface
Chiliz’s platform has been created so that both experienced traders and newcomers will find it easy to use. The page’s current layout includes a bar on the side that allows the user convenient access to other windows, including the trade history window. In the center of the user interface is a trading chart integrated with a trading video, well-known for its updated trade features. Clients may easily utilize the chart to set order limits or cancel orders at a certain price level.
The book is located just under the chart and may be used by users to compare prices and bids. A slider that calculates and shows the liquidation price may also be used to change trade volume. By providing many means for entering and exiting a transaction, the Chiliz platform puts its clients in control of their holdings. Furthermore, depending on the order type the user deems ideal for their desired purpose, the user can pick from several order types. In general, Chiliz has a fairly basic user interface that both pros and beginners would find easy to use.
How secure is Chiliz?
Chiliz is a private cryptocurrency network that uses the Proof-of-Authority consensus mechanism. It varies from the widely used Proof-of-Work algorithm in that it has a lower computational intensity and uses less energy. Furthermore, the PoA technique ensures shorter transaction confirmation waits. This guarantees that the entire system runs more quickly.
All information has been converted into data in today’s globalized society and is saved either in the cloud or on a hard disk. However, if you believe your document, information, or secrets are secure, and you are calm, you are most certainly on the verge of losing all you have worked so hard for. There are fraudsters, hackers, and software glitches known as viruses that may cause you to lose your data in the blink of an eye. This is why businesses or industries prioritize system security above anything else.
Another essential factor many traders consider when selecting an exchange is the exchange’s customer support. Trading in the cryptocurrency market is a challenging endeavor in and of itself. Thus, investors and traders need all the help they can get when trading.
Most significantly, this help is especially vital when unanticipated circumstances make trading more difficult. In situations like these, traders and investors turn to their exchange platform for help, and failing to get such help is damaging to traders’ trading outcomes and experience. The failure of an exchange platform to provide the necessary support and assistance to suit the demands of traders negates the exchange’s relevance.
The Chiliz Exchange has developed a cryptocurrency platform that promotes user experience and assistance. The site is easy to browse for new users the first time they utilize it. There is a FAQ section that addresses new investors’ concerns. In addition, there is a help desk for clients and partners. Live chat, Telegram chat, and social media giveaways are some examples. Customer support is handled by experienced specialists available 24 hours a day, seven days a week.
Two Factor Authentication (2FA) is a security method in which the user gives two distinct authentication factors to validate their identity, therefore protecting their credentials and resources. Two-factor authentication consists of Email Verification, Phone Verification, and Google Authentication.
After enabling two-factor authentication, accessing your account or making a withdrawal will need your password, verification codes, and a six-digit number provided by the Google Authenticator App (GA). When you join up using your email address, you can only link your phone number and Google account. Likewise, if you registered using your phone, you can only link your email address and Google Authentication.
Investors and Partnerships
Long-term adoption and, therefore, positive development is predicated on partnerships. For example, Chillz has well-established collaborations with soccer clubs. The exclusive partnerships help clubs by providing new revenue streams, as well as increasing fan involvement.
Its current partnerships include FC Barcelona, Galatasaray, OG, Paris Saint-Germain, Apollon Limassol, Atlético Madrid, AS Roma, Team Heretics, UFC, Trabzonspor, Juventus Turin, A.C. Milan, Novara Calcio, Sint-Truidense V.V., PFL, İstanbul Başakşehir, Natus Vincere, Team Alliance, Universidad de Chile, and BSC Young Boys.
Chiliz benefits from the international presence of these clubs significantly. Despite this, the tale is far from over. Chiliz has targeted additional top clubs. Also, this project has existing partnerships with big clubs, so forming other alliances should be easy.
CHZ Fans Token
Chiliz Coin is a cryptocurrency project aimed at tokenizing the sports industry by giving sports and esports enthusiasts the ability to participate in the organization of sport teams. This cryptocurrency is designed on the Ethereum blockchain and utilizes smart contracts to allow sports fans cast secure votes and surveys. Trades may be made in several combinations on the most significant exchanges. A popular way for fans to obtain Fan Tokens is by using CHZ. The Socios platform is a sports fan community application for teams who want their supporters to have a say in their team’s decisions. Teams can establish their Fan Tokens on the site. The more tokens you have, the more valuable your vote is.
Fan tokens may also be used to purchase limited-edition merchandise and have face-to-face interactions with artists. In addition, individual token holders have the opportunity to profit from special offers and bonuses on behalf of their favorite team.
The top teams have their own “Fan Tokens” on FC Barcelona, Juventus, Paris Saint-Germain, Atletico de Madrid, Galatasaray, and AS Roma. The creators of Chiliz and Socios believe that as the number of teams on the platform increases, new teams will join in the future.
More and more sports teams join the Socios platform, and, as a result, fans and traders are more hopeful. With a fast-increasing ecosystem in place, the framework for success appears solid. The club has an extensive collection of tools, great business development, a market ripe for growth, and top-notch team skills that all combine to excite fans and bring new commercial opportunities. This last bit about Chiliz has two key benefits. First, their token has a practical purpose, and they are adding more practical applications for it. Secondly, investors should exercise caution since the price of the CHZ token just rose to an all-time high, and it remains in a downtrend. Because of the volatility in the cryptocurrency markets, it may be best to wait until things have settled before becoming involved.
It is also a positive sign for Socio and Chilliz in the long run, because the team is developing value by onboarding new partners to the platform. However, when you consider the fact that the platform has not yet touched any sport that is undeveloped, it becomes clear that untapped potential is abundant.
A new Fan Token is minted whenever a new Fan Token is issued, with the associated CHZ being withdrawn from circulation. As a result, there is less CHZ in circulation, and the surviving Fan Tokens have a higher value. While the initiative develops momentum, it seems generally optimistic. If the project and token’s value can continue to expand, the addition of new popular sports teams will certainly help.