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What Is Chiliz?
Chiliz is a blockchain that was created to provide a fan-engagement network for sports teams, especially football teams. At the moment, most fans are completely passive and have no option to actively participate in the decisions of their favourite teams. Chiliz aims to change that by tokenizing sports teams and letting fans own a part of their team.
Sporting events have a well-established market with millions of viewers. By giving fans the option to own a part of their team, sports clubs gain a new way to monetize, while their fans gain the opportunity to actively engage with their favourite teams. It’s a win-win.
Currently, there are more than 25 sports and e-sports organisations using Chiliz. They are mostly football teams, but a few basketball and e-sports teams also use it. The platform could be used for pretty much any kind of sport and by many more teams and clubs, meaning that the growth potential is absolutely massive. Some of the more popular teams currently on Chiliz are FC Barcelona, Juventus, AC Milan, OG, Paris Saint-Germain and Manchester City.
The platform can conveniently be accessed via the Socios.com app, which is available in the Google Play store. On the app, fans can buy the CHZ coin, which can in turn be used to buy fan tokens that can be used to vote on club decisions and buy club merchandise at a discount. Easy access to the platform makes means Chiliz may get adopted by more and more users.
Every sports club that uses Chiliz has its own fan token. A fan token is basically a digital share of a sports club. The owners have the right to participate, influence, and vote in club-focused surveys and polls.
It's important to keep in mind that the sports clubs themselves still choose which choices their fans can make for them, so they may only offer options in which they would be satisfied with either result. Club decisions can be anything from whether they should change their players' jersey design to whether they should take on a new player or not.
Fan tokens can also work as loyalty badges that give their owners a discount at a club;'s merchandise store. Tokens also give owners access to more exclusive merchandise, like a signed shirt from a particular player.
Fan tokens can also let fans profit from the success of their team. Some clubs destroy a percentage of their fan tokens each time they make a goal or win a match. This lowers the supply and therefore increases the value of the tokens being held by fans.
However, it is worth noting that most fan tokens are held by their teams and that they are only sold periodically. This means that the circulating supply could inflate rather rapidly. Most fan tokens have less than 6% of their total supply in circulation.
Of course, if Chiliz gets more popular, then the demand for fan tokens could outweigh their inflation, but that could take a long time. Fan tokens are not meant to be financial investments—they are intended to be entertainment-oriented.
Token burning does, however, enable placing bets in the form of swing trading. If you think a team will perform well in the near future, you could buy fan tokens and hopefully profit from the decreased supply.
The CHZ Coin
The CHZ coin is the main cryptocurrency used on the Chiliz blockchain, and it is what fuels its ecosystem. It is the currency that is used to trade fan tokens. The value of fan tokens is measured by CHZ in trading pairs.
Another use case for the coin that isn't available yet but will be in the near future is to buy tickets and VIP experiences with CHZ. Fans can also buy collectable-NFTs on the Chiliz network using CHZ. Such an NFT could be anything—for example, if a player makes their 100th goal, their club could issue a limited-edition NFT for that event that a fan might want to collect.
CHZ has a total max supply of 8.888.888.888 coins, but coins are frequently burned, which lowers the circulating supply. About 20% of the trading fees are destroyed, so if more people use CHZ, its demand should increase, and its supply should decrease.
The cheapest way to buy CHZ is via the Socios.com app, where it can also be used to buy fan tokens and merchandise.
Chiliz offers a way to unite crypto technology and NFTs with sports, which is a huge and established market. It has many features that are appealing to both fans and their favourite teams. The CHZ coin may gain more value as Chiliz becomes more widely adopted, so it may have the potential to be a good long-term investment.
This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.
© 2021 Krypton Currency