Chiliz Coin (CHZ) brings the power of blockchain technology to the sports industry. It is a disrupting project that is changing the way how a team interacts with its fanbase. Historically speaking, fans are the active spectators of the game with little to no involvement in the decision-making process.
This changes with Chiliz, it allows an active involvement of the fan base with a much wider use case for them and the teams in the sports industry. A true project that can actually revolutionize the mass adoption of cryptocurrency.
Having said that, it’s time to dig into the details of this project, understand its use case and future price prediction. Can Chiliz become a game-changer? Let’s find out –
What is Chiliz Project?
Chiliz is a decentralized blockchain project that helps bridge the gap between the sports team and its fanbase. It gives millions and billions of fans a direct voting power that can influence the key decision-making process of their favourite organization.
Chiliz was founded in the year 2016 by Alexandre Dreyfus but the ecosystem went live in 2019. In his previous endeavour, Alexandre was the co-founder of Winamax (the largest online poker room in France) and Chilipoker. With over 22 years of experience as a serial entrepreneur in the digital space, he founded Chiliz with a vision to turn the fans from mere spectators into influencers.
According to the team, there’s a gap in the current engagement services that connect fans with their supporting teams. The majority of such engagement comes from media houses, corporate sponsorships and affluent investors which sidelines an average fan’s influence on the key decision-making process.
Chiliz wanted to empower this area of sports, therefore created Chiliz tokenized fan voting platform i.e Socios.com (discussed later in the post) that fills this gap and helps fans participate in certain decision-making processes while creating a new revenue stream for the teams. A win-win situation for both fans and their teams.
Chiliz empower fans by turning them from spectators into influencers
What is Chiliz Coin CHZ?
Chiliz coin is the utility token and a digital currency of the Chiliz ecosystem. It is an ERC20 token (also BEP20) which means CHZ is created on the Ethereum blockchain.
The token allows the fans to purchase and hold Fan tokens issued by their favourite sporting team which will give the holders direct voting rights to influence certain key decisions.
Fan tokens are utility tokens bearing the name/logo of the partnering organization or team like $BAR is a fan token of Barcelone and $CITY is the fan token of Manchester City. Fans holding the respective tokens of the team or club will have direct voting rights in the decision-making process, feedback polls and important surveys organized by the respective teams.
Any user who wish to purchase the fan tokens will first have to buy Chiliz coins to initiate a transaction on its platform i.e Socios.com. Chiliz coin serves the following purpose –
- Fuels Socios.com
- Enables the purchase of Fan Tokens
- Facilitate direct voting rights
- Purchasing in-app games and collectibles i.e limited edition NFTs.
The total supply of Chiliz coin is capped at 8.8 billion
Chiliz runs on a multi-platform ecosystem. Each platform supports another and serves a different purpose.
Socios is the powerhouse of the Chiliz ecosystem. It is a platform where Fan Tokens are created and Chiliz coin is purchased to trade them for Fan Tokens. Socios also supports governance decisions and allow users to earn more rewards and purchase any amount of coins of their choice.
It is a dedicated cryptocurrency exchange for Chiliz Fan Tokens. Fans can buy, sell or hold their favourite Fan Token using the Chiliz.net exchange. The exchange also supports some famous crypto pairs like BTC/USDT, ETH/USDT.
Chiliz.com is the main website of the Chiliz ecosystem containing information related to Chiliz coin, social media links and the company details. You can find and read Chiliz Whitepaper on this website.
Fantokenrank presents the user with Fan Token’s price, market cap and related details, rank wise. You can check the standing of your purchased Fan Token and the daily movement of the price action live on this platform.
How does Chiliz Work?
The concept starts with the teams or the organization offering a pre-determined number of Fan Tokens. These tokens are then made live on Socios.com. Once live, fans have to purchase Chiliz coins and swap them for the respective Fan Token.
The team has to communicate the power of their Fan Tokens to the fans i.e how much influence will the tokens provide in the decision-making process and for what events. As explained before, these tokens can also be used in feedback polls and surveys that are conducted by the teams only for their loyal fans.
A fan has to hold a minimum of 1 Fan Token to be eligible for voting rights. Isn’t it wonderful? An average fan doesn’t have to shell out a bucket of money just to make his influence on the team’s decision-making process.
Paris Saint-Germain (PSG) is one of the first teams to offer Fan Tokens
Real World Use Case:
Chiliz started its business by focusing on European football clubs. After successful partnerships, the team expanded its footprints in PFA (Professional Fighter League).
It was in April 2021, an MMA fight took place based on the direct voting rights exercised by the fans who purchased PFL Fan Tokens. This was made possible when PFL announced a poll asking fans who purchased PFL tokens to decide who they wish to see fighting in the next event.
Chiliz Technical Architecture:
Socios.com is the powerhouse of the Chiliz ecosystem which is backed by blockchain technology. Chiliz coin $CHZ is the fuel of the system which is also an ERC20 token built on the Ethereum blockchain.
Chiliz architecture is built on two supporting blockchains –
- Ethereum public blockchain
- Socios permissioned sidechain
On one hand, anything related to the Chiliz token i.e transactions in $CHZ, creation and purchase of Fan Tokens, Fan funding and monetization of partner organizations take place on the Ethereum blockchain.
On the other hand, any activity dealing in Fan tokens like voting, trading, polls, surveys and the functioning of Socios marketplace takes place on the Socios permissioned sidechain.
Though being a permissioned blockchain makes the system centralized, it helps the network to scale as per requirement and also provides superior security. Socios platform is the bridge between Ethereum and its permissioned sidechain.
At a glance, CHZ is managed by Ethereum blockchain while Fan tokens are managed by Socios permissioned sidechain
How does Chiliz Monetize itself?
Chiliz follow a simple and straightforward method to monetise its platform which is quite similar to the tactics followed by the traditional online service portals like payment gateways etc. It monetizes its platform by following ways –
Marketplace Trading Fee:
A micro-fee is charged by the Socios platform every time there’s a P2P transaction between the fans on the network.
Sub-Feature Service Fee:
Any feature that is available on the Socios platform from a challenge to entertainment is subjected to provider fees on the network.
The key point to note in the monetization model is that the portion of the micro-fees is shared with the teams, clubs or leagues who are listed as official partners of the platform. Also, during the initial listing of the Fan Token, the majority of the money raised goes to the partnering team. Hence, making it a valuable stream of income for the onboarded teams.
Voting and decision making activities are kept free for the token holders
Chiliz Coin ICO:
Chiliz coin never had a public ICO. The CHZ token was issued in the private sale round at a price of just $0.0215 USD. It sold a total of 3 million CHZ tokens (approx) with an offered supply at 8.9 million. The team has no such plans to extend its token offering to the public via a new ICO round. The detailed distribution of $CHZ can be seen in the image shared below –
Voice to Fans:
Chiliz has a unique proposition “Teams listen, Fans Choose“. The model is successful in establishing a connect between the teams and their fans by literally giving them a license to become a partner in influencing the decision-making process of their favourite team. No other channel including mainstream media were able to match this level of interaction and engagement among fans and teams.
Revenue Stream for Partners:
Any team, club or league that list their tokens on the platform receives the majority of the revenue from the token sale along with a portion of the micro-fee which is charged by the platform every time there’s a transaction on the network.
It follows a sustainable Fan Engagement Transactional Model which doesn’t pursue fan engagement as a marketing tactic but offers real-time transactions as a mode of generating revenue.
Chiliz is actively working on building new relationships with the teams across the sports industry. It has already onboarded the top football teams including Barcelone, Manchester City, AC Milan and many more. Moreover, the project has expanded its reach into other sports.
The Chiliz team has already signed a lot of agreements including teams from Formula 1, UFC and NASCAR. This is just the tip of the iceberg since most of the information hasn’t been revealed by the company.
First Mover Advantage:
Chiliz is one of those blockchain projects that doesn’t have any competition in the market. Neither from the blockchain industry nor from the traditional industry. It has a big playing field and a huge expansion opportunity.
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Chilis ecosystem is not completely decentralized since Socios permissioned sidechain is a centralized blockchain that gives authority to the platform to control the sign-ins of the users on the platform which means if the company wants, it can block or hold the account of any user on its platform.
On the contrary, the sidechain also helps to secure the network and offer better scalability. Axie Infinity gaming and metaverse platform runs on similar architecture
An Emotional Mess:
Chiliz ecosystem is powered by the fanbase that calls themselves loyal members of the team. As such, it is quite imminent to observe the shift in emotions during key moments of the game that can leave indelible outcomes on the tokenomics of the Fan Tokens in question.
Imagine a group of frustrated fanbase came on board and started a selling spree as they disliked the act of their favourite team. This may lead to chaos in the system and may result in holders losing most of their investment in one go. Quite a debate if you ask me.
At the time of writing this article, Chiliz core platform i.e Socios is filled with a lot of bugs within the app leading to increased frustration among the fans who want to use the app to make a purchase of the Fan Token or use the in-app features. This can be observed in the number of bad reviews posted in the app review section of the play store.
Chiliz Coin Price:
Please check the latest Chiliz Coin price, shared below –
Chiliz Coin Price Prediction:
By all means, Chiliz is a game-changer. It is one of the projects that can literally revolutionize the mass adoption of cryptocurrency. The best part, it has merely scratched the surface, there’s a huge potential in the project which is yet to be explored by the team that includes the expansion of its application into new sports like Formula1, Baseball or even Cricket.
The model is proven and it can be replicated in any sport. Moreover, creating a win-win situation for both the fans and the teams makes it attractive in the first place. Talking about price prediction, the coin responded well to the bull run of 2021 that observed the price hitting the level close to $1 per token before falling back into the range of $0.20 and $0.40.
A new bull cycle is on us and the scope of growth for the Chiliz token looks much brighter than ever. With numerous partnerships and a healthy adoption rate, it is quite possible for the price to reach new highs and end up hitting the range between $2-$5 in the next few months.
Enjin Coin has partnered with Chiliz to launch limited edition Blockchain Collectibles for sports, powered by ERC1155 token
Where to buy Chiliz Coin?
The best place to purchase Chiliz coin is its own platform Socios.com. You can download the app, create an account and purchase Chiliz tokens by making a payment using your credit or debit card. The app also allows the user to purchase Fan Tokens.
Apart from the platform, the other place to purchase Chiliz tokens is on the Binance exchange (native Binance Coin BNB) which is also one of the core investors in this project. An Indian user can purchase Chiliz tokens on WazirX Exchange by depositing INR and converting it to USDT.
Is Chiliz Coin a Good Investment?
There’s no doubt in the project use case and how it uses the concept of micro-fees to power itself. The model is sustainable with an increasing adoption rate. It has successfully leapfrogged the mainstream media to win the trust of loyal fans and their respective teams.
Sports is a religion and the devotee will do anything to offer his insights to the management. Luckily, Chiliz has made it possible for him to communicate the message using its platform via Fan token.
The investment decision boils down to your belief in the company and its business model. If you have read the complete post, you must be clear about the system’s functioning using the power of blockchain technology.
Personally, I am bullish on Chiliz and its overall price action. However, it is not part of my crypto portfolio yet.
This covers my in-depth review of Chiliz Coin with price prediction. In the next post, I have an amazing gaming project to discuss by the name Decentraland MANA Coin and Audius Coin $AUDIO. If you’re a fan of blockchain technology then please do share this post on your social handles and educate everyone around you. Do remember to subscribe to my YouTube channel for more informative content, released every week.
Cryptocurrency is a highly volatile market. All the information shared in the post is for knowledge purpose only. By no means, it’s financial or investment advice. Readers are responsible for their own investment decisions and should only invest in cryptocurrency after proper research.
Paras is a blockchain writer & video creator at Katoch Tubes. In his free time, he loves watching space exploration documentaries & Hollywood movies.