RESPONSE TO AN ARTICLE BY OFF THE PITCH, 11.03.03
A football website today published an article about Chiliz and our CEO, Alex Dreyfus. We feel it is necessary and important to respond to the piece immediately because core parts of the article were based on erroneous data.
The piece made serious allegations that delays in the transfer of $CHZ to Korean advisors and a former Korean consultant were an attempt to influence its price from January 2020.
Following its publication, we have been in conversation with the journalist regarding the factual inaccuracies. Whilst some of them have since been removed, we remain concerned that the article does not reflect the truth of the matter.
For the sake of clarity and transparency, we wanted to highlight and share the correct data points.
The data in question relates to the number of CHZ in supply at the time.
In January 2020, the circulating supply of CHZ was 3.7 billion as opposed to the stated (50 times smaller) number of 75 million. CHZ is built on a blockchain — a public ledger — and therefore this number can be verified on publicly available records. What’s more, one month later, there were 4.5 billion CHZ in supply.
Clearly, given this scale of circulating supply, the awarding of CHZ to Korean advisors would not be responsible for driving any movement in price. Indeed, the number of CHZ awarded to the small number of advisors in question at the time was circa 0.4% of the overall number of CHZ.
Just like other currencies and cryptocurrencies, any change in the price of CHZ is predominantly driven by prevailing market conditions. With such a significant market capitalisation of CHZ, any reward structure for eligible employees has negligible impact on its price. This has been quite clearly evidenced over time through the awarding of numerous reward arrangements that have taken place and had no impact on price.
The article also made numerous other allegations against Chiliz which we are looking into as a matter of priority. We will take all necessary steps to demonstrate the rigour of our platforms and to correct false reports.