Chiliz, A Crypto for Sports Fans?
Hermetic Science: Breaking Down Crypto Projects.
The aim of this study is to demystify cryptocurrency from what appears to be magic internet money into more simply a type of currency that uses distributed ledgers. What those ledgers enable users to do with cryptography (the science of hiding information) is the real magic.
**Disclaimer** This information should not be construed as financial advice, nor should you treat it as a substitute for the services of a certified financial advisor.
I. Crypto Summary
Chiliz is a cryptocurrency that gives sports fans a platform to engage in their respective club’s decisions and reward system. They do so by purchasing Fan Tokens through the CHZ coin and the Chiliz network. Chiliz goal is to become the official crypto exchange for sports franchises and their digital assets.
Fan Tokens can be purchased exclusively with CHZ, and they are built using the Chiliz blockchain infrastructure. Each sports team present on the Socios.com platform has its own Fan Token, and the tokens of different teams vary in value depending on the popularity of the team. The price of the Fan Tokens fluctuates, and token holders are free to trade them as they see fit. To maintain its exclusivity, each Fan Token is limited in number, meaning you can own a share of influence in the team.
II. Commercial Application
Socios.com is a platform powered by the CHZ coin and the Chiliz network. Socios.com and their mobile application will enable sports fan around the globe to influence their clubs by voting in various polls and to gain unique rewards by spending or winning tokens. By buying Fan Tokens powered by the Chiliz blockchain, token holders will also be able to for events and purchase exclusive merchandise. Chiliz aims to revolutionize fan engagement by offering alternative payment solutions for conventional products.
At the moment around 24 official partners are onboard with Chiliz network. Successful polls counting about 120 have been executed on its platform, and several participants have been rewarded. Other entertainment sectors are being considered, such as the recently announced PFL (Professional Fighters League) and UFC (Ultimate Fighting Championship).
III. Team
The Chiliz team consist of veteran developers and entrepreneurs who have a history in the field of crypto. The founder and CEO Alexander Dreyfus has 20 years of experience as a serial entrepreneur in the digital space building & maturing tech businesses. He was influential in the development of web based interactive tourism guides in the late 90’s with Webcity, and is co-founder of Winamax (the largest French online poker room) & Chilipoker.
Another big hitter is Sam Li, an experienced global sports industry executive who serves as an Advisor to the Chiliz team. He was Former Vice President at the NBA and Head of International for Sina Sports and Weibo Sports which is the largest sports digital media platform in China. His experience and expertise lies in global business strategy and sports partnerships, tailor made for the Chiliz platform.
The Chiliz team comprises of game industry experts who are well versed in gaming and tech. On Chiliz’s advisory panel are some of gaming’s most sought-after esports streamer such as Dr. DisRespect who at one point held the record for most viewed stream by a single streamer. Other iconic figures consist of Guillaume Patry, a former Starcraft Pro and 1999 World Champion; Nicolas Maurer, an esports entrepreneur and CEO of team Vitality, the most successful esports team in France; and Elky a famous poker star and former StarCraft phenomenon.
IV. Potential
There are several use cases where Socios/Chiliz can be utilized to tokenize fan engagement, and as they’re already generating profits for their sport franchise they’ve partnered with, Chiliz should have no problem in the future bringing on more brands/teams.
Chiliz interacts with European power houses like FC Barcelona, Manchester City, Juventus, Atletico de Madrid and Paris Saint-Germain. With over 100 sports teams on the platform, the partnerships that Chiliz is assembling are a big reason to be optimistic about the project because fundamentally blockchain projects are like any business with a demand to bring in revenue through their doors. A legitimate business that has the potential to go to the moon.
V. Risks
Investors might be reluctant to invest heavily in Chiliz at the moment as the space for sports and blockchain might be a bit too green for one company to dominate. Similar projects could prove to be more alluring as the crypto field, with Chiliz being a canary in the coal mine when it comes to crypto project that focus on monetizing fan engagement and merging fin-tech with the sports industry.
As for pricing, the CHZ token has in the past month of March seen a colossal 277% explosion in price due to their Fan tokens. Currently the digital asset is down and is facing some selling pressure. Typically when prices keep shooting up at dramatic rates in short periods, it’s usually not a sustainable trajectory and tends to be met with pullbacks. In the short term it’s likely that CHZ prices trend downwards.
VI. Conclusion
All things considered Chiliz is a solid cryptocurrency to invest in. The team is experienced and has signed on some huge partnerships, with a planned $50 million expansion to target US sports such as the NBA, NHL, and NFL. All of which bodes well for further adoption.
The CHZ coin not only has a unique use case with constant fan engagement but also has a long list of strong partnerships which almost guarantee that the CHZ price will continue to grow in the short and long term future. And unlike other alt-coins that offer little in logical utility and more on speculation, Chiliz has a clear and straightforward vision for users.
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