What is Chiliz (CHZ)? Your ultimate guide

Launched to bring blockchain-based tools into sports and entertainment, Chiliz (CHZ) is gaining traction in the market, but what is Chiliz?

Man pressing a key on a keyboard featuring the Chiliz (CHZ) logo                                 
What is Chiliz (CHZ)? A digital currency founded in 2018 – Photo: Shutterstock
                                

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Given the sheer number of crypto start-ups emerging every year, keeping in the know about all of them can be almost impossible. From differing blockchain technologies to consensus mechanisms to target sectors, each crypto start-up has its own unique list of qualities.

You may have never heard of Chiliz and be scratching your head asking, “What is Chiliz?” and “How does Chiliz work?” 

You’re in the right place. 

Let’s find out…

Chiliz explained

Founded in 2018 by Alexandre Dreyfus, Chiliz (CHZ) is a digital currency which powers the blockchain network behind the socios.com fan engagement platform. With over 20 years’ experience developing and growing web-based companies, when it came to Chiliz Dreyfus wanted to “work harder than ever on our mission to fully establish fan tokens as the ultimate fan engagement tool and as a powerful new revenue generator for the sports industry”.

With the aim of transforming fans from passive watchers to active influencers, token holders can vote for their favourite sports clubs as well as invest in new sports entities. This means users can have a say in decisions which will affect real-world teams and organisations. In turn, sports and entertainment entities can use blockchain tools to monetise and engage existing and new audiences.

What is the CHZ coin used for?

CHZ is a cryptocurrency which allows individuals to buy fan tokens. These tokens are fully fungible digital assets which ‘live’ on the Chiliz blockchain. Fan tokens and CHZ use the ERC20 token standard.

On socios.com, fans using CHZ can purchase branded fan tokens from notable teams including FC Barcelona, Juventus, Paris Saint-Germain, AS Roma, Galatasaray, Atlético de Madrid, OG, CAI and UFC. It is worth bearing in mind that fan tokens are team-specific, and each team only offers a finite supply. This limited supply of fan tokens are offered at an FTO (fan token offering). The tokens then provide  holders with access to an encrypted ledger of voting rights ownership.

Voting rights are maintained and secured via smart contracts.

The more tokens a fan accumulates and the more they vote, the more voting rights the fan has. The greater their stake becomes, the more access they have to different reward tiers and VIP benefits.

Chiliz review 

The maximum supply of CHZ coins is 8.8 billion. All total supply was minted at the Chiliz launch in 2018. There were no public sales aside as all coins were distributed between contributors.

There is a current circulating supply of 5.9 billion CHZ coins. CHZ was launched on the Ethereum blockchain, but later designed to also be compatible on the Binance blockchain.

Chiliz was ranked number 58 by Coinmarketcap and had a market capitalisation of $2.94bn on 17 November, which had slipped to 62 and $2.76bn respectively on 18 November.

Chiliz coin price 

Over the past year, Chiliz coin has skyrocketed. Throughout 2019 and 2020, the CHZ price plateaued below $0.02. In March 2021, however, the price began to surge hitting 0.77 during the April 2021 bull rush.

Despite dropping throughout the Summer of 2021, the price surged again through September and November 2021 to highs of $0.59 on 13 November. Chiliz coin has recently dropped again, however. As of 17 November, the price stands at $0.49.

Chiliz considers itself to be at approximately 10% of its potential. By the end of 2021 will have around 80-100 teams involved in its network, due to a highly impressive expansion of fan tokens.

There is a current circulating supply of 5.9 billion CHZ coins. The maximum supply of CHZ coin is 8.8 billion. 

The legality of Chiliz depends on where you live so it may be worth checking out what class Chiliz falls under in your jurisdiction and what the implications of this are.

It is worth noting that the regulatory landscape is constantly changing, so while it may be legal today in one jurisdiction, it may be rendered illegal at some point in the future.

As its website states: “It is difficult to predict how or whether regulatory authorities may apply existing regulation with respect to such technology and its applications, including the Socios.com platform and Chiliz. It is likewise difficult to predict how or whether legislatures or regulatory agencies may implement regulatory actions or changes to law and regulation affecting distributed ledger technology and its applications, including the Socios.com platform and the chiliz tokens.”

CHZ is available on some, but not all, crypto exchanges. 

While we don’t have it on Currency.com yet, we will let you know when we do. Just remember that cryptocurrencies are highly volatile, and prices can go down as well as up. Always remember to do your own research and never invest more money than you can afford to lose. 

Further reading

The material provided on this website is for information purposes only and should not be regarded as investment research or investment advice. Any opinion that may be provided on this page is a subjective point of view of the author and does not constitute a recommendation by Currency Com Bel LLC or its partners. We do not make any endorsements or warranty on the accuracy or completeness of the information that is provided on this page. By relying on the information on this page, you acknowledge that you are acting knowingly and independently and that you accept all the risks involved.
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