Chiliz(CHZ)

Chiliz is a leading digital currency for sports and entertainment which runs on the Ethereum blockchain and Binance Smart Chain (BSC). Founded by current CEO, Alexandre Dreyfus in 2018, the company is part of the Malta-based Mediarex Group which was established back in 2012. The platform has partnered with some of the biggest sports and e-sports teams, such as AC Milan, Manchester City, NAVI, PSG, and many more. Chiliz has also brought on board some well-known personalities in the sports and gaming industry such as Sam Li, former Vice President (VP) of the NBA, Nicolas Maurer, CEO of e-sports team Vitality, and Dr. DisRespect to help promote the platform's native CHZ cryptocurrency while lending expertise in their respective fields.  

Leveraging blockchain technology, Chiliz provides a platform where fans can engage directly with their favorite sports teams. Fans can purchase fan tokens for their favorite team through Socios.com using their CHZ tokens. Fan tokens give their respective holders the ability to vote on decisions presented by the club, such as starting lineups, new kit designs, stadium names, and much more. 

Fan tokens give sports enthusiasts the chance to have more influence and presence over the operations and decisions of their favorite teams. They also give sports franchises who partner with Chiliz the opportunity to customize the real-world experiences their fan tokens provide while allowing them to monetize their audiences in new and more creative ways. 

In 2018 Chiliz hosted a private token sale, raising just above $66 million with Binance, OK Blockchain Capital, and FBG Capital being the top participants. 

CHZ price

According to our CHZ/USD live price chart, the token started trading in 2020 with a high of $0.007 on January 1, and went up to $0.02 by February 13. However, the Coronavirus pandemic throttled the global economy and crypto markets in mid-February with BTC dropping as low as $3,700 and CHZ price falling to $0.003.

But as the stock market started to show signs of recovery in April, the crypto market followed its lead with the price of CHZ going from $0.006 in March 2020 to around $0.022 in August 2020 — registering a gain of 269%. Nonetheless, the token witnessed another drop in Q3 of 2020, before setting in motion a new rally when it went from $0.01 on Nov. 6, 2020 to $0.03 on Dec. 29, 2020 — marking a gain of 210% and finally breaking the $0.02 resistance mark. 

CHZ price saw significant gains in Q1 of 2021 when it went from $0.02 on Jan. 16 to $0.9 on March. 12, registering a whopping 4900%+ gain in just 55 days. This was an all-time high for CHZ putting the token's fully diluted valuation at $7.9 billion. However, this rally came to an end as the crypto market was hit by a severe crash in May 2021, shifting the market sentiment in favor of bears. The token saw significant losses as it dipped down to around $0.16. 

Chiliz cryptocurrency continued this turbulent ride through the rest of the year, recording two noteworthy spikes in Autumn, $0.4 on Sept. 6, 2021, and $0.6 on Oct. 30, 2021, before the crypto market crashed again and continued to plummet as it entered 2022. 

The token continues to hold a decent spot in the cryptocurrency market, ranking in the top 100 while trading just above the $0.1 mark.

How CHZ works

The CHZ token is unique in the sense that it operates both as an ERC-20 token on the Ethereum blockchain and as a BEP-2 token on the Binance Smart Chain (BSC). CHZ powers Socios.com where users can buy fan tokens of their favorite teams by spending their Chiliz tokens. However, these fan tokens are first verified and minted on the Socios sidechain which uses the proof-of-authority (PoA) consensus protocol. 

Proof-of-authority is a reputation-based consensus protocol that focuses on providing a practical and efficient solution for blockchain networks. Unlike proof-of-work (PoW) and proof-of-stake (PoS) where users stake tokens to become validators, PoA leverages the reputation of validators. This means each node/validator undergoes a complete identity disclosure and is selected as a trustworthy entity randomly. The algorithm relies on a small number of block validators who have proven their authority to verify transactions on the blockchain, making the system highly efficient, scalable, and robust with very little fault tolerance.  

While this allows for faster transaction processing, PoA has been adopted by very few blockchains like VeChain (VET) and Energy Web Token (EWT), due to the lack of decentralization it offers.

Multiple sports and entertainment organizations around the world have held Fan Token Offerings (FTOs) for their loyal fans, like FC Barcelona, Golden State Warriors, and many more. Each organization has the ability to customize its fan tokens' price, supply, rewards, and the options the fan token offers. These tokens can be used for meet and greet, voting on the future of the team, or as a collectible.

CHZ news, updates, and highlights

On Feb. 13, 2020, FC Barcelona — one of the biggest football clubs — announced that it would be diving into crypto, partnering with Chiliz blockchain to create its own Ethereum-based Barca fan token (BAR). The Spanish powerhouse said that Barca fan tokens would be available worldwide through a Fan Token Offering (FTO). The announcement was made at Barcelona's home stadium, Camp Nou, and was attended by Josep Pont, Board of Directors member and head of the Commercial Area of FC Barcelona, and Alexandre Dreyfus, CEO of Chiliz. 

UFC announced through its website on May 6, 2020, that it would be partnering with leading FinTech blockchain company Chiliz to launch its official Mixed Martial Arts (MMA) fan token. Minted on the Chiliz blockchain the token would have a maximum supply of 20 million, enabling fans the opportunity to access exclusive content, VIP rewards, fan voting, and more. Alexandre Dreyfus said, “...This exciting partnership is the first major example of how we can use blockchain technology to create incredible engagement opportunities not only for our Fan Token partners but for other leading enterprises, too.”

On July 22, 2021, Inter Milan, one of the top Italian clubs in the Seria A league, confirmed that they would be partnering with Chiliz for their 2021/2022 season. Through this partnership, the Italian club will promote its INTER fan token, which is limited to 1 million tokens and is expected to launch soon. The INTER fan token will allow Inter Milan’s supporters to interact with the club on a more personal level and become part of the club's vibrant community on Socios.com.

Frequently asked questions about CHZ

• Can you mine or stake CHZ?

You cannot mine or stake CHZ since it uses the proof-of-authority consensus mechanism. However, there are various platforms where you can stake your CHZ tokens to earn passive income. 

• What are some of the best CHZ wallets?

According to the Chiliz website, the company recommends ZenGo or TrustWallet if you are looking for a software wallet that you can also use on your phone. If you are more interested in cold wallets then Ledger Nano S and Trezor One are excellent options.

• What can you do with CHZ?

You can use your CHZ tokens to buy fan tokens for your favorite team or organization from the Socios.com platform. You can also trade them against other cryptocurrencies like BTC, ETH, and USDT on various custodial exchanges. 

• How to buy CHZ?

You can buy CHZ against CHZ/BTC, CHZ/ETH, and CHZ/USDT trading pairs on exchanges like Binance, HitBTC, and MEXC, or by using fiat currency with on-ramp services.