Chiliz up 880% in one month – Is it the ultimate combo of NFTs and sports?

  • The Ethereum-based CHZ token records huge gains in one month due to Chiliz’s gamification model.
  • Fans will be able to create tokens for their teams with a decreasing supply via a burn mechanism.

Analyst Coin Bureau has taken a keen look at the Chiliz (CHZ) platform and its combination of NFTs with esports. The analyst uploaded a YouTube video calling Chiliz’s ecosystem one of the “most interesting” currently. With an 8,805% one-year and 880% month rally, token CHZ presents good opportunities for investors.

Chiliz is a platform that aims to allow sports fans to influence decisions about their favorite teams and give them tools to interact with players. In that way, team management could gain a new source of revenue by monetizing fan interest through empowering them to vote.

The Chiliz ecosystem is composed of Socios, a platform for minting tokens that give “loyalty cards,” unique experiences, and voting power to fans. In addition, it allows users to buy Chiliz tokens with fiat money and then exchange them for “fan tokens”. For the latter, there are also “reward tokens” that give discounts and other deals. The analyst noted:

What is interesting to me is that this model of gamification can be replicated in almost any sport. So the potential here is truly massive. I’m thinking of sports like Formula 1, Cricket, and the NFL.

The second element of the Chiliz ecosystem is its exchange. Via this platform, users can trade different pairs of tokens with 0% commissions and between 0.2% and 0.6% for sales commissions. Chiliz has managed to obtain important partnerships with soccer teams such as Barcelona, Paris Saint Germain, Atlético Madrid, among others.

Tokenomics of the Chiliz ecosystem

In addition to these benefits, fans and participants of the Chiliz ecosystem have strong tokenomics and features that add more earning potential. The platform has a product called Fan Token Offering.

This fundraising mechanism, the analyst explained, allows new partners to be launched on the Socios platform. Thus, users can buy these Socios’ tokens for a fixed price. According to the analyst, the demand for this kind of token “is high” generating up to $30 million for Chiliz partners in 2020.

Fans tokens have also integrated a burn mechanism to reduce the supply of tokens relative to team performance. If a team performs well, a part of the token is burned and the supply is reduced. This mechanism is intended to benefit their holders. The analyst stated:

It is true that soccer fans are more trivial than the crypto community and the demand for these tokens has been validated (…). Only a percentage of the total supply of the tokens is in circulation, only 6% of the 20 million Paris Saint Germain token is available.

The token has a high year inflation rate but relies on the fan interest to counteract that. On the other hand, CHZ is available as an Ethereum ERC-20 and a Binance Smart Chain BEP-2.

A recently announced partnership with Chainlink allows the platform to mint Non-Fungible Tokens (NFT) for limited edition sporting events. These NFTs can also be used to gain access to exclusive events. A partnership with Binance has allowed all platform tokens to be listed on the exchange. With this, Binance also offers more trading pairs for the tokens.

Der Beitrag Chiliz up 880% in one month – Is it the ultimate combo of NFTs and sports? erschien zuerst auf Crypto News Flash.

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