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Review Of The New Cryptocurrency Chiliz (CHZ)

The blockchain industry keeps flourishing at rapid pace. The distributed ledger has affected multiple areas not only in business, but also in the entertainment industry. Hundreds of projects compete for user attention, as well as with one another in terms of uniqueness. They offer innovative solutions and novel ideas for their application to the cryptocurrency community. That said, Chiliz is definitely one of the most interesting projects in this area. Let’s see how it stands out from the rest of the cryptocurrencies. 

What is Chiliz (CHZ)?

Chiliz is a digital currency for sports and entertainment venues. In addition, it is a unique voting coin on the fan site Socios.com. This platform allows fans of traditional sports and e-sports to manage their favorite clubs, competitions or individual events. 

In addition, Chiliz is suitable for tokenizing any sports and entertainment events. This is a distributed ledger technology that offers solutions for the average user. For this reason, the Socios.com platform was created for active interaction of fans with their favorite players and teams. The asset’s main benefit is that fans can vote and help make decisions for those companies that are represented on Socios.com. 

Therefore, the CHZ currency serves as a kind of “fuel” for the functioning of the platform. The Chilliz platform currently cooperates with dozens of clubs, among which the most famous are Juventus and Paris Saint-Germain. 

CHZ Features

Chilliz solves an important problem of modern traditional sports and e-sports industry – the fans’ inability to influence the life of a team or club. In fact, people just watch matches and follow the organization’s activities. The most that they can do is to support the organization financially (through purchasing tickets, season tickets, merchandise, etc.) or in any other way. Changes to the organization’s vector of development from the fan base are out of the question.

Socios tokenizes the voting right for each of the sports enthusiasts. It enables the fan base of a club (for example, PSG or the same Juventus) to vote for important decisions. The blockchain provides absolutely fair results. The same is true for e-sports disciplines. 

The idea implemented by Chiliz is by far not new. Some football clubs give fans the opportunity to influence their development. Among the less famous teams, however, there are often examples where the team is practically in the hands of fans. 

When it comes to developers, the company belongs to the Maltese Mediarex Group, which has been operating in the global market for over 15 years. 

For almost 2 years of its existence, Chiliz has managed to enter into partnerships with many clubs from the top European leagues. Moreover, one of the world’s largest cryptocurrency exchanges directly invested in the project. This is already a quite decent argument in its favor.

How Socios.com Works

Now let’s talk about the interaction between sports teams and fans. It looks something like this:

  • The club predetermines a list of areas in which fans will make critical decisions. In other words, part of the authority is transferred to ordinary people;
  • Socios.com platform creates a number of fan tokens
  • Fans buy these assets and vote on Socios. The more fan tokens one person holds, the more weight their opinion has.

Each platform participant starts with a predetermined number of fan tokens. Participants are also invited to exchange CHZ cryptocurrency for fan tokens at a certain rate and participate in voting. Smart contracts are used to record votes, with the results recorded in an auxiliary blockchain (sidechain). However, internal tokens are sold at a constant price and in turn. This ensures fair and transparent distribution of assets and voting rights. 

There is also an internal protection against monopolization. The user cannot buy fan tokens uncontrollably. Therefore, neither people nor organizations can gain full control over the team through Socios.com.

Even one fan token gives access to the marketplace on this platform. Simply put, a fan token holder can profit from voting rights by offering assets for free sale at their own price. 

But here the developers resorted to the principle of traditional financial markets. Potential buyers see only fan tokens with a minimum value. The next highest bid will only be available if all assets at that level are bought out. 

Here is a simple example: Let’s say there are 100 fan tokens on free sale at 60 CHZ, 30 CHZ, and 10 CHZ. Participants will first see a 10 CHZ offer. As soon as its liquidity is exhausted, a 30 CHZ offer will be displayed, etc.  

The project uses 2 types of distributed ledgers:

  • Ethereum network. It is used to store data on CHZ currency related transactions.
  • Auxiliary blockchain for Socios.com. It includes records of voting results and transactions related to fan tokens. 

Socios.com charges a small fee for buying or selling fan tokens on the marketplace. However, voting on specific issues is free of charge. 

Advantages

Now let’s talk about the advantages of the Chiliz platform:

  1. Absolutely reliable information and transparent transactions. The project is supported by a reputable company registered in the EU and cooperates with European banks. Furthermore, its activities are fully supervised by regulators. Therefore, the information on the accounts is fully verified and publicly available. It is the operational transparency and trust of the community that matter in the ICO market. 
  2. Market penetration. Chiliz’s cooperation with many organizations has served Chiliz the good turn. Thus, the company has established several strategic partnerships both in traditional sports and e-sports, as well as in many regions. The project is supported by the Maltese government, Playtech (a large global provider of online gaming services), celebrated personalities in the e-sports industry and the largest digital marketing representatives in Southeast Asia. Such cooperation facilitates the project in terms of penetrating the global e-sports market.
  3. Energy efficiency. As the private cryptocurrency network, Chiliz operates under the Proof-of-Authority consensus algorithm. It differs from the generally accepted Proof-of-Work in less computational intensity and low energy costs. Also, the PoA mechanism guarantees fewer transaction confirmation delays. This, in turn, ensures faster operation of the entire system. 

Project Roadmap

As for the roadmap, technically, the service is almost complete. That said, Socios.com launched the first seasons of football, e-sports and mixed martial arts, and the user base is gradually growing.  

The developers’ plans call for rolling out a lot of interesting stuff. Thus, they plan to increase the number of platform users. Socios is joined not only by renowned teams, but also strong middlings, for example, Trabzonspor, Legia or Young Boys. 

In addition, CHZ cryptocurrency can become an exchange medium. Therefore, active work is underway to integrate the currency with third-party services. 

But the first serious steps have already been taken. Collaborations with Manchester City, Atletico Madrid, Juventus and PSG reinforce the community’s hopes for all the developers’ plans to come true. As you can see, they have never lacked enthusiasm.  

Chiliz Team

Chilliz is developed by people with many years of experience. Let’s get to know the key figures in the team:

  • Alexandre Dreyfus is Chief Executive Officer at Chiliz and Socios.com. Previously, this person had worked on such major projects as Mediartis and Webcity.
  • Thibaut Pelletier, Chief Technical Officer at Chiliz. Previously, he had worked as an engineer in research companies and the Big Data industry. He also served as Chief Technology Officer at Chilipoker and Spread Research. He was also a Team Lead at Bally Technologies and Scientific Games. He joined the Chiliz team in 2018.
  • Max Rabinovitch is Chief Strategy Officer at Chiliz. During his career, he also worked as Creative Director at ComboApp and Marketing Lead at Freelance.
  • Emma Diskin is the Chiliz’s PR & Communications Director. Previously, she had worked for ITV (British TV channel), managed public relations at MTV, worked on social issues at Camelot Group (operator of the UK National Lottery), advised freelancers on PR issues, and also was in charge of the iGaming company Betsson Group (Sweden).
  • Magnus Linder is Head of Partnerships & Business Development at Chiliz. He has over 15 years of experience in marketing, and has been holding management positions since 2007. He was also the marketing manager for the ice hockey club AIK ISHockey AB and the Association of Professional Football Clubs in Sweden. 
  • Fiobian Manicolo is Chief Financial Officer at Chiliz. Previously, he had worked as an auditor at KPMG International and Chief Financial Officer at Chilipoker. He joined Chiliz in 2012. 
  • Jade Cruickshank is Chief People Officer at Chiliz. She was also responsible for recruiting staff for Pentasia and Betting Connections, and was the head of sales at Yellow Brick Investments (investment company).

Overall, the team is quite venerable and devoid of frank newcomers. 

Chiliz (CHZ) Quotes on Exchanges

The Chiliz (CHZ) digital coin is now worth about $0.48. The daily trading volume has exceeded $1 billion. Market cap is approaching the $2.7 billion mark. According to Coinmarketcap, the token is top 40.

Project’s Prospects

The project developers claim they afford an opportunity for all sports clubs to create a new monetized economy and at the same time improve relations with fans. And one cannot but agree with these facts. In addition, instead of the usual ICO, the company held the so-called Fan Token Offer. This is quite an original move that made the project stand out from its rivals. It should also be noted that some clubs have fan bases exceeding the population of some European countries, and international communities cover all continents. Therefore, fan bases can be an ideal place to create new means of measuring value and exchanging assets. 

Reaching out to a sports fan can also increase sales. Such agreements can be beneficial to absolutely all parties. Thus, for the CHZ coin, sports clubs offer a fan base with millions of potential customers who could not have been attracted in any other way. And if we also take into account the general support of the project by the industry’s giants, we can confidently talk about the Chiliz’s bright future.

Conclusion

Now let’s summarize. Although the Chiliz project is not unique, it definitely deserves the community’s attention. The developers chose a simple and urgent problem, and also came up with a really working solution. Therefore, this is their big plus.

In addition, both the cryptocurrency and the Socios platform benefit from the already mentioned collaborations with top clubs such as Manchester City, Juventus and PSG. In addition, the company resorted solely to the private offer of tokens and raised the required amount of money to create a full-fledged cryptocurrency project.

But there are risks as well. There is a possibility that some celebrated teams will not want to be represented on Socios. Furthermore, it is not yet known how else fans will be able to draw income from their participation, other than speculating with tokens. 

But given the stable interest in football, as well as the growing interest in e-sports and digital currencies, we can confidently talk about notable prospects for Chiliz. After all, the quintessence of all these factors can bring the project to the mainstream along with the cryptocurrency market giants. 

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