Chiliz CHZ/USD attempts to be the ultimate digital currency and platform when it comes to sports and entertainment. The idea is that you can purchase as well as trade branded fan tokens and have the ability to participate, influence, and vote in surveys and polls. It was founded in 2018 with a vision to bridge the gap between the active as well as passive fans out there.
Fans will essentially use the CHZ coins to purchase branded fan tokens, and this gives them influential power to make decisions by allowing them to vote on polls. All of this is done through the Socios app.
Are you looking for fast-news, hot-tips and market analysis?
Sign-up for the Invezz newsletter, today.
In fact, the CHZ token exclusively powers the Socios app, which is the consumer-facing platform where fans can utilize fan tokens. They are a requirement if you want to participate in Fan Token Offerings (FTO), the initial sale of fan tokens, and Socios Locker Room, where popular demand can show potential partner clubs or sports.
Furthermore, these fan tokens can be traded in the Chiliz in-house exchange against the Chiliz Token (CHZ).
Moving up the ladder
On May 14, Roush Fenway Racing announced that they were the first to offer crypto fan tokens in NASCAR. The ROUSH Fan Token is intended to be minted on the Chiliz blockchain which provides owners with access to voting rights in polls, VIP rewards, exclusive promotions, AR-enabled features, forums, games, and much more on the Socios app.
Then on May 22, Chiliz took to the track with Formula 1 fan tokens, where Aston Martin Cognizant and Alfa Romeo Racing were the latest to launch their tokens on the platform. These fan’s tokens were issued to distribute merchandise, create AR marketing campaigns, and allow fans to vote on things such as team uniforms.
This gives fans the control to tailor their future experiences with a specific team, where instead of just vouching for them, they can impact the team’s overall outlook. This will lead to an increased desire for CHZ tokens, as they are required for this change to occur.
Should you buy Chiliz now?
CHZ saw its high point on April 16 where it was valued at $0.773. On May 14, when CHZ was announced to be a part of NASCAR, the value was at $0.436.
Then on May 16, Chiliz announced their strategic partnership with the Binance Chain in order to bring global brands and household names within the cryptocurrency space. This led to the price maintaining a stable $0.437.
Socios boasts over 500,000 downloads on Android and is also available on iOS. The large number of users showcases just how much interest people have in this concept of having fan tokens. As such, CHZ might be a good buy at current levels of around $0.237 as we have seen it trade recently above the $0.75 level.
As sports events continue to return back to normal (i.e fans who attended the NASCAR race in Sonoma Raceway in early June) fans are likely to have pent-up demand for new and exciting ways to be a part of their communities.
However, if it falls below $0.200 then it might be a sign that bulls have given up hope and sellers are in control of the market. At this point, the downside momentum could accelerate.
67% of retail CFD accounts lose money