CHZ Coin - What to Know About the Fan Engagement Platform
 
 
 
 
 
 

CHZ coin – what to know about the fan engagement platform

/ 11:01 AM December 07, 2021

Sports and cryptocurrency somehow blend well in the form of Chiliz (CHZ) coins. Now, you can show your support by purchasing blockchain-based products from your favorite teams. In return, you get to vote on major team polls and receive various rewards. If you thought you couldn’t have fun with cryptos, Chiliz might just change your mind!

If you’re not interested in sports swag, you might want to check it out as an investment. NFTs are becoming more popular, making a lot of money. You heard Chiliz might be a good choice. This guide is here for both sports fans and investors!

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We will have to provide more details about Chiliz, such as its origins and use-cases. Also, we’ll go deeper into what CHZ coins are and what they do. Then, I’ll break down the good and not-so-good of the Chiliz platform. We’ll see if this is a good investment.

What is Chiliz?

This is the CHZ coin logo.

Chiliz started in 2018 as a way to benefit sports fans and teams. It wanted to give fans a new way of connecting with their favorite teams while enabling those groups to make money too.

A crypto network or blockchain allows fans to purchase branded fan tokens. These fan tokens are minted using the Chiliz platform.

People can buy them on the Chiliz platform using its native cryptocurrency called the CHZ token. You might wonder why I keep referring to CHZ as a coin and a token!

Which one is it? CHZ is a token because it’s built on the Ethereum (ETH) blockchain. Specifically, it serves as a governance token and a utility token.

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It works as a governance token because it lets people vote on fan-led decisions and join fellow CHZ holders. Your vote has more weight if you hold more CHZ tokens.

Voting is executed with the help of smart contracts. You only need one Chiliz token to start, but you might want more. After all, more CHZ tokens allow you to purchase more fan tokens.

This is the reason why CHZ tokens are utility tokens too. Aside from allowing holders to vote, they may also spend it on blockchain-backed products.

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These agreements execute by themselves as long as certain conditions are met. This makes polling more convenient and secure.

Chiliz is behind the biggest non-exchange blockchain-powered app, Socios.com, in 2019. Its first fan token was for the Italian soccer team Juventus.

It offers more options from other teams and clubs such as Manchester City. Alexandre Dreyfus is Chiliz’s CEO, and its headquarters is in Malta.

How does Chiliz work?

If you’re a sports fan, the previous section was probably all you needed to start using Chiliz. On the other hand, investors may like this segment more.

We’ll now cover how the Chiliz network functions, which will be more complicated. Yet, investors will need this section to figure out if they should buy CHZ coins or not.

After all, you would want to know how your asset works to make the right investment decision. Let’s start with the type of crypto network that Chiliz uses.

Chiliz is a proof-of-authority (POA) blockchain, meaning it only has a few select nodes instead of letting everyone pitch in the network.

On the other hand, most cryptos use either the proof-of-work or the proof-of-stake model. They let people use their computers to help operate the network and earn more cryptos.

An article from Chiliz says it chose POA because it has a lot of advantages that suit its needs. The following are the reasons it specified:

  • It is more secure because POA doesn’t let everyone join the network. As a result, it reduces the chances of a hacker messing with the transactions.
  • Chiliz uses POA because it uses less computing power.
  • Also, it reduces the time for transactions to take effect.

The fan tokens are NFTs or non-fungible tokens. If you own one, a blockchain records your ownership. As a result, your fan tokens become unique among the others.

Chiliz also works with another blockchain called Chainlink (LINK). It provides the real-world data that the smart contracts need to make the Chiliz fan tokens.

Read More: How Does Chainlink (LINK) Work?

The upsides of Chiliz

If you’re a sports fan, the Chiliz platform may seem like a nifty service. It lets you purchase stuff from your favorite teams while joining similar folks online.

Chiliz can give you a new way to support your favorite team by voting on their polls. The fan tokens have a limited supply, so yours becomes valuable as more people buy.

The proof-of-authority model of the Chiliz makes sure you get convenience when using the platform. What’s more, this will allow you to ride the ongoing NFT craze.

People are earning millions of dollars from NFTs nowadays. Since there’s a limited fan token supply, yours will likely grow in value. Eventually, you might want to sell some for profit.

The downsides of Chiliz

People, including you and me, are tired of COVID by now, but it was still here at writing. Unfortunately, the Omicron variant is a new threat, specifically for sporting events.

On November 29, 2021, Portugal found 13 cases of Omicron in members of soccer club Belenenses SAD. We may see more cases in other countries soon.

In turn, we may see more sporting events canceled worldwide, including the ones with Chiliz fan tokens. Platforms like it thrive on live matches so that Chiliz may struggle without them.

If you’re a true fan, you’re probably not affected. You’ll be buying tokens out of support for your team. This is bad news for investors because it puts the value of CHZ tokens into question.

At the time of writing, Ethereum and most cryptos are dropping in value. This could be a great time to buy CHZ tokens. However, if the trend continues, it might be better to wait first.

Is CHZ coin a good investment?

This is the Chiliz website.

The Chiliz price was $0.304 at the time I wrote this article. The circulating supply was 5,952,921,248 CHZ, and its value reached an all-time high of $0.8915 on March 13, 2021.

You can buy CHZ tokens at these cryptocurrency exchanges: Crypto.com, Binance, Coinbase. Note that the CHZ price may vary within the next 24 hours.

The big question now is, “Should I invest in Chilz?” Well, that’s for you to decide. Investors must have a plan before buying assets, so they study them deeply.

My article can help you start, but you should look at more resources. See all the available options and decide if Chiliz is right for your portfolio.

Final thoughts

This article is not meant to provide investment advice. Whether Chiliz is a keeper is up to you. Again, have a plan and study the available assets to decide for yourself.

Everyone has a game plan until the whistle blows, then you will have to make do with the changing conditions. Similarly, expect crypto market prices to move unpredictably.

Fortunately, Inquirer USA has more of the resources you need to start investing. Those will introduce you to more cryptocurrencies and other assets like stocks.

Disclaimer: This article is the author’s personal opinion, which may differ from the “official” statements or facts. All writers’ opinions are their own and do not constitute financial advice in any way whatsoever. Nothing published by Inquirer.net constitutes an investment recommendation, nor should any data or content published by Inquirer.net be relied upon for any investment activities.
Usa.inquirer.net strongly recommends that you perform your own independent research and/or speak
with a qualified investment professional before making any financial decisions.

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