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Forewarning - I am not a financial adviser nor should you take financial advise from me. This post is only meant for educational purposes only. I will not be responsible for your profits or losses. So before putting your hard earned money into any blockchain or crypto projects, make sure to do the due diligence. Also the links used have referrals enabled.
What is Chiliz?
Chiliz ($CHZ) is a digital cryptocurrency that is designed to purchase Fan Tokens on their associated website called Socios.com (we will talk about this later). Its only purpose is to engage professional sports teams and leagues to bring them into a digital environment where they can interact with their fans and offer them different exclusives and rewards. In some cases, these teams and leagues offer voting rights to Fan Token holders on certain decisions (like say the color of the jersey), and having more Fan Tokens of a particular team will get you more votes in the decision. Alexandre Dreyfus is Chiliz's CEO and Thibaut Pelletier is their CTO; both of them has got some solid experience in the regulated French online poker industry.
Courtesy - Chiliz Whitepaper
Chiliz Ecosystem
There are three components that make up the Chiliz ecosystem:
- Socios.com: The main platform where the Fan Tokens (which are basically ERC20 and BEP20 tokens issued on behalf of each team) are created and sold in exchange for $CHZ. This is the same place where fans can vote & influenze the governance decisions, earn rewards and/or purchase more $CHZ.
- Chiliz.net: The cryptocurrency exchange for buy or swap $CHZ, allowing crypto-enthusiasts or traders to speculate and trade existing Fan Tokens.
- $CHZ token: The digital currency that powers the entire Chiliz ecosystem.
Courtesy - Chiliz.com
What can we do with the Fan Tokens?
There are several things to do with the Fan Tokens -
- Fiat Exchange: One can exchange fan tokens for $CHZ which then can be exchanged for fiat currencies
- Trading: Fan Tokens can be traded on the Chiliz exchange just like a cryptocurrency or a stock
- Voting: The more fan tokens one has, the more voting rights that user has
- Merch deals: Exclusive deals can be offered to users who hold fan tokens
- Locker Room: This is like the pre-launched tokens which is essentially put in place to showcase the 'not-yet-onboarded' teams to entice them with details showing what would their fan tokens look like and how much 'dough' they can bring in. (basically 'coming soon' fan tokens)
Chiliz Exchange & It's Tokens
Chiliz exchange is a centralize exchange which offers trading on $CHZ pairs, like $CHZ-$USDT. Users can liquidate their fan tokens on the Chiliz exchange for other cryptocurrencies or fiat. Ever since their partnership with Binance, BINANCE also allows trading of Fan Tokens isued on the Chiliz platform on their exchange as well but Chiliz.net is the cheapest among them all. There are mainly four types of tokens that can be found on the Chiliz exchange -
- Fan Tokens : Finite number of tokens issued on behalf of a team which will give it's fans voting rights to certain decisions like jersey color or team lineup. It might also offer some perks like exclusive merchs or discounts on products. There is also a way to burn some of these tokens based on demand.
- $CHZ token : These are ERC20 (deployed on Ethereum) or BEP20 (deployed on Binance Smart Chain) tokens which serves as the currency for the Chiliz platform. People can buy $CHZ to swap it for various products on the platform like the fan tokens which are bought using this token.
- Locker token : "Coming soon" fan tokens. Think of them like the IPOs or ICOs. Users can lock their $CHZ in order to stand in for a chance to win the respective fan tokens where if the tokens become live, they will get a 1:1 tokens for their $CHZ and if it doesn't, they will get back their original share of $CHZ tokens.
- ERC1155 NFTs : Teams can issue limited edition NFTs for various game moments and sell them to the users.
If you are planning to buy or trade crypto, I recommend giving the KuCoin exchange a try. They got some great offers for various coins in terms of lending and staking. Celsius is a good option if you want to safely earn returns on your crypto assets. Do check these out if you haven't already.
Couple of other articles which you might be interested in:
- 3 Hot Cryptocurrencies to look out for
- Is Solana (SOL) the real 'Ethereum Killer'?
- All you need to know about Security Token Offering (STO)
- All you need to know about Liquidity Pools
- All you need to know about Hyperledger
- All you need to know about Aave
- All you need to know about Hardware Wallets
- All you need to know about NFTs
- All you need to know about Algorand
- All you need to know about Blockchain speed
- All you need to know about Transaction Signature
