Team sports, including football (soccer) and basketball are a major part of the multibillion sports industry. There are 11 (!) football teams worth more than 1 billion USD each. Each of the team is not just a group of talented players; it is a business bringing hundreds of millions USD revenue per year.
What’s more, sports teams have some of the most loyal fans around. These are people who are ready to travel thousands of kilometres just to support their favorite players. They pay hundreds USD for tickets and merchandise.
However, the fans have no way to directly influence the team. Yes, they can buy merch to support it, but when it comes to making decisions, they can only wait and hope. But could this problem be solved?
The idea behind Chiliz
If the teams are always looking for new income sources and fans are willing to take part in team management, why not give both sides what they want? Fans could pay teams to buy the ability to impact team-wide or even league-wide decisions. But what is the right tool to keep track of just how big the impact of each fan on the decisions should be according to their investitions?
That’s right, crypto.
This is exactly what Chiliz tries to do.
How Chiliz works
Chiliz (CHZ) is an Ethereum ERC-20 based token that uses Proof-of-Authority consensus algorithm. It is integrated in the Socios app. The main reasons why Chiliz chose Ethereum are that it is future-proof (with Proof-of-Stake coming in 2020), well-designed and has a large developer support.
However, the economics of CHZ matter more than technical aspects.
How Chiliz makes money
Chiliz has a strong economical model deeply tied into one of the largest industries in the world.
The main source of revenue for the project are Fan Token Offerings (FTOs) that get carried out by the sports teams on Socios platform. With every FTO potentially able to make millions, and Chiliz profiting on each of them, CHZ has tons of money-generating potential.
At the time of writing, the first-ever FTO was already launched by Juventus. This team alone has a fanbase of over 150 million; at least 5 others will join during the next half-a-year.
The holders of Juventus Fan Tokens will be able to decide which song to play as a celebration of the first goal Juventus will score in 2020. Of course, this is just an example of what decisions fans will be able to make using Socios; more polls will be available in the future.
Contrary to many other cryptocurrency projects, Chiliz did not hold a public ICO. Because the hard cap was reached during the first phase – the private sale – there was no need to sell more tokens to the public.
Instead, the team will focus on how to spend 66 million USD raised wisely, paying attention to marketing and development.
A strong team
Chiliz is managed by industry professionals with more than 10 years of experience in the relevant field – something that can not be said about many cryptocurrency projects.
The CEO of the company is Andre Dreifus. He has worked more than 22 years in the tech sector, making and improving tech startups. His notable creations include Webcity, an interactive tourism guide created in the 90s (!), which was later sold to Carrefour, as well as Winamax – the largest French online poker room.
Always keen to explore new opportunities, Dreifus also was the one to think of Chiliz concept.
The Chief Technology Officer at Chilliz is Thibaut Pelletier. He has 13 years of experience in software development, including online gaming platforms. He was also a CTO at Chiligaming – a platform with more than 200 000 global users.
The project also has an advisory board, which includes Google’s and Facebook’s employees, as well as heads of several companies, including Ve Global’s CEO.
Chiliz is developed in Malta. The country is known as the “blockchain island” for the great conditions it provides to cryptocurrency-related projects.
As for the time of writing, the project is in the process of being registered in Malta Financial Services Authority (MFSA).
Socios app ecosystem
Socios is the central part of Chiliz ecosystem. Sports fans can use this platform for:
- Purchasing Fan Tokens of their team of choice
- Influencing team and league-wide decisions through polls. The more Fan Tokens of a certain team/person user has, the more influential his vote is.
- Trading Fan Tokens for CHZ tokens. The price is determined by the market.
At the time of writing, Socios is only available on Android. iOS version should be coming soon. Android version can be downloaded here.
On the verge of adoption?
Because the business model of Chiliz has the potential to bring millions to sports teams, the latter ones are interested in promoting the crypto project.
In fact, they already advertise Chiliz to their audiences. Here’s a promotional Chiliz video Juventus posted on their Facebook page:
Football clubs like Juventus are promoting Socios.com via content on their social channels, generating hundreds of thousands of views. As Chiliz gains traction, more teams will advertise it, bringing new users.
But what exactly do the teams gain from Chiliz?
A lot, actually:
- More engagement with the fans, which should result in even more loyal fan base
- A consequence of the more loyal fan base: more ticket and merchandise sales
- A possibility to show themselves as the innovators
Not only sports teams; future outlook
In the future, Chiliz aims to explore new areas, such as baseball, F1 and cricket. In particular, the project could extend to eSports and Twitch.
According to Chiliz, eSports market could experience over 30% yearly growth in the next few years. Twitch, on the other hand, already gains several hundred thousand new viewers per year. What’s more, both of them have teams and persons with massive following.
When Ninja, who is one of the most recognized streamers, left Twitch for Microsoft’s Mixer platform, he brought along more than a million followers. Mixer gained several hundreds of thousands of viewers within a few days after Ninja left Twitch, which is almost the size of the entire Mixer’s audience prior to Ninja’s debut.
It isn’t hard to imagine that a few streamers of Ninja’s scale could do the same to CHZ. If only Chiliz partnered with them…
Wait, Chiliz actually did that already.
The project already boasts partnerships with media personalities, streamers included. Here are some of them:
- Dr. DisRespect – one of the most renown streamers worldwide. He currently is in the list of Twitch top-10 streamers by follower count.
- Anomaly – a streamer with almost one million followers on Twitch and more than 2 million YouTube subscribers. He is also interested in cryptocurrencies, having launched his own cryptocurrency-dedicated YouTube channel, Benim. However, the channel seems to be abandoned at the time of writing.
- ElkY, Kook “The boY” Kibong, Hong “Yell0w” Jin-Ho – professionals widely recognized within StarCraft community
Considering that not only large football clubs, but also these Internet celebrities back CHZ, it becomes easy to see just how ambitious the project is.
What’s more, nothing stops Chiliz from entering new markets with a demand for voting mechanism it provides. Just because it is a sports-focused project now doesn’t mean it cannot expand to other areas in the future.
Chiliz (CHZ) token
CHZ is a central part of Chiliz and Socios ecosystem. There will be only 8 888 888 888 tokens in existence. Here is how they are allocated:
CHZ price history
When CHZ first became available to trade back in July 2019, the price of a single token was a little over 1.5 US cents. However, a sharp downfall to 0.6 cents followed, continuing up until September 2019.
In the autumn, CHZ experienced 2 mini-rallies that took it 1.1 cent and 1.7 cents respectively.
At the time of writing, the price of a single CHZ token is equal to 1 cent.
Ready to take off?
Chiliz has it all: strong economic model, excellent technology and one of the largest markets in the world it aims to monetize. Due to all these factors, it might be the next altcoin to skyrocket in value.
Of course, there are risks, as with any new crypto project. However, the trustworthy team, extensive documentation and major partnerships show that Chiliz is certainly not a vaporwave. It even has a working product – the Socios app.
What’s more, 2020 is going to be a truly exciting year for the project, with all the launches of FTO’s planned.
Is CHZ worth investing into? You decide. Is it worth researching? Definitely.
Frequently asked questions
Where to buy CHZ?
Where can I find Chiliz whitepaper?
The up-to-date whitepaper can be found here.
How can I contact Chiliz?
Those who might have ideas on how to improve Chiliz or just want to clarify certain aspects can write an email to Chiliz. Use this address: contact@Chiliz.com.
We hope you enjoyed the article. If you found it helpful, feel free to share it and join our community and digest!