HomeOPINIONWhat is Chiliz coin and how does it work?

What is Chiliz coin and how does it work?


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Over time, the crypto space has thrown itself into the limelight, thereby becoming one of the leading industries across the globe. Despite its inherent volatility, hundreds of thousands of people across the world still trade in cryptocurrencies daily. In most cases, these people harness the assets to trade, make payments, instill investments and store value. This thus authenticates the popular notion that cryptocurrencies are utility-driven. However, despite the fact that digital assets have numerous functions, their most notable function is serving as a medium of payment and investment. Worth noting that cryptocurrencies usually derive most of its value by serving as native tokens of their protocols, thus becoming a means through which users of those platforms pay transaction fees. Remarkably, chiliz coin is one of such crypto.

As usual, it is imperative to note that every reader of this content should embrace and comprehend this article without misrepresenting its motive. Indeed, emphatically, this piece is not for the purpose of promoting the crypto, but only to appraise its background, potential and peculiarity for investors to make informed decisions. Therefore, any consequential decision lies solely on the investor and not the responsibility of the author.

Chiliz coin: General Overview

Remarkably, Chiliz coin is the official native token of its platform, identified as socios.com, an engagement platform for football lovers. Notably, it runs as an ERC20 token on Ethereum. It also runs as a BEP2 token on the Binance Smart Chain. As of press time, the token can be purchased in notable crypto exchanges, including its exchange, Chiliz.net. Worthy of note that Chiliz coin serves as an instrument through which sport fans teams buy their voting power in their favorite team. Once a fan possesses this coin, such fan will then use it to purchase the fan token of their favorite football team on Socios.com.

Beyond voting right, the fan token allows holders to also enjoy memorabilia, promotions, rewards, exclusive meet and greet and others. As of today, scores of sporting clubs, including Barcelona have fan tokens for their committed supporters. However, the level of prospects enjoyed by holders of fan tokens depends on the club they support. This thus illustrates the significance of fan tokens aided by socios.com through its chiliz coin

Aside serving as a medium through which sport supporters buy their fan tokens, Chiliz coin also helps power, fuel and safeguard its native protocol. Just like other cryptocurrencies, the supply of the coin seems limited. Notably, it has a total maximum supply of 8,888,888,888 CHZ coins. Notably, Chiliz coin, just like others can be staked on socios.com. This thus allows its holders to get a ten percent $CHZ bonus as well as new fan tokens.

Native platform of Chiliz coin

Notably, socios.com as a native platform of chiliz coin runs as world’s first fan influence and rewards platform. It usually explore the prospects enveloped in blockchain technology to ease interactions between sporting teams and fans. According to its whitepaper, socios.com came into h to give fans a sense of participation in their teams. The Chiliz coin native protocol noted that prior to its emergence, fans only participate passively by just watching games or purchasing merchandise. However, the coming of the platform announced the presence of these fans in decision making processes of their teams.

Through the chiliz coin, socios.com enables sport lovers to participate in the governance of their favorite sports teams. These fans usually influence numerous decisions within the teams, including new uniform designs, celebration songs, stadium names and, many more.

Remarkably, every fan token is developed on the socios.com platform. Occasioned by this development, every voting on proposals by sporting teams usually manifest on the platform. To achieve this, socios.com usually relies on its using series of smart contracts. Meanwhile, the values of fan tokens is usually dependent on market situations.

Tracing the history of Chiliz project

Tracing the history of Chiliz coin, and its native platform leads me to Alexandre Dreyfus. Worth noting, Dreyfus founded chiliz which created socios.com. Before founding this project, he has already established web-based firms. Some of those firms include Webcity, Winamax, and Chilipoker. Till date, the founder is the CEO of Chiliz. Remarkably, Chiliz coin and its platform aims at inspiring millions of sporty fans across the globe. According to Dreyfus, fan tokens remains the ultimate fan interaction tool. It also helps to foster revenue generation for the sports industry. Over time, the protocol has partnered with various big sporting institutions across the world.

Features of Chiliz Ecosystem

It’s worth establishing that the Chiliz ecosystem has been integral towards to bonding of cryptocurrency and the world of football. To some extent, the project has facilitated the onboarding of sports lovers into the digital asset sphere. In that regard, exposing them to the entirety of the industry. Among the numerous applaudable features of Chiliz is its limited supply to fans of every sporting organization using the innovation.

Fan tokens of each club or sporting organization are offered at the initial Fan Token Offering (FTO). Notably, the tokens are released on a first-serve system with Chiliz revealing the opening price.

Through the native token of the platform CHZ commonly referred to as Chiliz Coin, fans can purchase the token of their club. Further, fans can exchange Chiliz crypto for their dan token on the platform’s native exchange or the Socios.com application.

Additionally, a notable feature of the project is the popularization of blockchain initiatives among sports lovers. Currently, the platform is orientating sports lovers through the Chiliz Blockchain Campus about the usefulness and opportunities in the industry. The project is an incubator that is aimed at fast tracking the mainstream adoption of blockchain. Majorly, the program is targeted at top markets like Asia and Europe.

While the project has pushed blockchain innovations into the limelight in the sporting world, it has given fans a say in the decision making process of their preferred club.

Notable development on the Ecosystem

At the long run, Chiliz has offered fans the privilege to become critical stakeholders in the decision-making process of their club. Though their influence remains limited, yet, the project has been able to change the status quo. The world must regard the innovative approach of the project and the result it has commanded as a landmark achievement.

Through the project, numerous landslide development has taken place that has exposed fans of top footballing clubs to virtual assets. Another notable development the project has birthed is the globalization of support and acceptance of sport brands. Now, supporters can vote on issues about their preferred club irrespective of their location or region. To some extent, it’ll be fair to establish that Chiliz Coin has actively contributed to the global acceptance of sporting organizations.

With the addition of Portuguese club side SI Benfica in June, Socios alongside Chiliz has boarded over 150 of the biggest sporting organisations in the world. The sporting organizations includes Paris Saint-Germain, FC Barcelona, Valencia, Atlético de Madrid, Manchester City, Arsenal, S.C Corinthians, Flamengo, São Paulo FC, CR Vasco da Gama, FPF and UEFA. Over 50 major US sports franchises from the NBA, NHL and NFL, MMA outfit UFC, several Formula One teams and leading lights from the world of esports are currently all on board.

Major Shortcomings

Chiliz hopes to offer supporters a vocal voice in making decision about their preferred sporting organization, yet, the aim hasn’t materialised fully. Fans are limited to contributing to less sensitive issues about the clubs such as stadium music, the menu on match day, and design on team tour buses among others. More so, the project has only elevated supporters to influencers.

Yet, supporters cannot vote or participate in crucial decision-making processes like the recruitment of staff, coaching crew and players. Also, they can’t throw their weight on who a manager ought to play in a game, set piece taker, and formation. Above all, supporters don’t have a major say in issues that concern them the most.

Therefore, critics have faulted the Genuity of the project. They labelled the Chiliz coin as a tool for monetizing support from fans. Likewise, they criticize how the project has failed to give more power to supporters. Critics faulted the volatility of the Chiliz coin. They cited how it is liable to drop value rapidly due to micro issues.

Future of Chiliz Coin

Around March 2021, Chiliz Coin attained its all-time high of $0.8915, while it has an impressive 601.07% Return On Investment. However, since its creation, the token has never hit a $1 price height. The value of Chiliz Coin has fallen drastically owing to the general price downturn in the cryptocurrency market.

Likewise, the project alongside its native coin has grown in acceptance owing to its adoption by top sporting brands. The increasing adoption should facilitate a good market rally once normalcy returns to the cryptocurrency space. Investors can retain faith in the token but they should commit a responsible part of their funds to the project. Chiliz Coin isn’t immune to the volatility of cryptocurrency, thus, investors must follow market trends to draw their hodling strategy.

The project will enjoy a prosperous future due to the ever-expanding nature of the world of sports. With time, Chiliz will enhance supporters’ influence on crucial issues, which will aid the project to grow in popularity.

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Olaleye Komolafe
Olaleye Komolafe
Olaleye is a professional reporter with vast experience in web3, cryptocurrencies, and NFT journalism. He enjoys writing about the evolving metaverse sphere and the prevalence in the crypto sphere. Notably, some of his contents have been published in numerous international publications. Away from the crypto world, Olaleye is a political scientist and a lover of football

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