Chiliz: When sport meets blockchain

Blockchain technology is best known for its use in the banking sector. In fact, blockchain was first introduced in response to the desire to stop relying on banks to manage one's money. This desire led to the creation of the very first cryptocurrency in history: Bitcoin.

But today, the use of blockchain is no longer limited to cryptocurrencies. Many business sectors are already using blockchain, or plan to do so in the coming years. These include music streaming, insurance, hotels, real estate, video games and sports.

A sector worth billions

According to the OECD, the sports sector accounts for around 2% of global GDP. That's almost 1,200 billion euros. In France, according to the study "La filière sport prend ses marques", published by Groupe BPCE, the economic weight of sport is estimated at 91 billion euros.

And that's not counting investment by local authorities, sponsors and TV rights. Over the years, the sports market has never ceased to grow, and it intends to enter the crypto world in one way or another. And this is precisely what the Chiliz project will enable.

Introducing Chiliz

With over 200 employees to its credit, chz (chiliz) is a multinational created in 2018, which is behind an innovation aimed at boosting the sports industry. This is thanks to a system that facilitates interaction between athletes and their fans. How does this ease of interaction, made possible by blockchain, benefit both parties?

On the fans' side, it gives them a new way of getting involved with their favorite teams and gaining privileges in recognition. On the teams' side, it gives them the opportunity to monetize and retain their fan bases more effectively. This is thanks to the creation of digital assets called "Fan Tokens" and the Socios.com platform, developed by Chiliz.

What is a Fan Token?

Fans Tokens are digital tokens representing a sports team. As an example, shortly after the Socios.com application was launched towards the end of 2019, the first Fan Token to be created was for the Italian soccer team Juventus. Subsequently, Paris-Saint Germain, Atlético de Madrid, A.S. Roma, Galatasaray SK, West Ham Unites, FC Barcelona and many other clubs, in turn, created their Fan Token, following a partnership with Chiliz.

How do Fan Tokens work?

With these Fans Tokens, fans are entitled to certain privileges. They can take part in decisions concerning their favorite team, take part in special events, get VIP tickets, or obtain various discounts. To date, over a million fans around the world use Fans Tokens to get involved with their teams.

It's important to note that Fans Tokens can be burned, i.e. deleted, depending on the team's performance. As the number of units is limited, if the results of a sports club prove to be satisfactory (winning several matches, for example), Fans Tokens will be deleted, to create a scarcity effect.

This being the case, these Fans Tokens will be more or less precious and their price will increase. Of course, this will vary according to the team's results, but also according to the famous law of supply and demand.

How do I get Fans Tokens?

The cryptocurrency chz

To obtain Fans Token, fans need to visit the Socios.com app. Created in 2018, Socios is a chiliz blockchain-based platform aimed at connecting fans with their favorite sports teams. Once users have created their account on the platform, disponoble on Android and Apple Store, they will need to purchase Chiliz tokens ($chz) to exchange for Fans Tokens.

Available on all cryptocurrency platforms (Binance, Coinbase, Crypto.com, etc) the crypto chz is the cornerstone of the Socios app. As it is essential for carrying out transactions within the platform, it carries the status of a utility token. The chz token has a total supply of 8.8 billion units and is ranked 75th in terms of market capitalization. It has a daily trading volume in excess of $179 million and is worth €0.12 at the time of writing.

Returning to the Socios app, it incorporates a feature similar to Pokémon Go, called "Token Hunt". Here, instead of trying to find Pokemons using their phones, users must scan their surroundings to try and find various rewards (chz coins, Fans Tokens, discounts, etc).

An ever-growing empire
chiliz

Soccer

With its Socios application at the forefront, the multinational Chiliz intends to conquer all sporting disciplines and gain a lasting foothold in the sports and crypto industry. As we saw earlier, the company has succeeded in forging a number of partnerships with several soccer clubs. These include Manchester City, Arsenal, Everton, Leeds United, Paris-Saint Germain, AS Monaco, Atlético de Madrid, Juventus, AFC, Inter Milan and FC Barcelona.

But that's not all. Chiliz recently announced a partnership with one of the world's leading sports organizations: UEFA. This far-reaching partnership will enable the Socios platform to offer its Fans Tokens in continental soccer competitions. These include the UEFA Champions League, UEFA Europa League, UEFA Super Cup and UEFA Europa Conference League. Giving Socios a very high profile.

Esport

The multinational has also entered the esport market. Since 2010, this market has literally exploded in popularity. Now attracting hundreds of millions of Internet users, this sector continues to evolve and is expected to generate several billion dollars over the next few years. Aware of the potential of this market, Chiliz has succeeded in forging several partnerships with leading esports teams, including : Navi, OG, Team Heretics and Team Vitality.

MMA

Chiliz is also present on the MMA market, following its partnership with the leader in this field: the UFC. Not the least of partners, since according to figures from Moody's Corporation, by 2021, the UFC will have exceeded $1 billion in annual revenues. That's $200 million more than last year. Proud of its new record, the UFC intends to beat it again.

But surprising as it may seem, this partnership with the UFC has not led to the creation of a Fan Token. This partnership enables MMA fans with CHZs to purchase tickets to fights, take part in private events and receive various rewards according to their level of commitment.

This is not the first time that the MMA leader has turned to blockchain technology to strengthen fan loyalty. Indeed, a few months before its collaboration with Chiliz, the UFC teamed up with Dapper Labs to create an MMA-themed NFT collection.

After partnering with MMA's number 1, Chiliz decided to partner with MMA's number 2: the Professional Fighters League (PFL). In 2020, this is the fastest-growing sports club in the world, with over 450 million fans, spread across more than 160 countries.

As the UFC did not create its own Fan Token following its partnership with Chiliz, the PLF became the very first US-based sports organization to launch a token dedicated to its fans.

PFL Fan Token holders can take part in surveys, vote to award prizes to fighters and enter competitions to win all kinds of rewards (collector's edition products, VIP tickets, a meeting with a fighter, etc.).

Formula 1

Chiliz has partnered with two renowned automotive brands, Aston Martin and Alfa Romeo, to launch the creation of Fans Tokens for Formula 1 fans. These Fans Tokens will be used to distribute derivative products, create augmented reality marketing campaigns and allow fans to vote in certain polls.

NASCAR

Chiliz's presence in motorsports is not limited to Formula 1. Chiliz is also working with Roush Fenway Racing, a professional NASCAR team based in Concord, North Carolina. The total supply of ROUSH Fans Tokens will be limited to 5 million units, and will offer various benefits to fans who hold them.

These include participation in decisions made by the NASCAR team (choice of paint schemes on the car, choice of team uniforms, etc.), the chance to meet the drivers, exclusive promotions, invitations to VIP events and much more.

Basketball (NBA)

One of the best-known basketball teams in the USA, the Chicago Bulls, considered to be one of the greatest, alongside the Los Angeles Lakers and Boston Celtics, has entered into a major partnership with Socios. Proud of this partnership with the team in which the famous Michael Jordan, considered the greatest player of all time, played, Chiliz is looking forward to signing further agreements with NBA teams.

American soccer (NFL)

After basketball, Chiliz continues to strengthen its presence on American soil, by establishing itself in one of the most beloved sports disciplines in the United States: American soccer. The multinational has done just that, signing an agreement with the National Football League (NFL). The world's biggest sports league.

Following this agreement, several NFL teams in turn entered into partnerships with Socios. These include the Philadelphia Eagles, Pittsburgh Steelers, Washington Commanders, San Francisco 49ers, Baltimore Ravens, Miami Dolphins, Tampa Bay Buccanneers, Atlanta Falcons, Chicago Bears, New York Giants, Cleveland Browns and Los Angeles Chargers.

Crypto companies

In addition to its partnerships with renowned sports leagues, Chiliz has also managed to forge partnerships with various companies, based in the field of sports and cryptocurrency. Such as: Paratica, Lagardère Sports, Ceyuan Ventures, Enjin, Ok Blockchain Capital, Binance, Bancor and Kosmos.

How far will Chiliz go?

As you can probably guess, Chiliz is not about to stop expanding. The various partnerships listed in this article represent just a small sample of the company's full range of agreements.

With its ever-expanding empire, Chiliz still aims to transform the sports market, using blockchain technology.

And, as time goes by, it's beginning to do just that. With a promising future ahead of it, Chiliz seems to have everything it needs to succeed. Unfortunately, the price of its token doesn't say as much.

Should you invest in the chz token?

Chiliz crypto: an opportunity worth seizing?

After reaching a record price of €0.62 in April 2021, the Chiliz token is currently worth €0.12. This sharp rise, followed by an almost abysmal fall, testifies to the high volatility of the Chiliz token. This being the case, it would not be surprising for many to see it as an asset worth speculating on.

Caution is therefore called for, should you wish to take the plunge. And yet, as you've seen in this article, the price of a chiliz token in no way reflects its true value. Could this be a buying opportunity before the crypto market takes off again? Only time will tell.