Cryptocurrency dedicated to football has already appreciated 2,400% in 2021 and prepares expansion in Brazil and the USA


Known as a fan token, or fan token, the cryptocurrency Chiliz (CHZ) has already accumulated in 2021 a dizzying expansion of 2,400%.

The utility token is the engine of the blockchain company Chiliz’s partnership with several football clubs around the world, including giants like Barcelina, Paris Saint-Germain, Roma and Juventus, among others. The clubs themselves issue their fan tokens, based on CHZ, to allow new forms of relationship between team and fans.

Listed in Brazil by exchange market Bitcoin and globally by Binance, CHZ has now been the subject of speculation to rise further, especially since the expansion of Chiliz’s offices in Brazil and the United States.

Fabricio Tota, director of the Bitcoin Market, explains about InfoMoney that cryptocurrency is the basis of Chiliz’s platform, Socios.com, which centralizes the launch of fan tokens in partnership with football clubs and even with other sports and modalities, such as the UFC and a series of e-sports.

“Chiliz is the fuel for Socios.com’s ecosystem. She is the company that has the commercial agreements with the clubs and what she did, through Chiliz, was tokenize rights to the fans ”

Until March 29, the CHZ accumulated an increase of 2,395% in 2021 alone, going from US $ 0.02 per currency to an incredible US $ 0.53. According to Tota, the more fans and clubs that are interested in the tokenization of assets and the launch of exclusive currencies, the more the demand for CHZ will increase, impacting its price. The sporting performance of Chiliz’s partners may also stimulate higher prices.

In the Bitcoin Market, CHZ was the most traded asset in March, with R $ 2 billion handled against R $ 1.5 billion in Bitcoin.

Fabricio Tota, on the other hand, recalls that tokens depend on the trust of fans both in Chiliz and in clubs, and if the parties fail to deliver and improve the ecosystem around fan cryptocurrencies, CHZ can collapse:

“These tokens depend directly on the performance and delivery of an enterprise. Cryptocurrencies exist alone, regardless of a company or a club board. If tomorrow there is a breach of a clause and the clubs break the contract with Chiliz, the token collapses. If clubs stop looking for the asset, fan token growth expectations will be dashed and Chiliz’s price will drop “

Maya Siqueira, Binance’s manager in Brazil, says that Chiliz’s expansion expectations in Brazil and the United States, after an investment of US $ 50 million in March 2021, may be catalysts for a new appreciation cycle. Chiliz should set up an office in São Paulo, according to the company’s announcement.

Despite not being a partner of any Brazilian club, the expectation with a Brazilian office is to strengthen relations with the national championships and the teams of the Brazilian elite.

Although it depends on the companies and clubs involved in fan tokens and their products, the risk of illiquidity of CHZ is low, since it already has a large number of buyers and sellers, is listed on prominent exchanges and has formed partnerships with major clubs, factors that reinforce security.

Maya Siqueira recalls that the recommendation to investors is to invest 1% of the right in crypto in general, and that the increase in investments must be gradual, assuming greater risks. She points out that innovation has unlocked new forms of relationship between sports fans and the crypto ecosystem:

“This is a new way of generating revenue, engaging current fans and even attracting fans in new frontiers, since cryptography provides a world without geographical divisions. It is a new and innovative way to globalize a sports brand for billions of people ”

Brazilian clubs have already approached the cryptomercado in recent years. Last Monday, Flamengo announced the approval of the sponsorship of MOSS, a company that developed an ecosystem of tokens backed by carbon credits, also listed on the Bitcoin Market.

READ MORE

BitPrice, the largest marketplace in Latin America. Compare the prices of the main exchanges in Brazil and the world, and buy Bitcoin, Ethereum and USDT at the best price ever.

Create your free account now!


mm

Thomas Miles

Cryptocurrency is the most recently discovered currency which will be likely at the help of modernization across the next few decades. With a limited control from the government, the crypto market is independent of many features of a sound market as we know it. Thomas brings these stories to us by weaving them into articles of general importance to all those looking at the fluctuations in the market, or new entries. Thomas is also the founder of Bulletin Bits and is an excellent leader. His leadership is the kind that makes him the most knowledgeable and experienced on the team. His wonderful work ethic and attitude are worthy of imitation!

Leave a Reply

Your email address will not be published. Required fields are marked *