What is cryptocurrency Chiliz (CHZ) and how does it work?

What is Chiliz (CHZ)?

Chiliz is the company behind the Socios platform and the CHZ token.

CHZ is an ERC-20 token that runs on an Ethereum-based Chiliz blockchain. The token serves as currency that allows users to purchase NFTs at Chiliz’ Socios fan token marketplace.

There would be no CHZ token without Socios. The Socios site lets fans purchase branded NFTs that connect them to their favorite teams and entertainers. CHZ is the currency that allows fans to purchase branded NFTs. It is the only currency that is accepted in the Socios NFT marketplace.

Socios is a full-featured ecosystem for fan tokens. The website and mobile apps allow users to purchase NFTs, to earn them in contests, to trade them with other users, and to exchange them for team-branded benefits and merchandise. The site currently offers branded NFTs for more than two dozen sports and esports teams, with more on the way.

How Does Chiliz Work?

The fan tokens offered for sale at Socios are not mere collectibles. Team-branded NFTs give fans interactive relationships with teams and influence in team decisions. Fans who acquire tokens are able to express themselves by voting in polls run by teams that have become Socios partners. 

For example, the soccer club Juventus FC allowed token holders to select the celebration song that would be played over loudspeakers when the team scored a goal. For eight years, Juventus celebrated goals with a song called Chelsea Dagger. Juventus fan token holders chose Blur’s Song 2 as a replacement, and the team made the change.

Fans of the FC Barcelona soccer club chose a mural to hang on the wall of the team’s dressing room. Fans of the Paris Saint-Germain football club chose a message to be written on the captain’s armband during games. The OG esports team let fans choose an in-game banner that appeared when they played in a charity event. Spain’s Team Heretics esports squad let fans choose the design of a branded scarf they would wear during tournaments and sell as fan gear.

If you have a team-branded NFT for a club that is running a poll, you get a vote. If you have two NFTs, you get two votes. Your influence over decision-making grows as you acquire more of the team’s fan tokens. That creates an incentive for users to purchase and trade and acquire more NFTs.

Teams and entertainers can offer additional benefits for token holders, including premium seats at events, live-streamed meet-the-team events, team-branded merchandise, gamification programs, and leaderboards. As fans acquire more of a team’s branded NFTs, they gain more benefits and a closer relationship with the team.

NFTs are issued by Socios partners in Fan Token Offerings. The tokens are stored on the Socios Proof of Authority side chain. Prices for fan tokens rise and fall according to team popularity and the laws of supply and demand.

History of Chiliz

Chiliz was founded in 2012 as part of Malta-based Mediarex Group, an international sports and entertainment organization. Active work on the blockchain-based Socios platform began in 2018. Chiliz launched the CHZ token in October 2018. The token was soon listed on cryptocurrency exchanges around the world.

The first Chiliz partner was the Turin, Italy-based Juventus soccer club. The team held its Fan Token Offering in November 2019, selling 1.3 million tokens – out of a supply of 20 million – by the end of the month.

Chiliz launched the Socios application and website at the end of December 2019. Development was aided by a $66 million investment by Private Placement.

Today, the Socios app has been deployed on the internet and on millions of mobile devices. In addition to its main office in Malta, Chiliz has offices in France, Turkey, Spain, South Korea, and Brazil.

The company continues to focus on adding soccer and esports teams to its list of partners, but looks forward to adding additional sports and entertainment tokens to the Socios marketplace. The company has recently announced an expansion into the American sports market.

What Makes Chiliz Unique?

Chiliz has a clear vision and a defined business strategy based on fan tokens. Although cryptocurrencies and NFTs can be used in myriad ways, Chiliz sees crypto as an enabling technology for its main business, which is building fan communities.

This focus has helped Chiliz attract investors and moderate the volatility that often shakes cryptocurrency markets. Chiliz isn’t a crypto company, but a company that uses crypto as an essential technology in achieving business goals that have nothing to do with crypto.

NFTs have proved their value in the gaming industry, where they allow users to level up, personalize their profiles, and achieve in-game goals. They are widely used in customer loyalty programs. Chiliz has taken a leadership position in using the technology to support sports teams and their fans.

Socios is an example of an innovative use of NFT technology.

How Many Chiliz (CHZ) Coins Are in Circulation?

Chiliz launched the CHZ token in 2018 without a public offering event. Currently, CHZ tokens are in circulation out of a total supply of 8,888,888,888.

CHZ tokens are compatible with the ERC-20 and BEP-20 standards. They can be purchased at the chiliz.net exchange or other cryptocurrency exchanges, including Kriptomat.

Chiliz CHZ

Buy

Bitcoin BTC

Buy

Ethereum ETH

Buy

XRP XRP

Buy

How Is the Chiliz Network Secured?

The smart contracts behind CHZ and the Socios platform have been independently audited, with the results posted publicly. Chiliz sets aside 5% of revenues for ongoing security and auditing costs.

Token transactions take place on a private sidechain and use a Proof of Authority security mechanism.

How To Use Chiliz

There are two main ways to use the Chiliz platform, Socios, and CHZ.

First, you can participate in the Socios fan token economy. Visit the Socios marketplace, purchase fan tokens for your favorite teams, and you have established a relationship with them. It’s easy to get started. You can even earn tokens by serving as a matchmaker between Socios and new team partners.

The second option is to purchase CHZ as an investment. The Chiliz business plan has proved resilient in the face of crypto market volatility, making the token attractive to investors who seek to minimize the ups and downs of the market’s major currencies.

How To Choose a Chiliz Wallet

CHZ is compatible with the ERC-20 and BEP-20 standards, so you can use any Ethernet-compatible wallet, including hardware wallets, to access CHZ funds and make transactions.

Chiliz maintains an on-site wallet at chiliz.net, which is where most people buy their CHZ tokens. It is an easy-to-use, minimal wallet that is appropriate for an audience made up of sports fans, not cryptocurrency experts.

Of course you are free to store CHZ in the wallet you already use and prefer. Web wallets are free, easy to use, and accessible from the desktop as well as mobile devices. Web wallets are “hot wallets,” meaning that they provide easy, immediate access to funds. They can therefore be somewhat less secure than other alternatives. If you choose a web wallet, make sure to work with a vendor with a good track record in security and custody. 

Hardware wallets provide an extra level of security. Solutions from Ledger, Trezor, KeepKey, and Prokey aren’t free like web wallets, but they ensure that a hacker who gains access to your PC or smartphone doesn’t automatically get access to your crypto funds.

Kriptomat’s free, secure storage solution lets you store and trade CHZ tokens easily. Krimptomat combines enterprise-grade security with user-friendly features.

Bottom line

Chiliz is a sports and esports resource that creates branded tokens that allow fans to interact with teams. The business combines its Socios platform and token marketplace with an Ethereum-based coin and dozens of branded fan tokens to create a complete economy for team-fan interaction.

The CHZ token has two major uses. Some people acquire it so they can purchase fan tokens and support their favorite teams at Socios. Others acquire the token as an appealing investment alternative that is somewhat shielded from ups and downs in the broader crypto market. CHZ could be an alternative or addition to stablecoins in creating a balanced crypto investment portfolio.

Chiliz FAQ

Here are some particulars about Chiliz and the CHZ token.

How To Buy Chiliz

You’re already here at Kriptomat. You can take the next step with a single click. Just visit the How to Buy Chiliz page for step-by-step instructions. It’s fast and easy to start investing at Kriptomat.

How To Sell Chiliz

If you are using your Kriptomat wallet to store CHZ tokens, selling is as easy as it can be. Just use the wallet’s interface to choose your desired pay-out option.

What Is the Price of CHZ?

Chiliz’ price rises and falls according to economic developments, market factors, news reports, and the overall state of the economy. The price is also influenced by the success Chiliz has in attracting new partners to its fan token program and the Socios platform.

The current Chiliz price is EUR and the 24-hour trading volume is EUR.

CHZ is currently ranked of all cryptocurrencies, with a total market capitalization of EUR. It has a circulating supply of and a max supply of tokens.

Register now to get started with this unique crypto asset.

If you’re experiencing any issues or have any questions at all, please don’t hesitate to reach our Customer Support Team. We’re always here to help!