Things are looking for utility-based cryptocurrencies that are bringing more than speculations to the table. This week, Chiliz, the fan token of the Malta-based fintech provider, saw a major rally. Why is Fan token Chiliz (CHZ) pumping? The answer lies in the general crypto market movements and the recent update.
Chiliz Soars high with the Latest Pump
After trading sideways just about the $0.15 range, fan token Chiliz crossed the $.020 mark on Tuesday and traded at $0.2128. There is a marginal retrace to $0.2092 at the time of writing, but the live market capitalization is standing pretty at $1.2 billion.
What is the reason behind this sudden pump?
There are two.
- The general market is showing signs of recovery: Last week, Bitcoin was able to punch through the $25k levels after a very long time – giving hope to crypto investors. As renewed faith started to rally the investors behind altcoin – the price of other cryptos rose, including CHILIZ.
- The Pequin Update: The Pequin update is a much-anticipated update teased by the Chiliz team. With that upgrade, the project moves closer to the Scoville network upgrade.
These two factors have given Chiliz a momentary boost. How long that pump will remain is something that remains to be seen.
What is Chiliz?
Chiliz is a cryptocurrency that operates the blockchain-based sports entertainment platform named Socios, offering fans a way to participate in the governance of their favorite sports brands. For instance, holding this crypto will allow the users to make club-related decisions – as the messages captains should wear on their armbands and more.
Simply put, Chiliz is a way to put the fans of the sports on the front page and have them make more active decisions for the sports team they support. Chiliz has partnered with the likes of UFC (Ultimate Fighting Championship) and gaming organizations – giving players more say in more games.
The fan tokens supply is limited, and every sports organization using the Chiliz technology to offer them has to put an initial Fan Token Offering (FTO). The tokens are distributed to the fans on a first-come-first-serve basis. The players can then participate in the events to have a direct say about some decisions of the clubs and sports teams. These decisions range from which brands to pick to which designs to put on players’ jerseys.
Other fan-focused cryptos are also coming up
Chiliz is just one of many Fan tokens available in the market. However, it has proven to be the most successful – until now. Battle Infinity is another project that brings fantasy sports to the blockchain genre. While it is not exclusively a fan token that allows players to make decisions about their teams, it does help them take part in blockchain sports leagues and earn profits.
Battle Infinity is one of the most successful presale cryptos this year and met its presale target 66 days before the end.
Does it mean that it has what it takes to compete with Chiliz? Probably not, and that’s due to the simple fact that the purpose behind these cryptocurrencies is different. One is a sports-competition token, and another one is a fan token.
Chiliz opened 2022 at $0.29 before experiencing and slump at the beginning of march. Updates and better marketing pushed its price beyond the $0.30 zone before retracing. Like most altcoins in the market, Chiliz too hit bottom in May. However, it established a significant uptrend in late July and has increased almost parabolically since then.
We don’t know how long that increase will hold up – but it is a time of hope in the crypto market, and tokens like Chiliz are leading the charge.
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