Buy Chiliz (CHZ)
What is cryptocurrency CHZ in simple terms?
Chiliz is a payment and cryptocurrency platform used for blockchain-based services and products aimed at the mass consumer.
Chiliz operates predominantly in the sports sector, especially football, providing a unique way to attract fans, allowing various organisations to incentivise and monetise audience participation.
The token was developed based on the Ethereum decentralised network. The standard is ERC20. The coin was created for its online platform.
Through the platform, users can exchange Chillz for fan tokens. Holders of these branded altcoins participate in polls, receive rewards, earn loyalty points and earn spots on the leaderboard.
But more importantly, they influence their favourite team.
So on 11 February 2021, FC Milan launched the ACM token. Holders could vote for the best team slogan of the playing season. The most popular slogan would get the most votes in the Giuseppe Meazza stadium changing room. And Juventus coin holders voted for the song that will play when the goal is scored.
Where do Chiliz come from?
The CEO of the project is Alexander Dreyfus. Previously, he worked as director of application development at Scientific Games and was the founder of the popular poker room ChiliPoker. The idea to create a blockchain platform for interaction between sports fans and teams appeared back in 2016. But active development did not begin until two years later.
The blockchain project is owned by HX Entertainment Limited, registered in Malta and operates under its laws.
In 2018, 8.8 billion coins were generated. During the private placement, tokens were pre-sold to pre-selected investors and companies. One of the contributors was the Binance exchange.
The company managed to raise $66 million, most of which went into developing a fan platform, a website for selling fan coins (Fan Tokens) for sports teams. Essentially, it is a tokenised voting right combined with a way to support your favourite club. Ownership of the tokens entitles the user to participate in the promotions of each club individually.
The distribution of the collected money is shown in the table below.
|SHARE||AREA OF APPLICATION|
|58%||Operating costs for developing the platform and setting up the digital infrastructure.|
|20%||Recruitment of new members.|
|10%||Corporate structuring for free-standing autonomous activities. This is the basis for the development.|
|5%||Legal advice (adapting operations to European and other global markets) + security support.|
|7%||Development of the project ecosystem, the conclusion of partnership agreements.|
About Fan Tokens
Fan Token Offerings (FTOs) are similar to cryptocurrency token allocations. They are a fair way of issuing fan tokens on the platform for new partners. A fixed price for each fan token is agreed upon before the launch.
A portion of the total amount of fan tokens is then made available to the platform users, after which it is put on the open market. Thus, it allows fans to get early access to the tokens.
The company has more than 25 partners, and there have been 23 Fan Token Offering. Furthermore, users have completed more than 120 sports surveys and received rewards for doing so. The total number of transactions carried out by the summer of 2021 is 635,365 transactions.
Chiliz Cryptocurrency features
If you want to buy CHZ, you should know that it is based on the blockchain platform of the same name and is the only coin for transactions on the platform.
Its main feature is that it is narrowly focused on the sports and esports market only. At the same time, it ranks first in popularity among fans, as it opens up access to the platform's full functionality.
The primary tool of the project is the exchange.
You can buy fan tokens for the cryptocurrency CHZ. Holders of such digital assets can participate in polls and votes conducted by clubs, receive rewards and influence the marketing decisions of their favourite teams. Football clubs Barcelona, Manchester City, Juventus, Milan, the UFC and other teams and sports leagues collaborate with the blockchain platform.
Companies that issue fan tokens increase audience engagement and receive a convenient tool for monetisation.
In 2020-2021, financial support for fans was particularly relevant because of the pandemic. Sports organisations incurred significant losses due to match cancellations, breaking agreements with sponsors.
The fintech platform, through the use of blockchain technology and the convenient option of quick token generation for teams, has shown how the sports industry can receive additional funding in today's digital world.
How does Chiliz work?
If you want to buy into Chiliz, let's look at the ecosystem's main components and features to understand better how Chiliz works.
- Blockchain architecture.
Chiliz uses an exciting architecture for its blockchain-based platform.
The Ethereum core chain serves as a platform for the project's CHZ token transfer ERC-20. Such transactions include fan deposits and withdrawals, as well as aggregation of service and exchange fees.
In addition, the CHZ repository, which is a public registry of CHZ transactions and the place where all unburned fan tokens supported by CHZ are securely stored, is also on the leading Ethereum network.
Here, users can purchase fan tokens from clubs and teams through fan token offerings (FTOs). In addition, members of the network can also use the Chiliz Exchange to exchange fan tokens for CHZ and other cryptocurrencies.
Instead of Ethereum's energy-intensive Proof-of-Work (PoW) mechanism, the Socios sidechain uses the Proof-of-Authority (PoA) consensus algorithm to manage the network.
As a result of this architecture, the Chiliz blockchain can achieve high scalability with fast and cost-effective transactions, allowing users to verify every record in the ecosystem to maintain Ethereum's high level of transparency.
On the other hand, we should note that the PoA algorithm has increased centralisation, especially if we compare it to highly decentralised consensus mechanisms such as PoW and Proof-of-Stake (PoS).
Interestingly, each partner organisation's mass voting mechanism operates as a semi-autonomous organisation.
- Fan tokens.
Fan tokens are arguably the most critical components of the Chiliz ecosystem.
Offered by clubs and teams through fan token offerings (FTOs), fan tokens represent voting rights for the owners and the ability to unlock VIP rewards and gain access to exclusive promotions, events, and communities.
Interestingly, fan tokens on Chiliz must have an initial value tied to CHZ. This is a fixed base price in CHZ, determined by the teams selling the coins during FTO. Fan tokens are available in limited quantities and are sold to users on a first-come, first-served basis.
After a successful FTO, holders can trade their fan tokens on Chiliz Exchange and third-party trading platforms that collaborate with the crypto project.
Notably, users do not need to spend fan tokens to participate in the teams' decision-making process. Instead, it is enough to hold coins (the more fan tokens you have, the more you can influence the club's decisions) to vote in a poll.
On the other hand, the owners have to spend the fan tokens to buy teams or unlock VIP awards.
- The Chiliz Exchange.
Chiliz Exchange serves as a trading platform for buying and selling CHZ, fan tokens, and other cryptocurrencies (e.g. BTC, ETH).
While they serve the same purpose of trading CHZ tokens and Chiliz Exchange fan tokens, it is not the same platform as Socios.
Chiliz Exchange is a centralised trading platform.
The platform charges trading commissions for buying and selling tokens as part of the Chiliz business model.
- Chiliz Blockchain Campus.
It is also vital to mention Chiliz Blockchain Campus, a crypto start-up accelerator and industry hub that connects industry stakeholders with emerging blockchain projects in Europe and Asia.
The Chiliz Blockchain Campus, located in Malta, is privately owned by Chiliz.
Where to buy Chiliz?
If you are going to buy Chiliz in Qatar, you should be aware of the ways to buy.
The altcoin has high liquidity. It is bought/sold on dozens of exchange websites. In addition, it is listed on major centralised exchanges and DEX.
Ways to buy:
- Buy on CEX and DEX;
- Receive from another user;
- Purchase through an exchange website;
- Buy on exchanges.
Buy on exchanges
The token is one of the top 100 in terms of capitalisation. It is traded on its platform and other popular exchanges: Binance, Huobi Global, KuCoin, BitFinex. There are also decentralised ones, such as Uniswap.
A user can also log in to third-party resources. However, this is a riskier way to buy/sell, + the amount of tokens is limited. Therefore, it is crucial to choose an exchanger with a good reputation.
You can get altcoins from another person to an exchange account or wallet. With a private arrangement, all the risks are on the user, but you can agree on any price.
How to start investing in Chiliz (CHZ) in Qatar?
Users can make a profit on their coin transactions. Both long-term investments and trading are promising. You can invest not only in Chiliz but also in Fan Tokens. So, if you are considering how to invest in Chiliz in Qatar, here are some basic earning options:
- Transactions in Fan Tokens.
The prices of fan coins vary too. Users can invest for the long term or engage in trading. Transactions are made on the project's exchange. Especially fan tokens may increase in value as a result of team successes or advertising campaigns.
The token price has changed by 457.36% in one year (as of July 2021). Investors who bought coins at the launch have already made huge profits. The rate is projected to rise to $1-1.5 in 2021-2022. In the summer of 2021, it stands at $0.24. Thus, this token could be seen as a promising option for long-term investment.
The high volatility of the altcoin makes it possible to profit from changes in the exchange rate. Traders can participate in spot margin trading (the amount of leverage depends on the platform). Earning employing CFDs is especially relevant. We will write about it in the article below.
What is CFD trading?
CFDs (Contracts for Difference or CFDs) are a popular form of derivatives. They are derivatives that allow you to trade assets in world markets without actually owning them. Typical examples of derivatives are options, futures or swaps.
With CFDs, you don't get ownership of tangible assets. Instead, you receive the difference in the underlying asset price between the opening and closing of the contract. This closing or the expiry date is not fixed, which makes CFDs different from other forms of derivatives such as futures. Your contract can be either short term or long term.
One of the advantages of trading CFDs is that you can speculate on price movements in either direction, whether up or down. Of course, the profit or loss you make depends on whether or not your forecast comes true. With CFDs, you can trade various assets, including currencies, stocks, indices, cryptocurrencies and commodities.
How to Buy Chiliz right now?
If you want to start earning with Chiliz, choose a reliable broker and register online.
You will then go through a short registration process. Once you have completed the registration stage, the platform allows you to trade with virtual money on your demo account. That is great for getting familiar with the platform and trading without losing money.
The lack of psychological pressure and emotional strain is very debilitating for you. You will become inattentive to your trading. You may stop putting stops and trading as you see fit. So as soon as you feel like trying real trading, make a minimum deposit and start trading!
Believe in yourself and your power. Learn, calculate risks and earn!