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What is Chiliz
Introduction
What is Chiliz and if this coin can come back to game? All of this in this article and a few things more. I was concerning about writing about coins what had their hype behind and can never recover from that, but… Anyway, I am writing about Chiliz project.
In this article about origins, token distribution and supply, partnership, but I won’t finish there. Of course, I will writing about price in depth and future.
Please read, share and comment it!
Let’s get start it.
About Chiliz Token
Chiliz is first blockchain dedicated for sport fans. Chiliz token is an ER-20 token built on Ethereum blockchain. This token is backbone of whole ecosystem, but about ecosystem little bit later.
This utility token is used to facilitate transactions within the Socios platform. Fans can buy team-specific “fan token” that grant them voting rights, access exclusive merchandise. Taking part in decision-making process, as well.
After that writing let jump into tokenomics of this project.
More about Token
I would write at first about origin and then, tokenomics. Tokenomics were upgraded after hard fork. After this upgrade in 2024 model featuring a gradually decreasing annual inflation rate and a perpetual token burn mechanism as like is written on development documentation.
I come back in the minute to this, but before let take a look for origin and token distribution.
Origin
Chiliz was born as visionary idea in 2016. Future of monetization in sports and entertainment industries is transforming passive fans into active participants – whole idea behind project.
Is it right? Alexandre Dreyfus, serial entrepreneur and Chiliz team decided prove the idea in 2018. In the same year Alexandre raised an impressive $66 million through a private sale. After that, Socios platform came to life as first application build on the Chiliz blockchain.
It’s very inspirational entrepreneurial story. Projects itself make sense as well.
Tokenomics Distribution
When you interpret this model for team, advisory board, strategic acquisition and marketing operation is 38% of all tokens.
In this moment circulating 9,3 milliard tokens. What interesting is maximal supply is unlimited. Token is deflationary after upgrade. Very nice, indeed.
Token Supply
What about token supply? After 14 years (from hard fork) inflation would be 1,88% and every year number of circulating tokens will increase. One more thing… As far as, increase supply, but inflation decrease.
New model give this project completely new phase. I mean by that, projects can be developed by years. The key point is exactly tokenomics. For this reason one very important conclusion:
For project success very important is smart tokenomics. The best if it’s deflationary model, because it’s creates buy pressure.
Down below you can see inflation visualisation.
New supply model is designed smarter without any doubt. Deflationary model, growing steadily supply,…
Picture are from official documentation Chiliz project.
What about Chiliz Ecosystem?
Next in the row is ecosystem. If project is great then ecosystem around this project need to be even better. One of the best examples is Ethereum. I think a lot of projects simply copy model of Ethereum.
A lot of them first build own project of blockchain Ethereum and after some time switch to own brand new blockchain. Example – Binance Coin! Wait, a second. I have far to much written about side topic.
For sure, Chiliz is leader of SportFi and a lot of partnership is taken. Different kind like marketplaces, through infrastructure, custody and… Obviously, fan tokens.
Ecosystem still growing and on official website in sections ecosystem you can read by yourself about it. A lot of happening there.
Take a look over there if you are really curious.
A few about Chiliz Blockchain
I wrote quite a lot about token and its origin. I haven’t write about blockchain itself and it’s time to change it.
The Chiliz ecosystem is built upon a robust and scalable blockchain infrastructure, designed to support the growing demand for fan engagement and transactions.
The Chiliz Chain, an Ethereum-based side chain, operates on a Proof-of-Staked Authority (PoSA) consensus algorithm. Overall, ensuring high throughput, low fees, and seamless integration with the Ethereum network.
Simply as it should be. At this point you know something about project – origin, tokenomics, blockchain and idea behind.
What about price? Is is price convince new investors?
Chiliz Price in Depth
Over 5 years on the market. Pretty interesting conception. In this moment price 90,8% down from All Time High. What else?
1st Bear Market
Project was launched during bear market, so after initial launch price raised and then fall down to All Time Low – $0.004109. First price was $0.017. In my opinion it was low price. Till March 2020 price were is side trend. It’s changed obviously.
1st Bull Market
In March 2020 price land on level little bit above All Time Low – $0.0057. Still it was very attractive price. As like probably you know bull market were before November 2021. If I am counting good it was about 18 months when prices on cryptocurrency market went ballistic!
The period from March 2021 to November 2021 can be described as “To the moon”. A typical mania in which it is difficult to see the price ceiling.
But what is all that mean for Chiliz? How far price went to the moon?
Take a look. Jan 2021 – $0,02. Ok, what’s then? March 2021 – $0,75. Clearly All Time High on Chiliz were earlier than on Bitcoin price.
Growth? About 37 times during 16 months. Very nice, very nice! Time for bear market…
2nd Bear Market
In case of bear market it was 2 years. Maybe, not exactly but still very close to 2 years. End of bear market it was at price $0,055. Again… if you keep the project without selling then it could be devastating for your psyche. Lost – 99,5 or more precent.
2nd Bull Market
In August 2024 you can notice first sight of bull market. Before that price were in side trend. What is not surprising, because most of the time is. August price – $0,05 and today is $0,08. Bull market and profit 60%. Let’s see what happen next.
Future of Chiliz
It is very difficult to assess what the future of the project will be. The changes made in tokenization and the continuous development of the ecosystem cast a positive perspective on the project.
Without funding, the project cannot survive and access to this data is limited.
From the price point of view, there is no significant excitement among investors despite the 2-year bull market.
Conclusions
Chiliz is a really interesting project. The concept of tokenization for sports fans certainly has a future. Chiliz is the first SportFi project and a Layer 1 project.
From a price point of view, I don’t see much excitement, which is surprising.
Investment grade – the price is 90% from All Time High, but will investors return to this investment?
The risk is high, but the profit may turn out to be equally satisfactory. Of course, when capital will flow back into this project.
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