Chiliz, a Malta-based sports tokenization company using blockchain, has taken centre stage in the crypto world after becoming one of the most traded assets over the past week following a meteoric rise in its price valuation.
Chiliz ($CHZ) is now trading at $0.594144 at the time of writing with Blockchain News reporting that it reached a market cap value of $$3,292,386,377 marking over 300% gains over the past week.
It comes just after Paris St Germain beat Barcelona FC to advance to the quarter-finals of the UEFA Champions League, in which a $550 million digital fan token frenzy ensued as the club took to Twitter to promote its Fan Token.
Forte demande de $PSG Fan Tokens suite à la qualification pour les ¼ de finale !
— Paris Saint-Germain (@PSG_inside) March 11, 2021
Following PSG’s win, the club’s own token ($PSG) rose by nearly 110% and had a knock-on effect on the prices of other Fan Tokens, including Juventus($JUV), which shot up by 79%.
It also had an effect on Chiliz’s own token too which registered a growth in market cap from $100 million to over $3 billion in just a matter of four weeks.
As such, the sports tokenization platform became the ninth most traded crypto asset with Chief Executive Officer Alexandre Dreyfus taken to Twitter to celebrate the news.
Today, @chiliz $CHZ is the 9th crypto asset traded (as per @CoinMarketCap). Incredible. Thanks for your support and for following our long-term vision. Up or down, volume or not, we are building every day what will be a game-changer for the sports industry. Block by block.
— Alexandre Dreyfus (@alex_dreyfus) March 11, 2021
Socios.com is the Fan Token platform facilitating the Chiliz currency, with ties to some of the major football clubs around the world including PSG, Barcelona, Roma and Juventus.
A Fan Token is a digital asset which supporters of a specific club can buy. An owner of a Fan Token is provided access to the VIP rewards, exclusive promotions, and voting rights on club decisions, such as kits, among things.
Other industry professionals have likened Chiliz’s surge to the increased demand of Non-Fungible Tokens, with the NFT market reaching a total transaction volume of $342 million – a 7450% increase from last year.
Chiliz’s price also experienced a boost following the announcement that the blockchain company will be tapping into the American sports industry with a $50 million expansion.
“Fan Tokens generated over $30 million in revenue in 2020 that was shared with Chiliz clubs and partners, creating a new digital revenue stream and helping clubs overcome the shortfalls caused by the impact of the pandemic,” Chilliz said in an official statement.
“Many more leading organizations from football, other sports, esports and entertainment are primed to launch Fan Tokens in 2021.”
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