Chiliz (CHZ): Cryptocurrency for Sports and Entertainment
Chiliz (CHZ), a cryptocurrency for governing sports brands, creates unique sports and entertainment opportunities for its holders, including fan tokens and club-related decisions.
What Is Chiliz?
Chiliz integrates blockchain technology with the growing demand for sports and entertainment services provided by fans from different parts of the world. Chiliz provides new functionality both for fans and owners of sports clubs. Thus, fans receive an opportunity to support their favorite clubs and participate in decision-making regarding many daily issues. Similarly, club owners can closely connect to their fans and generate additional revenue flows for expanding their businesses. Every club can issue a selected number of tokens that is officially proclaimed in advance. CHZ is used for making such purchases and maintaining the functionality of the entire system. Chiliz has been already adopted by the major soccer clubs, and it is likely to become the leader in this segment when collaborating with new famous sports clubs.
CHZ’ current price equals $0.2749 with the circulating supply of 6.00 billion tokens. Its maximum supply is 8.88 billion, thus its market supply may continue to gradually increase in the following years. Its market capitalization is about $1.65 billion, making it the 67th largest cryptocurrency. The rapid development of the sports segment during the post-COVID-19 period may imply the growing demand for CHZ from both fans and institutional investors. At the moment, Chiliz considers additional options for the enhanced participation of CHZ tokens’ holders in clubs’ activities and performance. The company also aims to increase its presence in Europe and Asia as a way to diversify its operations and achieve a more sustainable performance.
Reasonability of Investing in CHZ
As the global sports industry demonstrates high rates of growth, there is a high demand for innovative blockchain solutions that can effectively address the major technical challenges that exist in this regard. Moreover, the entertainment and sports sectors tend to become closely integrated with one another, thus creating additional opportunities for generating high returns for those clubs and companies that offer appealing products and services to a broader audience in different parts of the world. Therefore, CHZ may be considered as being one of the most potentially profitable investments for long-term investors.
Regarding the short-term dynamics of its price, CHZ can rely on the following major support levels: at the prices of $0.15 and $0.24 respectively. The former constitutes the local bottom within the past several months, while the latter was tested several times, thus providing additional protection from negative external factors. However, CHZ may become able to approach its historical maximums only after successfully overcoming the key resistance level at $0.33. Its ability to achieve this objective will largely depend on the overall dynamics of the crypto market and the interest demonstrated by the major clubs from different sports in terms of actively collaborating with Chiliz regarding their blockchain activities as a way to expand their fan base in the following months.
