CHZ loses 12.5% following ChilizX withdrawal issue announcement

Crypto exchange ChilizX warned users about a ‘withdrawal issue’ related to the Chiliz Legacy Chain network.

ChilizX, a dedicated platform for fan token trading, disclosed in an X post on Jan 22 a “withdrawal issue” related to the Chiliz Legacy Chain network, providing limited details on the nature of the issue. In the post, the ChilizX team recommended users opt for fan token withdrawals using an alternative network known as Chiliz Chain (CC2).

In the announcement, ChilizX urged users not to withdraw fan tokens using the Chiliz Chain to a Chiliz Legacy Chain address. While the exchange’s team reassured users of active efforts to resolve the matter, questions arose as some reported successful withdrawals via the network on other crypto exchanges.

Following the announcement of the ChilizX withdrawal issue, the native cryptocurrency of the Chiliz ecosystem, the CHZ token, witnessed a sharp decline of over 12.5%. As of press time, CHZ is trading below the $0.1 mark, ranking as the second-worst performer in terms of price over the past 24 hours, according to CoinGecko data.

Chiliz, a blockchain platform with a focus on sports and entertainment, anchors its ecosystem with the CHZ native token. Within this framework, the Chiliz Chain network emerges as a potential successor to the Chiliz Legacy Chain, featuring an on-chain governance system compatible with the Ethereum Virtual Machine (EVM).