Last Updated on July 15, 2022 by Shounak
An article on The Washington Post calls crypto volatile which means the prices can fluctuate significantly and sometimes those that are influenced by outside forces can perform better.
For example, Chiliz ($CHZ) is a cryptocurrency on blockchain technology that allows people to purchase fan tokens to support their favourite teams, thus a digital currency in the sports industry. So, Chiliz is not wholly reliant on the crypto market, instead, it is backed by sports fan tokens.
If you are new to these digital investments, fan tokens are digital assets that fans can purchase using Chiliz, and in exchange receive special benefits and privileges. Socios fan tokens are the most popular on the market and have signed numerous major soccer clubs like Paris Saint-Germain ($PSG) and Manchester City ($CITY), as well as the UFC and Formula One teams.
With these major sports organizations already invested in fan tokens, Socios movements in the industry can positively affect the price of Chiliz. If more leagues sign with Socios fan tokens, like the NFL, they can be the catalyst for a price hike, both for the fan tokens and the Chiliz coin.
Socios North American expansion has already begun and has extended its reach into the NBA. 24 NBA teams have signed with Socios with the goal to change the fan experience by transforming them from passive to interactive fans.
But the Socios expansion didn’t stop with North America and Europe. The company announced it is now targeting fan token launches in Asia and South America as well.
The worldwide expansion would make it a global digital asset backed by sports teams from every continent, thus the value of Chiliz could rise even further, assuming that all the big sports organizations use them.
There is another type of sports digital asset that some athletes are using. UFC Women’s Champion Julianna Pena started using a super-fan Non-Fungible Token (NFT) to allow her fans to meet her before fighting in the Octagon.
The superfan club concept gives fans special privileges that nobody else gets, like being in the locker room, walking out with the corner and being in the corner during the fight.
The ideas behind improving the fan experience are out there with other types of crypto, but with all things considered, Chiliz is the predominant crypto for maximizing the fan experience.
Let’s compare the volatility of the most popular crypto, Bitcoin. In November 2021, Bitcoin hit a record high of $68,990. In June 2022, Bitcoin began to crash after inflation skyrocketed and an anticipated announcement from the Federal Reserve regarding an interest rate hike.
Bitcoin crashed to $19,420, losing more than 70% of its value in just 7 months. While an astute investor can make big profits from volatility, huge losses can also accumulate if you are not cautious.
And Chiliz isn’t immune from that sort of drop, but it could be insulated because it is tied to the sports industry, so if the sports market is strong, Chiliz could strengthen as well.
If the majority of the world’s leading sports teams and leagues signed with Socios fan tokens, this could skyrocket the price of the fan tokens and make Chiliz the dominating cryptocurrency in the sports industry.
In the End
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