Sabrina Martins-Vieira
Chiliz’s uptrend has already lost momentum with the arrival of the World Cup and may continue on its downward path
contents
- Why is there so much hype about Chiliz?
- Can Chiliz continue to perform well?
Chiliz (CHZ) was one of the tokens that drew the most attention with the arrival of the World Cup. Within a few days, the altcoin managed to go in the opposite direction of the market and went up while Bitcoin (BTC) and the altcoins corrected. But is this performance by CHZ sustainable?
First you have to understand what Chiliz is. CHZ is the main token of Socios.com, a blockchain-based sports and entertainment platform.
Socios has gained notoriety in the crypto market as it allows its users to participate in the management of their favorite sports brands.
With the growth and development of the blockchain industry, several football teams have launched their fan tokens on Socios.com. As a result, token holders from teams like Barcelona, Paris Saint-Germain and Juventus can participate and influence decisions regarding the clubs they admire.
Anyone who wants to buy fan tokens must buy CHZ. In this way, it manages to advance the football industry and connect to the blockchain market.
Why is there so much hype about Chiliz?
Socios.com launched the tokens of teams participating in the World Cup such as Portugal and Argentina. Hoping for high volatility and possible profits these altcoins could bring during the event, investors looking to speculate bought CHZ.
It is also important to highlight that the altcoin is related to multiple teams, not just one. This allows it to attract more users, which could impact its price with the help of analysts betting on the token’s rise.
Chiliz saw a 37% increase in just 20 days. Compared to Bitcoin, the primary cryptocurrency has grown by just 3% over the same period. Additionally, on November 7, 2022, CHZ hit $0.29, a price the altcoin had not reached in seven months.
Can Chiliz continue to perform well?
Since the start of the World Cup on November 20th, CHZ has had a 30% correction, showing that its rise was unsustainable and was only due to hype.
While the token has its utility, being an engine of crypto adoption and bringing fans of one of the world’s top sports into the blockchain industry, CHZ lacks the hotspots that would ensure it holds a solid high outside of the soccer championship season or after its launch a team token.
For Chiliz to increase in value in the years to come, Socios.com needs to do well. This is because CHZ is a utility token and relies precisely on the engagement of its platform for it to grow.
It should be noted that not even the partnership between Socios.com and FanFest has resulted in CHZ seeing positive price action. The platform has partnered with the leader in virtual events and streaming to allow Fan Token holders anywhere in the world to earn exclusive rewards.
If you are considering investing in CHZ and think it could appreciate in the coming months, remember that everything will depend on market timing and investor interest in the token, just like other altcoins.
Chiliz is designed to convey the relationship between fans and their favorite club, player or league. Therefore, this purpose will not be fulfilled, but a sustainable increase in the token will not be seen.
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