Chiliz – how to use CHZ cryptos for fan tokens

In the fields of sports and fan engagement, no cryptocurrency currently plays as big a role as the Chiliz Token (CHZ). This token is the fuel of the Socios ecosystem and the basis of many fan cryptocurrencies. These include the tokens of various football clubs such as Paris Saint-Germain (PSG) or FC Barcelona (BAR). Even the Swiss club BSC Young Boys now issues its own YBO token, a cryptocurrency. But there are also Formula 1 fan tokens that work with Chiliz.

Fan tokens give you privileges

Fans in England or America can buy club or association cryptos and get special privileges with them. For example, they can vote on which design the tour bus should get or get access to exclusive meet and greets. These fan tokens are NFTs (non-fungible tokens). This makes them unique and gives them unmistakable ownership.

The Chiliz token and the role of Socios.com

Chiliz is available worldwide, including in the U.S. and U.K.: the main hub for fan tokens is Socios.com. Fans can buy Chiliz on the platform and then convert this cryptocurrency into the respective fan token. Similar to other cryptocurrencies (for example, Bitcoin or Ethereum), Chiliz can also be held to speculate on a price increase, although the risks must be considered. Socios.com not only handles trading with Chiliz. The website and app is also the provider for the various fan goodies at the same time. The app also serves as a wallet for both fan tokens and Chiliz tokens.

Back in the game: the Ethereum blockchain

The Chiliz network is based on the Ethereum blockchain. Chiliz is an ERC20 token. Accordingly, the entire network is dependent on Ethereum. The Ethereum blockchain calculates and secures the transactions with Chiliz. It is a utility cryptocurrency token whose purpose and use is limited to the Socios platform.

Exchange Chiliz for ERC721 – and back

When you use CHZ on Socios to buy a fan token, it converts them into ERC721 tokens. This is the token standard for NFTs. Subsequently, the fan tokens can be exchanged, for which you will again receive Chiliz. This exchange process is currently only possible on Socios. Socios is thus also the easiest address if you want to buy Chiliz and use them in the spirit of the platform. However, there are also a number of other exchanges where you can purchase the token.

Buying Chiliz on Socios – how does it work?

Buying Chiliz is made as easy as possible on Socios (see our Socios guide and tutorial). After all, they want to attract fans who have never had anything to do with blockchain and cryptocurrencies. All trading is done on the app, and here’s how:

1. First, download the app on the smartphone
2. Then, sign up by entering your phone number. Socios will then send you an activation code
3. Enter it and finish the registration by entering a user name and an e-mail address
4. Then click on “Wallet”, then on Chiliz. Now click on “top up.” Here you then enter the amount for which you want to buy the cryptocurrency

If you want to know how the whole process is: we have written a Socios guide. A bond is also available for art NFTs.

Selling the tokens on the Socios app

Chiliz can be converted into the fan token you want (prices vary depending on the token) or simply held. Fan tokens can also be converted back to CHZ. If you are an English or American investor and want to sell your Chiliz tokens from the app, then you need to look for another exchange and send the cryptocurrency there. The app cannot be used to sell cryptocurrencies so far.

Other Chiliz trading platforms

Bitpanda: Bitpanda is also a good place to start selling Chiliz tokens. You can transfer your tokens to the wallet of Bitpanda to sell them here. Or you can buy the cryptocurrency directly from Bitpanda. The registration process here is similar to many other exchanges.

• First, call up the Bitpanda website and then click on “get started now”.
• Enter your name, an email address and a secure password here.
• Then Bitpanda will send you a confirmation code to the email address.
• Confirm it and the simple registration is complete.

After that, you still need to identify yourself on Bitpanda. This is done by uploading proof of identity and proof of residency for Bitpanda to verify. Then you can select an available payment service under “Deposit” and transfer funds. Then click on “Trade” and search for “CHZ” to initiate the purchase process. You can also sell the cryptocurrency in the same way.

Binance: The largest exchange in the world “Binance” also allows you to trade CHZ. Holders can also trade the cryptocurrency on decentralized exchanges (DEX) such as Uniswap. However, this is only possible in a roundabout way. Holders have to convert the cryptocurrency into a BEP2 token of the Binance smart chain which works with metaMask, see our tutorial. Interested parties can find out exactly how this works here. Furthermore, the token can be converted as a TRC20 token of the Tron blockchain.

Other trading platforms: The purchase and sale of Chiliz tokens is also made possible by the US exchange Coinbase. This is one of the largest exchanges in the world and has been on the crypto market since 2012. At Coinbase as well as at Binance, users must first register and identify themselves if necessary.

Who is behind the Chiliz project?
The company "Chiliz" has already existed since 2012 as part of the Mediarex Group. Based in Malta, the group primarily serves the sports and entertainment sectors. Work on the blockchain and cryptocurrency began in 2018, and among its first partners is the Juventus Turin football club. The club's fan token let itself be traded for the first time in December 2019. Subsequently, Socios entered into further partnerships with many clubs. The company's CEO is Alexandre Dreyfus. The crypto man was previously responsible for Chiligaming, an online poker company, among others. He was also the head and co-founder of WINAMAX, a French website for online poker and sports betting.

See article about Borussia fan token
See the insights about football tokens

Advantages of the Chiliz blockchain

In an interview, Alexandre Dreyfus extols the benefits of blockchain. He says there are two justifications for choosing blockchain technology. “The first reason concerns the technology. We needed a foundation that was transparent. And in which information cannot be changed – that was the blockchain.” In addition, he said, there were legal aspects involved. One wanted to ensure transparency, he said. “For a fan to have binding voting rights, we need a token system where the token is tied to rights,” Dreyfus says.

Is it worth investing in the Chiliz token?

CHZ can be held without investing in any fan token. The price performance in the spring of 2021 shows that this can be worthwhile, but whether this will be repeated is not certain. Two factors affect the CHZ price: the overall crypto market sentiment and the success of Socios.com. The latter can be described as a successful venture so far. The Socios network is growing, new partnerships are announcing themselves, and more and more associations are releasing their own fan tokens.

Market is still young – caution is advised

CHZ’s total supply is capped at 8,888,888,888 tokens. More will not be distributed in the future (at least that is the plan). There are currently 5,344,000,000 of them in circulation. As the demand for more fan tokens increases, the value of the Chiliz cryptocurrency should theoretically increase as well. After all, the supply is limited. At the same time, fan tokens are still a fairly young market. A certain amount of caution is always advised – the risks of tokens are well known. Especially in terms of bubble formation and artificial hype.

The price of CHZ from 2019 into 2021

The price of the Chiliz cryptocurrency can be determined since July 2019. At that time, the CHZ price entered the market at around $0.017. By December 2020, a steady decline in price began to emerge. In September 2019, for example, the price slipped to US$0.0041. It was not until 2021 that the price picked up significantly. Over the course, the price increased by more than 4000 percent compared to the starting price. Since then, the price has leveled off around US$0.30 (see table below).

"Token standards" - defined in the smart contrac
What exactly are "token standards"? They describe a group of tokens that have a specific purpose. This purpose is defined by smart contract. They make it easier for users to create their own cryptocurrencies. Many "utility tokens" are based on Ethereum's ERC20 token standard. For non-fungible tokens, the ERC721 token standard is the foundation. Blockchains like Ethereum's (all with ERC) or the Binance Smart Chain (BEP) offer their own token standards.

More about smart contracts

FAQ – Frequently Asked Questions