Chiliz (CHZ) increases 60% to a market capitalization of USD 1 billion as the supply of fan tokens expands

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Nonfungible tokens (NFTs) and decentralized finance (DeFi) are two of the hottest concepts in the crypto sector and are changing the way projects and companies interact with the public on a large scale.

One project that aims to apply these concepts in a sports fan engagement framework is Chiliz, a blockchain platform created by the Socios platform for fan engagement. The project aims to enable fans to purchase branded fan tokens that they can use to influence their teams through the referendum.

According to the project website, all fan tokens are minted on the Chiliz blockchain, with voting on the platform taking place via a series of smart contracts.

Data from Cointelegraph Markets and TradingView show the price of Chiliz (CHZ) rose 760% over the past month, rising from $ 0.022 on Feb. 8 to a new all-time high of $ 0.189 on March 8th. Record of $ 1.92 billion.

CHZ / USDT 4 hour chart. Source: TradingView

The platform currently offers fan tokens for some of the world’s most popular sports teams, including FC Barcelona, ​​Juventus, Paris Saint-Germain, AS Roma, Galatasaray and Atletico de Madrid.

The token launch sparked a strong rally

Momentum for Chiliz began to gain momentum in late 2020 when the platform partnered with Binance on February 24 to launch the ACM fan token for AC Milan. The launch earned the CHZ ecosystem $ 6 million in revenue.

ACM is part of a network of 23 major sports and sports organizations that also plan to partner with Chiliz on the launch of Fan Tokens.

The CHZ award received an extra boost on March 2 when CEO Alexandre Dreyfus announced that the project would allocate $ 50 million to expand business in the United States. There are already plans to partner with local leagues and sports franchises.

Cointelegraph Markets Pro’s VORTECS ™ data identified an optimistic outlook for CHZ on March 1 ahead of the recent price hike.

The VORTECS ™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points such as market sentiment, trading volume, recent price movements and Twitter activity.

VORTECS ™ Score (green) vs. CHZ price. Source: Cointelegraph Markets Pro

As can be seen in the graph above, VORTECS ™ hit a high of 66 on March 1st, less than 5 hours before the price of CHZ began to break above $ 0.06. After rising and consolidating above $ 0.11, the VORTECS ™ score rose to 69 on March 6, two days before the price hit a new all-time high.

Right now, Chiliz is in ongoing talks with Formula 1, and if the team is able to include popular U.S. sports teams, the project could be well positioned to see further growth as blockchain technology and NFTs move more into the sports industry to get integrated.

The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading step is associated with risks. You should do your own research in making your decision.