Chiliz Surpasses $1 Billion Market Cap as Fan Tokens Gains Popularity

UTC by Benjamin Godfrey · 3 min read
Chiliz Surpasses $1 Billion Market Cap as Fan Tokens Gains Popularity
Photo: Depositphotos

Being a specialized fan token creator, Chiliz and Socios.com have launched these unique products for top football clubs around the world including FC Barcelona, Juventus, Paris Saint Germain, and AS Roma amongst others.

Chiliz (CHZ), the native token of the sports engagement platform Socios.com has hit a new milestone, surpassing $1 billion in market capitalization amid ongoing demand for fan tokens. The world of blockchain technology and crypto is seeing a rise in the adoption of decentralized finance applications and Non-Fungible Tokens, giving the Socios-backed coin the springboard for its growth.

Chiliz has truly seen a meteoric rise in its price valuation over time, recording a growth of 1,042% in the past month, and recently hit its all-time high of $0.3126 according to data from CoinMarketCap. As of writing, Chiliz is trading at a market capitalization of $1,415,751,889.49, the highest it has ever recorded since it came into the limelight.

Key Bullish Drivers of the Chiliz Market Cap

Chiliz and the digital token (CHZ) developed by Socios.com, a blockchain engagement platform led by Chief Executive Officer Alexandre Dreyfus, is seeing increased growth in its market cap based on the firm’s recent strides.

As a specialized fan token creator, Chiliz and Socios.com have launched these unique products for top football clubs around the world including FC Barcelona, Juventus, Paris Saint Germain, and AS Roma amongst others. The firm specializes in helping sports outfits debut the virtual tokens from which they can generate funds while allowing holders to participate in key aspects of club management such as choosing jersey designs and other influential operations.

The firm launched the AC Milan fan token on the Binance exchange recently, generating $6 million in just about 30 minutes, a scenario that lends credence to the increasing demand for these customized assets.

Per the performance of its launched digital tokens thus far, Chiliz is projecting an increased debut of more club tokens this year,

“Fan Tokens generated over $30 million in revenue in 2020 that was shared with Chiliz clubs and partners, creating a new digital revenue stream and helping clubs overcome the shortfalls caused by the impact of the pandemic. The Fan Token Market cap currently stands at $194 million. Many more leading organizations from football, other sports, esports, and entertainment are primed to launch Fan Tokens in 2021,” Chiliz said in an official announcement according to a report by Finance Magnates.

Coinspeaker.com also reported earlier this month that Chiliz is planning to expand its operations to New York, with a $50 million planned investment. The US expansion will see the firm build a new office in the country’s most active crypto market, while also seeking a partnership with the top sports leagues for the creation of fan engagement tokens. Per the proposed growth being envisaged by the company, it aims to generate as much as $60 million in club token sales this year.

“We head to the US with a proven track record in generating millions of dollars of revenue for some of Europe’s biggest sporting organisations. In 2020, we shared more than $30 million with our partners, but this year we’re targeting a minimum of $60 million,” Dreyfus said.

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Benjamin Godfrey

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.

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