- Chiliz and Socios.com have already signed important partnerships with prominent football and esports teams to kick-start the platform.
- The project has a great team and has received the backing from some notable venture funds and Binance.
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Technical Analysis by Kong Trading - 02/07/2020
CHZ is coming from a pretty long lasted and lastly exhausted downtrend, which has caused a bounce at a previous basic level. With this bounce, CHZ has created an HTF higher low, which is in itself a bullish sign. Yet, it is approaching an essential area that needs to be broken and re-confirmed to continue this new uptrend.
To read the full Technical Analysis from Kong Trading click here.
Chiliz, powering the platform Socios.com, is an ecosystem for improving engagement between fans and their favorite sports or esports team. The fans get to be closer to their favorite club and get involved in a limited capacity to influence certain aspects of team management. The sports organizations, on the other hand, can improve their communications and relations with the fans, which should lead to increased fan commitment and loyalty.
In what Chiliz calls radical fan engagement, the aim is to provide a platform that enables an exchange between fans and their favorite team with a voting system that is designed to be difficult to compromise. The fans get voting rights to guide some of their favorite teams’ management and strategy decisions with the help of blockchain technology. With Chiliz powering the Socios.com platform, fans can fund, support, and promote any sports or esports organizations. In turn, teams, leagues, or event organizers from any corner of the world can monetize fan demand.
Chiliz and Socios.com have potentially created a crowd management platform for teams, leagues, events, and games across multiple sports.
To ensure vote integrity, the Chiliz tokens and the whole ecosystem have been built with the help of the Ethereum blockchain. The voting system on the self-developed Socios.com platform operates on a permissioned sidechain. The sidechain is managed by the team behind Chiliz and guarantee that all the information related to voting on Socios.com remains auditable and permanent.
The permissioned sidechain hosts every team, league, game title that integrates into the platform, together with each organization’s voting mechanisms. The Socios.com permissioned sidechain is where fan tokens are acquired, sold, and allocated to fans through fan token offerings.
On the permissioned sidechain, the consensus algorithm used is Proof of Authority (PoA), avoiding Proof-of-Work to eliminate high transaction costs. Every block on the sidechain stores polling and decision results.
Any event on the Socios.com platform that includes a transaction of the Chiliz ERC20 token, which may be in the form of accruement of fan tokens converted from Chiliz tokens or account balance exchanges as part of the platform’s other service features – will be stored on the main Ethereum blockchain.
At the architecture level, the Socios.com platform combines its core components across the public Ethereum blockchain and the permissioned blockchain. The platform acts as a bridge between the two chains.
The Chiliz blockchain brings a solution that integrates the fan experience into the team management process. Fan’s voting decisions directly affect real-world sports and esports teams, as well as any other partnered organizations. The sports organizations will still drive the polls and decisions, but with Socios.com, fans get to have some input.
On one side, Chiliz is attractive to global sports and esports fan base. Considering the massive following in the order of billions of people traditional sports like football or cricket have, the target audience is large and broad. The esports scene is also on the rise, with an estimated fandom of around 300 million.
On the other side of the fence, the platform Socios.com needs to target and maintain partnerships with established clubs, teams, and organizations to be able to attract new users and get them interested in their product.
With the help of high-profile partnerships, Socios.com is in a great position to leverage the audience of the respective clubs. For example, one of the partnering clubs – Juventus – has an estimated fan base of 350 million all around the globe, with 60 million being active on social channels.
Naturally, Socios.com will cater to the fan base of every club or team they end up collaborating with.
The Socios.com platform is the main product within the Chiliz ecosystem. The platform was built to give fans the ability to become more involved with their favorite sports and esports teams.
On the other side, Socios.com is a turnkey solution for sports and esports organizations to monetize their fan base via the custom fan token offering, giving fans access to team-branded fan tokens that come with voting rights and access to particular club rewards and engagement opportunities.
Aside from the enhanced fan engagement, the platform can also become a source of revenue for sports organizations. While established teams may not be looking for funding, smaller teams could potentially benefit from a crowd-sourced funding option.
On the platform, fans can purchase their favorite team’s tokens, get voting rights, and become eligible for membership rewards. At the same time, on Socios.com, users can trade different teams’ fan tokens, enabling a whole new marketplace on the platform. The initial price of a club fan token is pre-determined by the issuing team but afterward may fluctuate depending on demand.
Decisions, where fans will have an influencing power, are for engagement purposes, so as not to interfere with a successful operation of the organization. Thus, fans will be able to share their opinion on team-wide decisions like choosing the 3rd jersey design, line-ups in friendly matches, or features for fan offerings. In the case of esports teams, fans can influence decisions on match-ups for exhibition games or practice matches. According to Socios.com, teams that have been built from the start on Socios.com may even provide the option for fans to choose which players are drafted into the team.
Socios.com also aims to introduce league-wide decisions for fans to interact with. This will depend on the league format and how much design space there may be in their respective sports or esports category.
The club decides the initial price of the fan tokens, but it seems like these are priced to be easily affordable. For instance, West Ham have set the opening price of their Fan Tokens at £1 per Token, while Juventus or Paris Saint-Germain set their fan token price at €2. The fan token will always be exchanged from fiat to Chiliz at the time of purchase.
Most clubs will also make it possible for season ticket-holders and members to redeem a fan token for free. Another distribution channel for fan tokens will be via Socios.com’s in-app geo-location, an augmented reality-enabled feature called Token Hunt.
One fan token represents one vote for as long as the user holds the token – it doesn’t get spent every time they vote, and there is no annual cost like a membership fee or a season ticket. According to Socios.com, fan tokens are fungible, and they can be exchanged for other services or features, such as VIP experiences, exclusive merchandise, or tickets.
The Chiliz token is an ERC-20 token issued on the Ethereum blockchain and is regarded as a utility token. Chiliz is the base token against which users can procure fan tokens issued by their favorite club. While CHZ was issued on the Ethereum blockchain, it also has a token representation on the Binance Chain in the BEP-2 token format.
Fan tokens are also regarded as utility tokens that are branded with the name of the partnering sports team or organization. The fan tokens are designed for direct utility within the Socios.com platform. Fan tokens provide holders voting rights to participate in the decision-making processes, feedback polls and surveys related to the sports teams or organizations.
In February 2020, fully integrated with Socios.com, $CHZ is going to be utilized by Chiliz.net exchange to become an exchange/transactional token for the sports & entertainment industry: Fan Engagement, Rewards, Gamification, Trading.
The Socios.com app is live and is in itself free. The platform has already onboarded several high-profile football clubs including Paris Saint-Germain, AS Roma, Juventus, Atletico Madrid, West Ham United, Galatasaray, as well as esports organization OG.
The Socios.com app has already 100k users after less than 3 months.
Chiliz doesn’t have any notable competition in the cryptocurrency space that tackles fan engagement and sports teams’ fandom monetization with the help of blockchain technology.
You can find the full list of team members, advisors & investors here.
Socios.com is a consumer-facing application, and Chiliz is the currency underpinning it. The project doesn’t have a typical technical roadmap and is likely more focused on building network effects by onboarding as many sports organizations as possible and expand its user base.
By the end of 2020, Socios.com plans to on-board over 50 teams from football and other verticals, including esports and other traditional sports such as cricket. At the center of the long-term vision of Socios.com and Chiliz is the development of an open, gamified fan token economy.
Of the total supply of 8,888,888,888 tokens, 34.5% were made available for purchase during the pre-sale and the open token sale. The hard-cap of $66 million had been reached following the ICO conclusion.
The team and seed investors received 1,111,111,110 or 12.5% for their contribution (Team is 5%). The advisors received a total of 266,666,666 which represents 3% of the total supply. The remaining tokens will be or have been partially utilized for the operation and activity of the platform, which is separated into marketing operations, strategic acquisitions and a userbase reserve.
Private Placement Tokens: Some bonus allocations have 4-6 months lockup period but the rest has none.
Team Tokens: 36 months vesting
Advisor Tokens: 18 months vesting
Source: https://www.chiliz.com/en/token-details/ (We suggest you visit this link to learn more about the details)
On the 24th of January, Chiliz revealed their Token Economics 2.0.
The new Token Economics looks as follows.
*burnt. As the $CHZ Smart Contract does not allow direct burning of ERC20 tokens, the "burnt" tokens will be sent to a blackhole address.
The Token Release Schedule can be found here.
The funds allocated to the team as well as the funds for the operation of the platform seem to be stored on the same wallet address:
Blockchain consultation and technology support arm of OKex, one of the world’s leading cryptocurrency exchanges. OK Blockchain Capital focuses on helping promising initiatives in their space raise need capital while providing operational & marketing guidance as well as access to their exchange platform.
A top-tier venture capital firm focused on exploring emerging technologies. Ceyuan Ventures was an early investor in OKex & continues to actively work to help finance and propel established blockchain projects forward. The company was founded by Bo Feng.
Binance is an international cryptocurrency exchange platform and the largest of its kind by trading volume in the world. Acting as more than an exchange enabler, Binance actively works to promote regulated cryptocurrency exchange and adoption across global markets and supports emerging projects.
Chiliz is not an open-source project and as such does not have any public code repositories.
Last Update 1/25/2020
Chiliz’s social presence is relatively strong with over 7.3 K members in the English Telegram community channel and 16.6 K followers on Twitter. Chiliz also has a social presence in the Chinese online medium on WeChat and Weibo.
On top of the Chiliz we should also consider Socios.com's social presence. Socios has 39.6K Twitter followers with high interaction rates. Unlike most of the projects we reviewed so far, they also have big Instagram (37K followers) & Facebook (125K followers) presence.
Their community members are passionate about the project and its success just like they are passionate about their sports teams.
Considering their unique position in the market, Socios.com has been often cited in the news when announcing its partnerships with high-profile football clubs all over Europe.
For all company-related/milestone updates, following the CEO Alexandre Dreyfus on Twitter is a must. He is the voice of the company and overall great narrator of events and accomplishments.
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