Fan Token Offering (FTO) and US expansion – Chiliz rises 370 per cent
Since the beginning of 2021, Chiliz (CHZ), a blockchain project focused on the sports and entertainment industry, has grown by over 1,000 per cent – but what exactly is behind the project?
Non-fungible tokens (NFT) are currently one of the most hotly discussed topics in the crypto space. Chiliz wants to be a crucial point of contact in this regard. In the past week alone, CHZ rose by over 370 per cent. At the time of going to press, the price of the cryptocurrency is at 0.2758 US dollars.
Football clubs FC Barcelona, Juventus Turin, AC Milan and many others are already on board. Through the blockchain project Chiliz, various sports clubs have earned a Bitcoin Loophole total of over 30 million US dollars in 2020. Therefore, more and more clubs seem to be interested in Chiliz at the moment and publish fan tokens on the platform.
What is Chiliz?
Chiliz is a blockchain platform developed by Socios. According to Socios‘ official website, fans of popular sports clubs can influence their teams with so-called fan tokens released on the Chiliz blockchain.
Receive fan tokens, participate in exclusive club votes and win unique rewards.
This allows tokenised fans to vote on, for example, jersey design, training pitch naming, stadium entertainment or the next charity initiative.
50 million US dollars for US expansion
On 2 March, Chiliz also announced that it had invested $50 million for a large-scale expansion into the United States. The venture aims to offer various sports companies the opportunity of a new digital revenue stream.
According to Reuters, the project primarily wants to enter into partnerships with leading sports teams from the USA in order to bring fan tokens to the market. This process is therefore called Fan Token Offering (FTO) in marketing jargon and has been very lucrative for football clubs in the past. The FTO of the BAR fan token from FC Barcelona alone brought the football club over 1.2 million euros within just two hours.