Chiliz, a European-focused blockchain sports platform, has plans to invest $50 million in its expansion to the United States.
Chiliz (CHZ) is known for issuing tokens to football fans, allowing them greater engagement with their favorite clubs. The CEO of the Malta-based blockchain company, Alexandre Dreyfus, revealed that the platform has big plans for the United States.
The blockchain company is rapidly expanding its roster of notable European football clubs, with AC Milan launching their fan token in late January. The token launch earned $6 million in its first day. AC Milan has joined Juventus, Barcelona, Paris St Germain (PSG), and Legia Warsaw in launching their tokens on Socios.com, the company’s fan engagement platform.
Chiliz To Expand Into the United States
Chiliz is looking forward to expanding into the United States. Dreyfus says, “A huge focal point for us in our global growth plans is the U.S.. That’s why we’re opening a New York office and investing $50 million into the country’s sports industry in order to launch Fan Tokens with leading franchises from the five major U.S. sports leagues.”
“We head to the U.S. with a proven track record in generating millions of dollars of revenue for some of Europe’s biggest sporting organizations. In 2020, we shared more than $30 million with our partners, but this year we’re targeting a minimum of $60 million,” he added.
According to Dreyfus, Chiliz is really working towards a massive expansion and has initiated talks with Formula One and eSports teams.
Besides, Chiliz currently runs a market information tracker and fan token price platform known as FanMarketCap. This platform has just under $200 million in value. Dreyfus believes that the value will grow once new soccer clubs join the platform.
Football Clubs To Boost Revenue With Chiliz
Most football clubs have been hit financially as a result of the COVID-19 restrictions. According to Joseph Edwards, head of research at cryptocurrency brokerage Enigma Securities, joining Chiliz can be a great avenue for these clubs to boost their revenue. With the rise of crypto markets, football clubs can gain from their integration with Chiliz.
Edwards notes, “Fan tokens right now are just hitting the perfect itch at the perfect time – fans are disconnected physically from their fandom, and this helps bridge that gap.”
He adds, “It should be said that Socios have usually been very clever with these launches – I can’t think of any that were headline failures, even in the overall crypto bear market – but there’s a reason that they’ve been stepping them up as of late. It just hits right in the current moment that sports entertainment finds itself in.”
Giorgio Ricci, Chief Revenue Officer at Italian champions Juventus, says that the popularity of fan tokens represent a tangible connection between the clubs and their fans. He says, “(It) is not just a short-term fix to the problems brought on by the pandemic. It’s a solution to the longer-term issue of how to engage with the 99% of fans that aren’t able to watch games from the stadium or ever set foot in Turin. In normal circumstances our stadium holds 41,000 people, but recent estimates suggest our global fanbase is around 400 million, many of whom are thousands of miles away.”
Before now, Trabzonspor partnered with Chiliz to launch their fan token. Trabzonspor released their Fan Token ($TRA) on the Socios.com app and the Chiliz Exchange.
As of the time of publication, Chiliz price was $0.102515, with a 24-hour trading volume of $965,043,186. CHZ price also went up 26.8% over the last 24 hours. Besides, it has a circulating supply of 5.3 billion CHZ coins and a max supply of 8.89 billion. Binance is also the current most active market trading CHZ.
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