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CHZ soars 30% as the sports and entertainment-focused Web 3 firm Chiliz announces successfully validating the genesis block of its EVM-compatible Layer-1 blockchain.
Chiliz will use the new blockchain to create seamless Web 3 experiences for fans, including metaverse engagement, Web 3 ticketing, play-2-earn games, and NFTs.
Chiliz to Trial Team Fan Tokens and NFT Ticketing
A fork of the Binance Smart Chain, Chiliz Chain 2.0 will also trial NFT ticketing and athlete-based fan tokens instead of team-based fan tokens. The new chain champions shorter block times, reduced transaction fees, and low electricity consumption.
Additionally, CHZ holders can earn rewards by staking on the network, which is currently made up of 11 validators. Node operators will vote on governance changes presently limited to the Chiliz team. Developers can issue sports and entertainment-related tokens conforming with the flexible Chiliz Advancement Proposal (CAP-20) token standard.
After Chiliz announced the successful validation of the genesis block of its new Chiliz Chain 2.0, CHZ rose 30%.
Football Clubs Employ Metaverse Strategy to Drive Deeper Fan Engagement
Football clubs are reinventing fan experiences, eschewing tokens popularized by Socios in favor of a more well-rounded Web 3 strategy.
Last year, Portuguese footballing giant FC Porto announced a metaverse to allow fans to earn NFTs through gaming. Players can then sell their non-fungible tokens in virtual shops in a Porto metaverse created by Upland. Upland specializes in digitally mapping the real world.
“With Upland, we are taking fans beyond transaction-centric NFT marketplaces into an activity-driven metaverse experience that engages them with the team and football players they love,” said Upland’s co-CEO Dirk Lueth.
Virtual world expert Sony recently partnered with Manchester City FC to offer fans a unique digital experience in a new metaverse. In its most recent proof-of-concept, Sony demonstrated how avatars could interact with real-life gameplay in a virtual City stadium.
Socios Fan Tokens Criticized in Mainstream Media
Chiliz could launch its new Web 3-focused initiative after investigations revealed the not-so-glamorous side of club fan tokens.
Through its Socios app, Chiliz has issued fan tokens to supporters of notable football teams. These include FC Barcelona, Atlético Madrid, Manchester City FC, and Arsenal FC. The tokens were initially marketed as digital assets affording fans unique experiences and voting rights in certain club decisions.
However, in Aug 2021, sports publication The Athletic confirmed from an FC Barcelona source that token holders could only vote on public relations and digital content matters. “In no case (will) token holders will be consulted about the running of the sporting side of the club or business decisions,” the source said. In other words, fan token votes cannot swing business decisions one way or another.
Additionally, according to The Athletic, fans can only purchase club tokens using CHZ, which trades on Binance, Huobi, and Coinbase, amongst others, and exposes financially vulnerable fans to additional volatility unrelated to the football club they supported.
Unsuspecting fans could also become victims of market manipulation. A case in point is when French club Paris Saint-Germain announced it would pay Lionel Messi a signing bonus in the club’s PSG token. Before the announcement token surged briefly before collapsing later, making early buyers rich and causing latecomers to lose big.
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