Recently, while major digital assets trade listlessly, a cryptocurrency that represents the junction of blockchain and sports has emerged as a source of enthusiasm for the crypto markets. The greatest sports fan token creation platform, Socios.com, is powered by CHZ, the native token of the Chiliz blockchain. In just seven days, CHZ has increased 25% and reached a two-month high of over 15 cents.
Early today, prices reached a three-week high of 16 cents, per data source Coingecko. In terms of market value, the double-digit price increase ranks third among the top 100 cryptocurrencies, which includes ether and bitcoin. (Notcoin and dogwifwhat are best performers).
CHZ’s valuations appear to have increased due to excitement surrounding the impending 24-country Union of European Football Associations (UEFA) Euro, which is scheduled to take place from June 14 to July 14. Most fan tokens are purchased on Socios.com utilizing CHZ.
Thus, the level of engagement between sports fans and their preferred teams is represented by the cryptocurrency. A considerably larger rally took place in the run-up to the FIFA World Cup in 2022. During the summer of 2022, the token’s value doubled to about 30 cents, reaching its peak one day prior to the commencement of the world athletic event on November 20, 2022. December of that year saw an almost 40% decline in prices.
10X Research believes that the FIFA situation will recur, guaranteeing CHZ further gains by mid-June and possibly a sell-off thereafter. “From the summer of 2022 until the day before the FIFA World Cup began on November 20, 2022 (which lasted until December 18, 2022).
The Chiliz (CHZ) token rallied over 100%.” only to see a subsequent 60% fall one day prior to the FIFA Soccer World Cup (beginning on November 19, 2022). 10X founder Markus Thielen stated in a letter to clients
“This situation could come up again. The UEFA European Football Championship, which is a scaled-down replica of the 2022 World Cup, is scheduled to take place from June 14 to July 14, 2024, and teams from 24 countries will be competing, as mentioned by Thielen. The corporation typically promotes its token during similar occasions.
According to a recent study titled “Anticipatory Gains and Event-Driven Losses in Blockchain-Based Fan Tokens: Evidence from the FIFA World Cup,” published in Research in International Business and Finance, sports tokens are generally susceptible to “buy the rumour, sell the news” tendencies, representing a pre-event period of optimism and price rallies and subsequent price declines.
European consumption and economic activity have been shown to increase during football matches. Research published in 2019 discovered a meaningful statistical relationship between the market worth of European regional football teams and the economic performance of certain regions.
The availability of fan tokens and blockchains like Chiliz has made it easier to price in and measure sporting events’ financial and economic impact.