Among the 100 most valuable cryptocurrencies by market cap, CHZ’s 20% seven-day increase ranks third.
As major digital assets trade listlessly, a cryptocurrency that represents the convergence of blockchain and sports has just arisen, igniting interest in crypto markets.
With a 25% increase in only seven days, CHZ, the native token of the Chiliz blockchain (CHZ), has reached a two-month high of more than 15 cents. Socios.com is the biggest platform for creating tokens for sports fans. Coingecko reports that prices peaked at 16 cents early today, the highest level in three weeks.
Among the top 100 cryptocurrencies by market value, which include ether and bitcoin, the double-digit price spike ranks third.
The next UEFA Euro, which will take place from June 14th to July 14th and will include 24 member states, has reportedly boosted CHZ’s values. You can buy most fan tokens on Socios.com using CHZ. As a result, the cryptocurrency stands for the level of engagement between sports fans and their beloved teams.
The 2022 FIFA World Cup was the catalyst for a much larger uprising. During the summer of 2022, the token’s value increased by a factor of two, reaching roughly 30 cents. It peaked a day before to the start of the worldwide athletic event on November 20, 2022. In December of that year, prices fell by around 40%.
By mid-June, 10X Research anticipates that CHZ will have made additional increases, similar to what happened during FIFA, and then there may be a sell-off.
From the summer of 2022 to the commencement of the FIFA World Cup on November 20, 2022 (till December 18, 2022), the Chiliz (CHZ) token saw a rally of more than 100%. Unfortunately, it dropped by 60% the day before the 2022 FIFA Soccer World Cup began (on November 19, 2022). In a message to customers, 10X founder Markus Thielen stated.
“This situation might happen again. Thielen said that the UEFA European Football Championship, which is a little smaller than the 2022 World Cup, will take place from June 14, 2024, to July 14, 2024. Twenty-four different nations’ teams will be playing, and the firm often advertises its token during similar events.
According to a study published in Research in International Business and Finance, “Anticipatory Gains and Event-Driven Losses in Blockchain-Based Fan Tokens: Evidence from the FIFA World Cup,” sports tokens are prone to “buy the rumor, sell the news” tendencies, which involve a period of optimism and price rallies before the event and subsequent price declines.
It is well-known that European economies and consumer spending get a boost during football tournaments. One study from 2019 indicated a statistically significant correlation between the market worth of European regional football teams and the economic success of certain areas.
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