CHZ surged 30% as sports and entertainment-focused Web3 company Chiliz announced that it had successfully verified the genesis block of its EVM-compatible layer 1 blockchain.

Chiliz will use a new blockchain to create seamless Web 3 experiences for fans, including Metaverse Engagements, Web 3 Tickets, Play 2 Earn Games, NFTs and more.

Chiliz Trials Team Fan Tokens and NFT Tickets

Fork of Binance Smart Chain, Chili’s Chain 2.0 We will also be experimenting with NFT tickets and athlete-based Fan Tokens instead of team-based Fan Tokens. The new chain will advocate faster block times, lower transaction fees, and lower power consumption.

Additionally, CHZ holders can earn rewards by staking on the network, which currently consists of 11 validators. Node operators vote on governance changes currently limited to the Chiliz team. Developers can issue sports and entertainment-related tokens that comply with the flexible Chiliz Advancement Proposal (CAP-20) token standard.

CHZ surged 30% after Chiliz announced it had successfully verified the genesis block of its new Chiliz Chain 2.0.

Football clubs are reinventing the fan experience, eschewing the tokens popularized by Socios in favor of a more inclusive Web 3 strategy.

Last year, Portuguese football giants FC Porto launched a Metaverse where fans could earn NFTs through games. Players can then sell their non-fungible tokens in a virtual shop in the Porto metaverse created by Upland. Upland specializes in digital mapping of the real world.

“Upland takes fans beyond transaction-centric NFT marketplaces into an activity-driven metaverse experience where fans engage with the teams and footballers they love.” Said Upland co-CEO Dirk Lueth said:

Virtual worlds expert Sony recently partnered with Manchester City FC to give fans a unique digital experience in the new metaverse. In its latest proof of concept, Sony has demonstrated how avatars can interact with real-life gameplay in a virtual city stadium.

Socios Fan Token Criticized in Mainstream Media

Chiliz may launch a new initiative focused on Web 3 after an investigation reveals unattractive aspects of Club Fan Tokens.

Chiliz issued Fan Tokens to supporters of prominent football teams through the Socios app. These include FC Barcelona, ​​Atletico Madrid, Manchester City FC and Arsenal FC. Tokens were initially sold as a digital asset that offers fans a unique experience and the right to vote in certain club decisions.

However, in August 2021, sports magazine The Athletic Confirmed A FC Barcelona source said that token holders can only vote on public relations and digital content issues. “In no event will token holders be consulted regarding the club’s sporting operations or business decisions,” said the source. In other words, Fan Token voting cannot influence business decisions.

Additionally, according to The Athletic, fans can only purchase Club Tokens using CHZ. CHZ trades on Binance, Huobi, Coinbase and more, exposing financially vulnerable fans to additional volatility unrelated to the football clubs they support.

Even unsuspecting fans can fall victim to market manipulation. A case in point is when French club Paris Saint-Germain announced that it would pay Lionel Messi a signing bonus with his PSG token at the club. Prior to the announcement, the token briefly surged before collapsing later, making early buyers rich and latecomers heavy losses.

Forbee[In]Click here for Crypto’s latest Bitcoin (BTC) analysis.