Yesterday, Siyi Chen, Community Lead and Crypto Marketing Specialist from Chiliz joined the Telegram channel for an AMA about Chiliz, the Socios.com Platform, and the $CHZ Token.
Chiliz is a Fintech company focused on providing innovative blockchain-based solutions for sports and entertainment organizations to engage with their fans via their platform, Socicios.com. On Socios.com, organizations can issue unique Fan Tokens, enabling fans to acquire voting power in key decisions in their favourite sports and entertainment organizations.
With great excitement pouring in from around the world, Chiliz recently announced that the platform will soon be launching in the American market.
Here is a selection of questions answered during the AMA.
Question: Why did Chiliz decide to tokenize sports and Esports teams?
Answer by Siyi: So actually the founding team of our company comes from online poker business background, and they were running an esports-ish league of poker, called Global Poker League (gpl.com).
Though we had a decent amount of viewers and followers, fan engagement & monetization were actually missing. So we started to look at how we could improve that. And the more we were making progress in our thoughts, the more we realised that instead of doing that for ourselves, we should do it for others. So we started to engage with Esports teams and football clubs, and it became evident that clubs were looking to get closer to their fan base.
It is true that most sports organisations can connect with their fans via social media, they use Facebook, Twitter but have nothing really connecting them to their fans. So we decided to build a digital asset — fan tokens upon blockchain, that would really give a voice/power to their global audience and create engagement.
Fan Tokens are a kind of digital assets that represent your ownership of a voting right of your favourite clubs and give you access to earn unique club-specific rewards and experiences. That’s the foundation of our product, and from that, we offer more and more features around it.
Question: What’s the exchange’s viewpoint on the recent crypto bull run? And how is it making way to provide users with the best experience during this period?
Answer by Naomi: The most recent bull run is different from previous bull runs in that we’ve got more institutional interest. I mean surely, companies like Tesla or Square buying Bitcoin has helped, but even JP Morgan now says that investors should consider Bitcoin in a diversified portfolio to hedge their bets and they’re just one of many more traditional investment banks to say this.
It does help as well, that the Fed continues money printing and inflation seems more likely than not.🖨️
As the exchange, we’re just making sure that traders can trade their portfolios at any time by guaranteeing high up-time and liquidity. We’re also working on continuously bringing new exciting assets like Chiliz to our exchange to offer our traders a variety of choices. We also got margin trading so the more risk-loving traders can make bigger bets. We are continuously adding to that, so watch this space.
Question: How did you manage to convince so many sports & Esports teams to partner with you?
Answer by Siyi: The main reason why our partners are willing to work with us would be — what we are doing can actually help them solve the issues that they are facing. As we always say, 99% of the audience are not in the sports stadium. Now because of the pandemic, unfortunately, all the fans have to stay away from their favourite clubs. So the clubs lack efficient methods to connect their fans.
Because of the Covid, clubs started to struggle even more with revenue and didn’t really know how to engage their fans in a meaningful way outside of the stadium, which has been our mission since the beginning.
Also because we have managed to reached official partnerships with over 20 major sports organizations in the world, including some of the biggest names, for example, Barcelona, Juventus, Paris Saint-Germain, AC Milan, leading Esports organizations OG, Team Heretics, NAVI and Alliance, and MMA organisations UFC and PFL, we have built a strong network effect which will attract more and more brands to join.
Question: If I buy a Fan Token, for instance, a PSG token (Paris Saint-Germain), what benefits will I get?
Answer by Siyi:Owning a PSG Fan Token gives you the right to vote in any PSG polls that run on Socios.com — — the world’s first blockchain-based fan engagement & reward platform. Also, users can enjoy many other club-specific exclusive benefits and rewards, for example, VIP tickets, signed merch, exclusive digital or on-site experience and etc.
Also, we are constantly looking to expand the utility of our Fan Tokens. We recently launched a Chat Room feature that allows Fan Token holders to talk to each other, currently, it’s in an ‘early phase’ as we plan to add more features. We expect to see more and more fans making use of these chat rooms during match days and important key club events!
Also, we are running quiz & competitions on our platform regularly, PSG holders can participate and have the chance to win exclusive merch. Additionally, we are working on in-app gamification which will allow users to gain XP for performing certain tasks, gaining achievements in the form of badges. Our CEO Alex Dreyfus recently shared some spoilers about this on Twitter! You can have a preview here –
Also, we have upgraded the Fan Token economics and introduced the burning mechanism, so based on the team’s excellent performance, the total supply of their Fan Token will decrease and become more scarce.
So basically the better performance the team has fewer Fan Tokens. More fans, less Fan Tokens.
Question: What is the future trend of DeFi, in your opinion? What is the biggest flaw DeFi is facing today? And is #Chiliz looking to solve the problem?
Answer by Naomi: Not sure if this one is for me but I’d definitely say that DeFi continues being quite difficult to use for people that are not really that deep into tech. To add to that, what I’ve seen and experienced from Chiliz so far, they’ve really done a great job in making a platform that’s user-friendly even for people that might not have much idea of crypto 🙂
Question: You partnered with Enjin to incorporate #NFT into your project, when and how do you intend to implement this?
Answer by Siyi: I knew someone would ask the question about NFT :)) Yes we partnered with Enjin last year, and we are planning to launch the NFT for our partners. So the NFT we are designing would be related to the spontaneous events, for example, when Christiano did a hat-trick, the oracle would capture that moment and send it to the blockchain, and an NFT of that precious moment can be produced automatically.
Question: Do you have a plan to BURN, Buyback or Locked $CHZ Tokens to increase its value???
Answer by Siyi: Yep we do have a burning mechanism of CHZ. Last year we introduced token economics 2.0, which is
- 20% of the Net Trading Fees of Chiliz.net Exchange collected in $CHZ will be burnt
- 10% of the Net Proceed of the Fan Token Offering (FTOs) from Chiliz.net platform collected in $CHZ will be burnt + 3 months lock on collected $CHZ
- 20% of the Net Proceed of NFT & Collectibles issued by $CHZ will be burnt.
So far we have burned near 47 million CHZ.
Question: DeFi and Dapps are two pillars primed to rule cryptocurrencies, what’s your strategy to DeFi and Dapps?
Answer by Naomi: For us, as an exchange, it really comes down to providing the infrastructure for traders to trade all their DeFi tokens. Who knows, maybe one day we build our own dApp, but for now, we’re just making sure to be giving DeFi projects a stage. We actually do have a DeFi Hub as well which we hope to grow in the future!
Question: What about the process of incorporating a new football team into the Chiliz ecosystem? How do you explain Chiliz’s composition for sports teams that don’t understand blockchain technology? Is the Chiliz platform focused only on football or other sports?
Answer by Siyi:Currently we are in talks with more than 50+ clubs in the world, not only football but across various sports categories, including basketball, crickets, baseball and etc. Yes, it’s quite normal that the traditional sports industry still has some questions about blockchain technology, however, they all know they need to build a strong connection with their fanbase and diversify their revenues. What we are doing can help them solve both issues :))
Question: Could you give me 2 or 3 key points to convince me and other angel investors invest in CHZ in the long-term?
Answer by Naomi & Siyi: This is probably a question where Siyi can add some more, but I’d definitely say the fact that the platform is “sports-agnostic”. What I mean by that is, really any organization can use it. And I’ve seen some e-sports teams already joined Socios.com and the Chiliz ecosystem. It’s definitely a growing sector and e-sports has for sure gotten a push now that everyone was “forced” to stay home. Definitely a lot of growth potential. Which is what long-term investors would care about 😉
Yep, Naomi answered very well and I just need to add a few points.
We noticed the lack of engagement & monetisation from our previous venture and realised that the whole sports industry is facing the same issue immediately, that’s how we started our business and why would PSG and Juventus want to work with us in the very beginning. And thanks to’ the pandemic situation, more and more clubs realised that they need to diversify their revenue urgently, as they are suffering the loss of millions from the absence of ticket income.
More and more players in the industry start to recognise the potential of the monetisation of their fanbase, while this industry is still at blue sea stage.
Question: I was wondering how NFT’s could be used in the drones space? FPV quadcopters etc
Answer by Naomi:I must admit that I haven’t given it much thought yet, however, if you think about the videos that might be taken by these drones.
Potentially, there could be a use-case for turning those into NFTs
Such Videos could be bought and sold for the creation of ads, movies…
Question: Socios Powered by Chiliz Offers a lot of rewards and Exclusive Experiences such as VIP invite to a meet and greet With sports heroes, exclusive dugout access on match days, Receive signed official jerseys etc. Who sponsors all this is it Socios or The Clubs and are there real examples you can share with us of people who have benefitted from these exclusive offers.
Answer by Siyi: The rewards are provided by the clubs, which is one of the requirements included in our contract :)) This is a give-away campaign we are currently doing with a Juventus player signed jersey as the gift. We have many more similar campaign going on from time to time.
We also have VIP boxes at most partners’ stadiums (like the second photo in the above tweet), which is part of the VIP experience we & the club offer to the fans.
Congratulations to the winners of the 5 best questions! We will reach out to send you your prizes!🏆