I even started to wonder whether it has the potential to go “to the moon” like Dogecoin (CCC:DOGE-USD) did. After all, there are similarities between the two tokens.
Chiliz and Dogecoin are both cheap coins, and they’ve both experienced sharp increases in trading volumes in 2021. With that in mind, I had to investigate further.
What I uncovered is an altcoin with moon-shot potential, yes, but also a connection to a particular class of digital assets that has captured the market’s imagination – and rewarded some traders quite handsomely.
A Closer Look at the CHZ-USD Price
As Medithi observed, CHZ-USD rocketed from around two cents on Feb. 8 to approximately 29 cents on March 9.
That was already a massive run-up, but things just got more hectic from there. If you can believe it, Chiliz hit a 52-week high of roughly 83 cents on April 16.
We’re talking about a 40x move in two and a half months, so it’s understandable if buyers needed to take a breather.
And so they did, as CHZ-USD declined during the back half of April and continued to fall in early May.
As of May 24, Chiliz was trading at around 25 cents. Therefore, it may be possible to take a long position in anticipation of the next rally – not necessarily another 40x move, but I suppose anything’s possible in the world of crypto.
What Is Chiliz, Anyway?
Don’t get me wrong – I don’t want anyone to invest in a cryptocurrency just based on the price action.
As the old saying goes, “Know what you own.” Hence, it’s crucial to learn as much as you can about Chiliz before taking a position in it.
Unlike Dogecoin, Chiliz didn’t start out as a joke. Actually, it’s been the basis of a serious business from the outset.
Chiliz is a Malta-based company which has partnerships with major European soccer teams as well as the mixed martial arts organizations UFC and Professional Fighters League.
The cryptocurrency Chiliz fits into this business model nicely as it’s a token that targets sports fans.
CEO Alexandre Dreyfus has ambitious plans for the company. With “upcoming new partners and growth of our ecosystem this summer,” Chiliz reportedly anticipates a five-fold increase in its fan tokens on its platform, Socios.com, this year.
Chiliz also has a connection to non-fungible tokens or NFT’s, which are a red-hot commodity this year.
Could It Be the Next Dogecoin?
However, Dreyfus wanted to emphasize that the Chiliz tokens are not NFTs.
So, here’s how Chiliz coins might be considered similar to NFTs.
Through Socios.com, sports teams can sell fans special perks. Examples of these perks might include getting early access to tickets or voting on team jersey designs.
And, as Medithi explains, “Those perks are sold as ‘fan tokens’ on the blockchain, similar to recent smart contract NFT sales by Kings of Leon and others.”
So, we’re not exactly dealing with NFT’s here, but something similar. For all we know, Chiliz tokens could evolve into a sports-centric next generation of NFT-like assets.
And if that happens, then the Chiliz coin could be the “next Dogecoin” – or at least, it could move as quickly to the upside as Dogecoin did.
Chiliz: The Bottom Line
Everything is speculative in the world of low-priced altcoins. This point cannot be emphasized strongly enough.
CHZ-USD has already had a sharp rally, but then retraced much of that move.
As a result, you might get a second chance to accumulate Chiliz tokens at a reduced price. And with that, you can take a still-early position in something very similar to the NFT craze.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
David Moadel has provided compelling content – and crossed the occasional line – on behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.