- Chiliz price has been in a downward trend recently.
- Fan token prices and volume have declined sharply.
Chiliz price has struggled in the past few months as investors remain concerned about the fan token industry and its future. The CHZ price is trading at $0.2255, where it has been in the past few days. The price has dropped by about 32% from the highest point in March, bringing its total market cap to about $1.2 billion.
Fan Token Offerings disappoint
Chiliz is a leading blockchain project that is well-known for its fan token offerings (FTO) projects. It has partnered with some of the leading sports teams to help them launch their fan tokens. Further, the company owns Socios, a platform that lets people trade these tokens.
Chiliz price has struggled in the past few weeks as investors worry about the state of fan tokens. For example, the price of most tokens has crashed hard in the past few months, bringing their total market cap to about $450 million.
Manchester City’s token is the largest one in the industry with a market cap of about $56 million. It is followed by Paris Saint-Germain, which has a market cap of about $47.8 million. Other leading FTOs are FC Porto, Alpine F1 Team, and Barcelona.
According to Bloomberg, fan tokens have failed because they don’t provide holders with a lot of benefits. For one, clubs remain fully centralized, meaning that teams make their own decisions. Fan token holders are left with no meaningful value.
For example, the Juventus token allows fans to use it to obtain VIP tickets. The PSG token, on the other hand, let holders vote for the design of the club’s tour bus and club slogan. All these features offer no real value to holders.
Meanwhile, fan tokens trading volume has been in a steady downward trend. For example, the ten biggest fan tokens have a daily volume of $13 million, which is a substantially low amount.
Chiliz price prediction
The daily chart shows that the Chiliz price has been under pressure in the past few days. The coin is trading at $0.2256, which is lower than this month’s high of $0.334. It has formed what looks like a bearish flag pattern, which is usually a bearish sign. Also, the coin is still slightly below the 25-day and 50-day moving averages.
Therefore, there is a likelihood that the CHZ price will have a bearish breakout as bears target the next key support level at $0.1592. Here’s how you can buy cryptocurrency in the UK.
