Why Chillz Cryptocurrency Keeps Soaring Today

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Why Chillz Cryptocurrency Keeps Soaring Today

What happened

One of the most distinctive crypto projects today is Chillz (ZCH 5.97%). This single cryptocurrency backs a blockchain-based sports entertainment platform, Socios, which gives investors a say in the governance of their favorite sports brands. It turns out that Team Chillz and Socios broke off their partnership, which led to an impressive rally this month. Today, Chillz was up another 2.8% at 12:15 p.m. ET. However, over the past month, this token has surged 65.5%, outpacing most major cryptos during this time.

On August 1, when Chillz really started to gain momentum, Chillz announced a massive $102 million stake in FC Barcelona’s Barca studios. This deal accounts for about a quarter of that business, allowing Chillz to grow its presence in the sports-related NFT and metaverse worlds.

Today, crypto exchange ByBit announced that Chillz will power a Fan Token Kickoff for the platform. This contest is scheduled to run from August 19 to September 2 and give users chances to win 200,000 Attached (USDT -0.10%) stablecoins in prices.

So what

Given the still nascent nature of the crypto space, partnerships play an important role for investors in assessing the growth prospects of a given project. With the Chillz team clearly in business development mode, this sports-related blockchain platform provider is certainly seeing a surge in interest.

Now, other projects that have made significant investments in sports-related advertising deals haven’t seen the kind of return on investment that investors might expect. As a result, time will tell how successful this investment will ultimately be.

That said, for those who are optimistic about the future of crypto in the sports and entertainment sector, Chillz is a project worth considering.

Now what

The whole concept of using cryptocurrency as a tool for governance or fan voting is certainly intriguing. Considering the high-profile partnership Chillz has been able to forge so far, there might be a lot to like.

That said, this project is one that appears to be highly specialized and subject to the risks of increased competition and low barriers to entry into this space. Chillz’s continued growth over time will depend on its success with its existing partnerships. So right now this token is one that I would consider a speculative bet, even with these key partnerships underway.

Chris MacDonald has no position in the stocks mentioned. The Motley Fool has no position in the stocks mentioned. The Motley Fool has a disclosure policy.

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