Shark Tank star Mark Cuban recently aired his thoughts on Ethereum’s upcoming “Merge” upgrade. He pointed out how Ethereum’s utility as a smart contract platform and as a deflationary asset are at odds. In an interview with Altcoin Daily on Sunday, Cuban explained that there is an inverse relationship between deflation and utilization of Ethereum. “If utilization goes up, and the value of a token goes up, then the cost to do something goes up,” he explained. “So you have…
Blockchain sports platform Chiliz has revealed that it will invest $50 million as part of its expansion plans to the United States. This development represents a significant step for Chiliz as it looks to maintain its growing dominance in the sports-based NFT market.
Chiliz revealed this latest development today in a press release on Us news outlet, Reuters. The blockchain firm will also be opening an office in New York to expand in the U.S. Chiliz also stated that it had kept aside a $50 million fund towards investing in the country’s sports industry. Also, it plans to launch fan tokens with top franchises from the five major U.S sports leagues.
Speaking on the development, Alexandre Dreyfus, the CEO of Chiliz, believes it is a significant move. “We head to the U.S. with a proven track record in generating millions of dollars of revenue for some of Europe’s biggest sporting organizations. In 2020, we shared more than $30 million with our partners, but this year we’re targeting a minimum of $60 million,” he said.
This was echoed by Joseph Edwards, head of research at cryptocurrency brokerage firm Enigma Securities. According to Edwards, fan tokens are hitting the peak at the right time, with fans unable to attend games. “Fan tokens right now are also just hitting the perfect pitch at the perfect time. Fans are disconnected physically from their fandom, and this helps bridge that gap,” he said.
Chiliz currently partners with top European clubs
The Malta-based company is one of the leading sport NFTs platforms in the cryptocurrency industry. It offers tokens to sporting fans to partake in different activities, including governance and decision-making within the clubs. These fan tokens are then listed on Binance and made available for fans to speculate.
The tokens offer a digital revenue source for sports organizations when global sporting revenue has dwindled due to the Covid-19 pandemic. Chiliz currently partners with several football clubs in Europe. This includes French giants PSG and Spanish giants Barcelona.
The blockchain firm recently launched fans token with Italian football club AC Milan as part of its expansion plans. This latest development is crucial as the U.S sporting market is the biggest globally and offers massive potentials for Chiliz.