By George Ward
The cryptocurrency and digital asset ecosystem is rapidly evolving and innovating, with unique projects and initiatives being developed with an eye on the future. One such project is the Fan Token Project Chiliz, which recently set up a $50M incubator backed by Jump Crypto.
The project aims to finance an early-stage Web3 project in the entertainment and sports sectors that will convene on layer-1 blockchain. The Chiliz Labs initiative aims to promote the adoption of blockchain technology in the entertainment and sports industry.
The initiative will provide a platform for creating innovative projects and entertainment products and services. By investing in these projects, Chiliz Labs hopes to facilitate the industry’s growth as a whole and promote the development of innovative technologies and services.
Revolutionizing The Sports And Entertainment Industries
According to the official statement, the program will focus on early-stage projects in the sports and entertainment industries, particularly on Web3 projects built on Chiliz’s blockchain. Chiliz anticipates unveiling between eight and ten such projects soon.
Chiliz, the creator of the incubator, has its flagship platform Socios.com that trades coins related to leading sports teams such as Juventus, Manchester City, and FC Barcelona. It aims to heighten rivalry with digital trading card company Sorare, which has agreements with the top five European football leagues.
Sorare obtained over $600 million worth of funding in 2020, 10 times more than Chiliz, who raised around $66 million.
Unlocking Unique Experiences with Fan and Non-Exchangeable Tokens
The issuance of fan tokens, such as those available on Socios, allows fans to buy tokens for exclusive experiences and decision-making power over their favorite clubs’ operations. Additionally, projects that utilize NFTs as tickets could be interesting.
On-chain data indicates that the overall market capitalization of fan tokens is more than $300 million, and their 24-hour trading volume is over $40 million. Kanav Kariya, president of Jump Crypto, commented that Chiliz had devised an exclusive answer to one of the most pressing challenges that teams and leagues face.
That challenge is increasing their brands and optimizing support from fans worldwide sustainably and cost-effectively. Despite the controversy surrounding tokens that allegedly attempt to take advantage of fans by making them think they own a part of their favorite teams, Alexandre Dreyfus, Founder and CEO of Chiliz, argues otherwise.
He claims fans are highly interested in programs that reward their devotion, similar to airline loyalty programs. By facilitating the growth of Web3 projects in the entertainment and sports industry, Chiliz Labs aims to provide a platform for the successful development of innovative products and services.
With its incubator and the support of Jump Crypto, Chiliz is taking a significant step forward in its mission to drive the adoption of blockchain technology in the entertainment and sports industry.