author: Matteo (telegram @mttsb97)
Given the great interest in CHZ and its ecosystem in the last period, thanks to the support of one of our community members, who has written a very exhaustive, you will be able to understand and make the most of the hype around these projects.
CHZ is a coin that was born in February 2018; since the beginning the aim of the project has been to create a system to make the fans interact with the world of sport, which allow you to have a certain degree of influence on some of the team’s choices (choosing the new uniforms for the following season, the new graphics of the coach or of the locker room, the songs to be broadcast during the interval, events in which the players should participate, the possibility of setting up your preferred line-up for friendly matches and why not, perhaps in the future to take partin the ballots between players in official matches…).
Today CHZ has 106 partners, of which:
- 49 soccer clubs,
- 26 NBA teams,
- 14 NFL,
- 6 esports teams,
- 4 cricket teams,
- 2 F1 teams,
- 2 MMA wrestling,
- 1 NASCAR team,
- 1 tennis,
- 1 football team.
The whole CHZ world is accessible via its proprietary APP, downloadable for both Android and iOS. Its name is SOCIOS (socios.com) and on this platform you can participate in polls, predictions and prizes of the relevant teams.
In order to do this, however, you must have a certain amount of the FAN TOKEN of the team you are interested in.
If I want to vote in the AC Milan polls, try to win tickets or gadgets I must have at least 1 FAN TOKEN $ACM.
By answering the poll or the prediction, I block the corresponding FAN TOKEN until the end of the poll or prediction.
The number of blocked FAN TOKEN is shown above the survey:
- when you see “Capped at 1 TOKEN”, only one FANTOKEN will be blocked out of all those in your wallet
- if you see “Capped at 200 TOKEN” is present, a maximum of 200 FANTOKEN will be blocked in your wallet
FAN TOKENS on SOCIOS are purchased using CHZ. you can even purchase them from other platforms, such as Binance or Ftx, and then transfer the tokens to to SOCIOS.
Within SOCIOS you also have the opportunity to earn SSUs, a token native to the platform that has no value but will be used to redeem rewards (by holding SSUs + XXX number of FAN TOKEN you can redeem these rewards. You will only be credited for SSUs while TOKEN fans remain your property).
In the picture you can find an example of the rewards currently available when in possession of SSU+ FAN TOKEN. You can find these rewards in the fan rewards section (at the moment classic and vip tickets are only available, later on merchandising, team experiences and much more will follow).
How to earn SSU
- Through hunting: you will find SSUs near your geographical location, e.g. in certain places of your city, wherever you are, along the same line as another AR app i.e. Pokemon GO. Hunting takes place every 12 hours from the last moment you claimed SSUs. If done every day, every 12 hours, you can get a minimum of 10 SSU daily. The maximum is not defined, since the maximum reward is not defined since sometimes you find 5 SSU per hunt, sometimes 10 or 15, …
NOTE: due to the travel prevention measures decided during Covid-19 outbreak, SOCIOS has made it possible to find and capture SSUs near your location: you don’t have to go around the city, but you only need to be within range of the chest to be able to open it and find SSUs.
If the hunting system does not find any chests in your location, you will have to clear the cache on the app in the app management section of your phone.
- By leveling up and thus gaining XP, you have to achieve certain goals (represented by badges), which you can find in your profile section.
In the “REWARDS” section you can see the leaderboards for the various FAN TOKEN.
In order to earn points for the ranking, you can perform:
- FAN TOKEN purchases
- FAN TOKEN transfers
- Participate in games and quizzes – coming soon
- Ransoms from fan rewards – coming soon
- Earn digital collectibles – coming soon
You can participate in more than one ranking, you only need to own a team’s FAN TOKEN to be able to participate. Separate rankings have been created for each team, starting with European football teams. Each team ranking will last until the end of the team’s sporting season.
At the start of each new season, the rankings will be reset and the battle for first place begins again. You can find below the prizes:
NFT / NFT 2.0
- In the “Fan rewards” section, within the DIGITAL COLLECTIBLES window, with the usual SSU+FAN TOKEN formula. NFTs are given out at a certain time, they are not always available in the rewards section. The day on which the NFTs are handed out is announced by SOCIOS through its social platforms (Telegram, Twitter, Instagram and website).
- By holding XXX FAN TOKEN of the team and guessing the prediction of the match which has the NFT as its subject (e.g. during the MILAN-INTER derby some themed NFTs were coined. By holding 10 $ACM, 10 FAN TOKEN OF MILAN, and being among the first 100 to have predicted the exact result of the match you had the chance to win the corresponding NFT).
What’s more, in the last months new NFTs -called NFT 2.0– were launched. Unlike classic NFTs, a physical work with an official license is released, besides the digital work/token. They can be purchased through bidding auctions in which you are entitled to participate by holding in your wallet XXX FAN TOKEN related to the NFT 2.0 issued. The coin you can use to buy NFT 2.0 are SSUs.
The first NFT 2.0 to be purchased during an auction was the glove signed by Antonio Giovinazzi, F1 driver for the SAUBER (Alfa Romeo) team. In order to take part in the auction, every user needed to own a certain number of SAUBER FAN TOKENS.
Once the requirement to hold a certain number of FAN TOKEN is met, it will be possible to participate in a descending-price auction. How does a descending-price auction work?
- The auction will start at a fixed amount of SSU (usually high)
- The price will be periodically reduced by some amount until the object is redeemed
- There are no offers, and the item can be redeemed at any time if someone decides to buy it at the present price
First of all, you need to own XXX FAN TOKEN as access requirement. When the auction starts, the initial price in SSU is established (ex. 40,000 SSU). If no one redeems the object (i.e. no one is willing to spend 40,000 SSU for the NFT), the price will be reduced after one minute and it will drop to e.g. 39,000, then to 38,000 and so forth, until it is bought.
The number of FAN TOKEN as an entry requirement and the starting SSU price are announced by SOCIOS on the relevant social platforms.
FFan Token Offering (FTO®) and how to use them to earn CHZs
After having introduced the functionality of the SOCIOS app, let’s see how to make the most out of the CHZs we have purchased to generate additional CHZs (beware, you can’t always generate a surplus of CHZs, we will now see why).
In the SOCIOS app (this is the only tool), it is possible to participate in FTOs (Fan Token Offerings), i.e. pre-sales of FAN TOKEN. This FAN TOKEN will then be listed first on the CHILIZ Exchange and -after a few minutes- on the SOCIOS app itself, because where only sell/buy market orders can be placed (there is no possibility to place limit orders). Therefore, if you want to take full advantage of FTOs and their volatility you will have to sign up to Chiliz exchange.
FTOs have a fixed price in terms of Euros, but a variable price in terms of CHZ.
The operation is very simple. By following the official telegram channels chiliz_io and the CHZ Twitter profile, easily keep up-to-date with all FTO-related matters (date, time and max distribution). Once the FTO countdown on the app is over, it will be possible to purchase the FAN TOKEN.
Each FTO has a maximum TOKEN purchase limit for each user which will be set in advance by SOCIOS itself. There is also a maximum number of available TOKEN for each FTO; therefore, not all users will be able to buy FAN TOKENs in the presale.
SOCIOS officially estabilished one month ago that from the end of the FTO to the listing on CHILIZ EXCHANGE it will take a maximum of 7 days (in the past, from the end of the FTO to the listing there was no fixed timeframe).
For more information on FTOs and the total FAN TOKEN market, such as supply, distribution, market cap and more, see https://fantokenstats.com/.
LNow let’s focus on how to gain more CHZ, starting from our first CHZ purchase, by exploiting FTOs.
First you need to be able to buy some FAN TOKEN in the FTO through the SOCIOS app; then you need to transfer them as soon as possible from SOCIOS to the CHILIZ Exchange (TOKEN will be transferable usually 24 hours before listing) and finally once the TOKEN is listed you need to sell them if you generate a surplus in CHZ compared to the FTO price.
Keep in mind, however, that -as explained above- the purchase in FTOs takes place at a fixed price in terms of Euros, but variable in terms of CHZ (depending on the current CHZ/EUR value), so be very careful.
Why the price of FAN TOKEN in CHZ is not fixed? In order to understand this, we can make an easy example:
Consider one of the FTOs made (SAN PAULO token): the price of FTO® was 1.74 €, corresponding to 4.14 CHZ. These two values are linked by the following formula:
If in the period following the purchase of the SAN PAULO TOKEN, the price of CHZ/EUR had risen, the value in terms of CHZ of our FAN TOKEN would have fallen, causing a temporary loss with respect to our intial CHZ amount.
CHZ/EUR and FAN TOKEN/CHZ are negatively correlated, meaning that as CHZ/EUR goes up, FAN TOKEN/CHZ goes down and vice versa. For those interested in the speculative rather than the sporting aspect, the following example will highlight the risk and the opportunities to hold FAN TOKENs given that, as CHZ/EUR rises, their value in terms of CHZ would decrease.
Let’s go back to the previous example, where SAN PAULO TOKEN was priced 1.74€ for the FTO. You can obtain the price in CHZ with the formula above mentioned:
1.74 Euro : 0.42 current price of a CHZ/EUR = 4.14 CHZ per FAN TOKEN
In the days following the listing, the value of CHZ/EUR went up from 0.42 to 0.453 . This caused a decrease of the CHZ price of SAN PAULO TOKEN. Using the same formula, you get:
1.74 Euro : 0.453 current price of a CHZ in EUR = 3.84 CHZ per FAN TOKEN
In this case, SAN PAULO price went from 4.14 CHZ to 3.84 CHZ, which is always equivalent to €1.74. This is very good for a CHZ holder, since it costs less to purchase SAN PAULO now. However, this is not good for a SAN PAULO holder, who would have had a momentary loss in terms of CHZ. Please note that in this example, the value of the invested capital in EUR remains unchanged!
Why is it important to talk about momentary loss in terms of CHZ? We want to underline two reasons:
1. If in the days following the listing, the coin CHZ were to fall to the values at the time of the FTO, we would no longer have a loss in terms of CHZ on our FAN TOKEN.
2. If during the listing of the FAN TOKEN, there should be a rise in the relative TOKEN, we could recover any loss in terms of CHZ by selling the underlying when it reaches a value in CHZ higher than the FTO price.
WARNING, the momentary loss in CHZ could become permanent if in the days leading up to the listing, CHZ makes a big rise that may not offset the rise in the FAN TOKEN just listed on the Exchange.
In summary, in order to speculate, and obtain hypothetical gains in terms of CHZ, it is necessary to participate in the FTOs by selling the TOKEN on the CHILIZ Exchange at the time of listing or immediately thereafter (always taking into account the possibility that there may be a temporary if not permanent loss in terms of CHZ).
It is important, and recommended, to look at old listings in order to understand how the price behaves on average and thus to identify a suitable strategy to accumulate more CHZ.
We would also like to remind you that it is absolutely necessary to carry out the various identity checks on both SOCIOS and CHILIZ EXCHANGE in order to avoid limits on the movement of CHZ and FAN TOKEN between their platforms.
The only question that remains is how to transfer FAN TOKEN from SOCIOS to CHILIZ EXCHANGE and vice versa. In this regard, we would like to point out that the transfer of FAN TOKEN takes place on the CHILIZ network and has no cost. The same is not true for the CHZ coin, as we will explain.
The steps are as follows:
SOCIOS -> WALLET -> WITHDRAW -> SELECT TOKEN CONCERNED AND QUANTITY -> ADD RECIPIENT -> ENTER ADDRESS OF YOUR CHILLIZ EXCHANGE WALLET
In order to find the address of your EXCHANGE CHILLIZ WALLET, you have to go to:
CHILLIZ EXCHANGE -> WALLET -> DEPOSIT -> NAME OF THE TOKEN YOU WANT TO DEPOSIT -> AND COPY THE ADDRESS TO BE ENTERED ON THE SOCIOS APP.
In order to move FAN TOKEN or CHZ from Exchange to SOCIOS, this is the procedure:
CHILLIZ EXCHANGE -> WALLET -> WITHDRAWROW -> SELECT TOKEN AND AMOUNT -> COPY SOCIOS WALLET ADDRESS
Inorder to find the address of your SOCIOS WALLET, you have to go to:
SOCIOS -> WALLET -> DEPOSIT -> SELECT THE COIN YOU HAVE CHOSEN TO BE SENT FROM THE CHZ EXCHANGE -> COPY THE ADDRESS TO BE ENTERED ON CHZ EXCHANGE
In case you are speculative and tend to do FTOs and related listing on Exchange to take advantage of initial volatility, once you sell you will end up with CHZs which in turn you will have to send back to SOCIOS in view of the next FTOs.
The least expensive step to take is to buy low volatility FAN TOKEN (all pairs on the Exchange are traded in CHZ) and send them at no cost directly to the SOCIOS APP, then convert them back to CHZ by selling them on the market.
However, the direct transfer of CHZs to SOCIOS is not recommended, as the coin in question uses the ERC-20 standard, which is notoriously expensive: at peak times, in order to transfer 100 CHZs, 140/150 CHZs are required as a transaction FEE!
NOTE: Transactions involving incoming and outgoing CHZ on SOCIOS are not enabled over the weekend as they are approved manually. If you do so anyway, your transaction will remain pending until the next weekday.
The commission costs for trading on SOCIOS and CHZ EXCHANGE are as follows:
1. 1% withdrawal of CHZ from SOCIOS,
2. 0 for FAN TOKEN,
3. 0.6% in case of FAN TOKEN sale on CHZ EXCHANGE and 0 in case of purchase,
4. 0.5% service fees and about 5% margin trading on SOCIOS.
Below you can read some tweets on the latest news on the CHZ 2.0 chain to aim to ease transaction costs, expand the ecosystem and reward stakeholders:
HOPING THIS GUIDE WILL HELP, HERE ARE SOME LINKS TO FIND OUT MORE ABOUT THE PARTNERSHIPS THAT HAVE ALREADY BEEN SIGNED AND WHERE YOU CAN FIND OUT WHAT’S NEW. IF YOU HAVE ANY DOUBTS YOU CAN CONTACT @mttsb97
https://t.me/CryptoSphereItalia Telegram group of the guide’s editors
https://www.socios.com OFFICIAL SITE of Socios
https://t.me/chiliz_io OFFICIAL GROUP
https://t.me/ChilizNews NEWS CHANNEL
https://www.tradingchiliz.com/j/l55 EXCHANGE CHILIZ
https://rocketfan.com DATA AND INFO ON THE FAN TOKEN MARKET
https://medium.com/chiliz NEWS WORLD CHZ/SOCIOS