CHZUSDT SELL | S6T4 - Team Trading Post for Team Frontline.
The name and introduction of the project token, which exchanges it can be traded on, project / technical information of the coin/ team background, etc.
Why are you optimistic about this token today, and how long do you wish it can rise?
How to analyze the token? (This can be technical analysis and trading strategies learned from professor's courses) - This section is very important.
Your plan is to hold it for a long time or when to sell.
Do you recommend everyone to buy this token? Give reasons for your answer.
Any other thing you might want to share about this coin/token.
INTRODUCTION: Good day @abdu.navi03 and every member of this great community. Welcome to my entry post for the season 6 week 4 trading competition.
The name of the token I will be trading is Chiliz CHZ. CHZ is a cryptographic decentralized token that was launched by Chiliz and which is used by sports fans especially football fans to have a unique experience with their favorite team having purchased the Fan Tokens associated with the team. These tokens are created and also distributed on the Socio.com platform which is a mobile application that was created by Chiliz itself.
Chiliz is a blockchain-based platform that enables sports fans as well as players to influence their club or the club they would like to influence by having a say in the club’s decision-making process and CHZ is the digital currency built on it. The platform basically addresses two issues which are funding and engagement.
Chiliz is a digital currency that powers sports and entertainment platforms and it grants fans the opportunity to invest in sports clubs allowing them to feel more connected to their teams and at the same time provides sports companies access to funds.
Some other things to know include,
Chiliz platform makes use of Proof of Authority (PoA) which is based on a limited number of validators and this feature brings about the high scalability of the blockchain which in turn brings about the wide adoption of the platform. Though this consensus protocol is less decentralized, it is highly scalable and secured
Chiliz (CHZ) token is currently operating both as an ERC20 token on the Ethereum blockchain as well as a BEP2 token on the Binance Smart Chain. It is also available as TRC-20 on the Tron blockchain
Chiliz aims to create unique non-fungible tokens (NFT) and has partnered with Chainlink which is a decentralized oracle network that provides real-world data to smart contracts.
The following are some of the exchanges CHZ can be traded on.
In early 2018, Chiliz was founded by Alexandre Dreyfus who is the founder of the interactive tourism guide platform Webcity and also a co-founder of the largest online poker site in France Winamax. Chiliz’s Chief Technology Officer is Thibaut Pelletier and the Chief Strategy Officer is Max Rabinovitch.
Chiliz was launched in October 2018 as an ERC-20 on the Ethereum mainnet and its vision is to provide sports fans the means to purchase a direct vote in their preferred or favorite organizations and also to create a crowd management platform for games, teams, events, and leagues across different areas.
Currently, Chiliz has a committed team of more than 40 sports, gaming industry experts, and e-sports. In the 2nd quarter of 2018, the team raised a sum of $66million through a private investment from which the largest portion was used for the development of Socios.com which was released at the end of December 2019.
The platform makes use of the Proof of Authority consensus protocol which has a noticeable difference from other protocols like PoW, PoS, etc. the difference is that PoA allows validation within a blockchain by taking advantage of real identities and this means that as a guarantee, validators make use of their real identity as well as their reputation willingly in the process of validating or creation of new blocks.
The maximum CHZ supply is 8,888,888,888 tokens from which 34.5% were distributed through a pre-sale event and additional token sales. And also, another 20% of the tokens served as a userbase reserve for upcoming users of the Socios.com platform. About a sixth of all tokens were used for strategic acquisitions and about 7.5% of CHZ tokens became an incentive to seed investors. Finally, the team received 5% of tokens as rewards, and the advisors got 3%.
Chiliz blockchain allows fans to influence their sports clubs and this is available due to the utility infrastructure of scalable, blockchain-based Fan Tokens and also, the secure tokenized voting right that is done by the smart contracts on the platform.
The Chiliz ecosystem also has an exchange where users can transfer Fan tokens in a Socios wallet and the exchange makes use of state-of-the-art software and also facilitates 24/7 trading of digital assets.
Below are some of the reasons I am optimistic about the token
Firstly, the platform has opened the cryptocurrency industry to a lot of sports fans especially football fans worldwide and its socios.com platform has aided the use of its native token CHZ. Just as we know that the football or sport community, in general, will continue to grow, so also will the platform as many fans always want to have a say in the club they support and so make use of the platform cryptocurrency which will, in turn, make the token a promising prospect for investment.
We should also know that blockchain technology in the sports industry is still new and that it will keep expanding and so will there be an increase in demand for the CHZ as in the case of Chiliz blockchain and consequently an increase in its price in the foreseeable future.
Also, looking at the historical price statistics, CHZ has been doing great over the past few years, and ever since its inception, it has brought about an ROI of 1016.38% according to CoinMarketCap as of the time of doing this homework.
Moreover, before the bearish trend that the market generally had undergone recently, we can see how CHZ attain its All-time-high during the period of the bullish trend and so by the time the market fully recovers, the token has all the tendency to rise back or even beyond its All-time-high price.
Also, CHZ has a maximum supply of 6,000,316,458 CHZ and currently, there is about 8,888,888,888 CHZ in circulation. This does tell us that there is likely going to be an increase in its demand which will consequently bring about a price increase and thus make it a good prospect for investment.
In this section, my technical analysis will be based on the combination of Price action and indicators, using Tradingview for my analysis and placing my orders on my Binance futures exchange live account. I will be using Tradingview because it has so many technical tools which will aid effective trading.
I will be doing technical analysis on CHILLIZ/USDT in which some theoretical aspects of the token have be emphasized earlier on, my analysis will be based on what's happening currently on the market.
- On my 1D timeframe, I noticed that the market was currently at a resistance level where it has been resisting for some days, then I proceed to a lower timeframe.
- Getting to a lower timeframe which is H1 I noticed the market price was in an uptrend, creating a higher high and higher lows and the market price has retested the resistance level several times, then I added the relative strength index indicator (RSI) to my chart just to filter false signal. Having added RSI to the chart I noticed it was in the overbought region.
- Then I went lower to 15min timeframe to take my entry since it's a short trade, then I went to my Binance futures account to place my sell entry at 0.31247 where my take profit is at 0.3336 and stop-loss at 0.2952.
- A few minutes later than the time I placed the trade, I went back to check the trade and it was doing fine in profit. The image below shows the outcome of the trade.
I plan to hold for a long time and this is because I know that in the long run when the market fully recovers from the recent bearish trend, CHZ will also find its way up and this is attributed to what its platform features have been explained above.
Another reason for my holding is because more sports clubs, especially football clubs, are partnering with socios.com and this will continue to bring about the wide use of its native token and consequently bring about an increase in the token price and thus, huge profit later on.
I will like to recommend that people buy Chilliz because it has some good potential as its blockchain is used is for sporting activities like buying of tickets and some other sport-related activities. Chilliz blockchain is a platform that accommodates Investors because of its usefulness in sporting activities, as we all know the importance of sport in our world today.
Technically, looking at the 1D timeframe it's looking as if it will reverse because it has gotten to resistance that it's yet to be broken, it has to be retested this zone for some days now which might lead to a continuation or reversal and on getting to lower timeframe like 1H it's given a bullish signal, this makes the direction uncertain, that's why I will advise anyone buying Chilliz should wait a little bit before buying.
Chilliz is built on the Ethereum platform and most coins built on the Ethereum blockchain always have high gas fees which will make people run away from the coin. Though as a coin, Chilliz is a very good coin to buy as it has its advantages and disadvantages. A kind note warning I will be giving to anyone investing on Chilliz is that one should not over risk his/her account as it is advisable for the person to use a good risk-reward ratio.
CONCLUSION
Chiliz offers fans the ability to influence what will happen in the club they support. The platform basically makes or turns passive fans into active fans.
The cryptocurrencies market is highly volatile and this is why it is best to carry out one's analysis properly before carrying out any trade. Moreover, proper trading strategies should be put in place and each trader should make use of a risk-reward ratio that best suits him or her.