Why Did The Price Of CHZ Rise? 🚀
Despite the recent recession in the cryptocurrency markets, the remarkable increase in the price of Chiliz Blockchain's cryptocurrency CHZ attracted the attention of crypto enthusiasts. CHZ, which showed a 25% increase in just seven days, reached an unprecedented peak in two months and exceeded the $0.15 limit. This surge represents the third-largest gain among the top 100 cryptocurrencies by market capitalization, surpassing even giants like bitcoin and Ethereum.
One of the reasons behind this remarkable increase is the UEFA European Championship, which will be held between 14 June and 14 July. Used on Socios.com, a platform that facilitates the creation of fan tokens for various sports teams, CHZ represents the interaction between fans and the teams they hold. The value of fan tokens reflects the enthusiasm and participation of sports enthusiasts, and these tokens are predominantly obtained using CHZ.
This increase of the CHZ is reminiscent of a similar situation before the 2022 FIFA World Cup. At the time, CHZ doubled its value just before the start of the global sports event, but experienced a drop of about 40% in December of the same year. 10X Research analysts predict that a similar scenario will emerge in the UEFA European Championship. Analysts are pointing out a possible wave of post-event sales as they expect potential gains for CHZ by mid-June.
This situation once again confirms the phenomenon of 'Buy the rumor, sell the news'. The study titled “Expectation Gains and Event-Oriented Losses in Blockchain-Based Fan Tokens: Evidence from the FIFA World Cup” shows the tendency of sports tokens to be exposed to price increases before major events and then a decrease in prices when these events end. Especially given that football events stimulate consumption and economic activities throughout Europe, the broader impact of this effect on regional economies also draws attention.
