Why cryptocurrency Chillz continues to surge higher today

This little-known token is now up more than 65% since the beginning of the month.

| More on:
Man pointing at a blue rising share price graph.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Today, one of the more distinctive crypto projects is Chillz (CRYPTO: CHZ). This unique cryptocurrency backs a blockchain-based sports entertainment platform, Socios, which allows investors to have a say in the governance of their favorite sports brands. As it happens, the Chillz team and Socios have been on a partnership tear, leading to an impressive rally this month. Today, Chillz is up another 2.8% as of 12:15 p.m. ET. However, over the past month, this token has surged 65.5%, outpacing most major cryptos over this time frame.

On Aug. 1, which is really when Chillz started to pick up steam, Chillz announced a massive $102 million stake in FC Barcelona's Barca Studios. This deal amounts to roughly one-quarter of this endeavor, enabling Chillz to grow its presence in the sports-related NFT and metaverse worlds.

Today, crypto exchange ByBit announced that Chillz would be powering a Fan Token Kickoff for the platform. This contest is expected to run from Aug. 19 to Sep. 2 and give users chances to win 200,000 Tether (CRYPTO: USDT) stablecoins in prizes. 

So what

Given the still-nascent nature of the crypto space, partnerships play an important role for investors in gauging what the growth prospects of a given project are. With the Chillz team clearly in business development mode, this sports-related blockchain platform provider is certainly seeing an uptick in interest.

Now, other projects that have made significant investments in sports-related advertising deals haven't seen the sort of ROI investors might expect. Accordingly, time will tell how fruitful this investment ultimately is.

That said, for those bullish on the future of crypto in the sports and entertainment sector, Chillz is a project worth taking a look at. 

Now what

The whole concept of cryptocurrency being used as a governance or voting tool for fans is certainly an intriguing one. Given the high-profile partnership Chillz has been able to nab thus far, perhaps there's a lot to like.

That said, this project is one that appears to be very niche and prone to risks tied to increased competition and low barriers to entry in this space. Whether Chillz can continue to grow over time will depend on its success with its existing partnerships. Thus, right now, this token is one I'd view as a speculative bet, even with these key partnerships underway.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on International Stock News

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
International Stock News

The CEO of Nvidia just sold 700,000 shares of his company's stock. Here's what investors need to know

What could it mean?

Read more »

A man in a business suit peers through binoculars as two businesswomen stand beside him looking straight ahead at the camera.
International Stock News

Where will Nvidia stock be in 1 year?

You might be late to the party.

Read more »

asx share price boosted by us investment represented by hand waving US flag across winning athlete
International Stock News

Is it too late for ASX investors to start buying US shares?

Should ASX investors start taking the gains from US shares like Nvidia off the table?

Read more »

A US flag behind a graph, indicating investment in US shares
International Stock News

Which US shares are ASX investors buying in 2024?

The ASX's most popular US shares contain some familiar names...

Read more »

A man and a woman sit in front of a laptop looking fascinated and captivated.
International Stock News

Prediction: 2 US stocks that will be worth more than Nvidia 5 years from now

These US stocks have a shot at surpassing Nvidia over the next few years.

Read more »

Digital rocket on a laptop.
International Stock News

Is Nvidia stock going to $150 in the wake of its high-profile 10-for-1 stock split?

Wall Street analysts are reviewing their models in the wake of Nvidia's stock split.

Read more »

A woman walks along the street holding an oversized box wrapped as a gift.
International Stock News

Better megacap stock: Nvidia vs. Microsoft

Megacap stocks have ruled the year so far. Is Nvidia or Microsoft better positioned for the second half of the…

Read more »

A man casually dressed looks to the side in a pensive, thoughtful manner with one hand under his chin, holding a mobile phone in his hand while thinking about something.
International Stock News

Is Nvidia stock a buy now?

Nvidia investors are looking ahead. But there is risk in counting on things that haven't happened yet.

Read more »