Chiliz to facilitate fan token burns, thanks to UEFA Champions League

• Chiliz introduces a new token burn feature for fan tokens based on performance.
• CHZ retraces after more than two weeks of bullish activity.

Chiliz is looking to spice things up in the Champions League and it plans to do that through fan token burns. A move that may revive interest in fan tokens and reveal more about how Chiliz and socios plan to shape the future.

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Fan tokens have been sidelined after the 2022 crash, as investors shifted their focus onto Bitcoin and altcoins.

Chiliz is making moves aimed at reviving interest in fan tokens. Its CEO Alexandre Dreyfus recently announced the introduction of fan token burns where tokens will be burnt every time a team scores a goal and for every win.

Sure enough, Chiliz released a schedule for the quarter-final token burns. It also confirmed that 20,000 CITY fan tokens would be burnt to celebrate Manchester City’s quarter-final win. In total, 50,000 CITY tokens were burnt accounting for the burns for each goal.

Why the burns are exciting to holders

The main thing to note about the token burns is that they will ultimately decrease the circulating supply of tokens over time.

In other words, the best-performing teams will actively contribute to more value for their fan tokens since lowering the circulating supply through burns will contribute to more value.

The token burns might lead to a substantial decrease in the circulating supply of the fan tokens of the best-performing teams over the long term. This kind of development will ultimately make such fan tokens more attractive.

CHZ price recap

CHZ has been on an overall bullish trajectory since the end of March. However, that bullish momentum is now showing signs of exhaustion, while giving way to some selling pressure. CHZ’s $0.126 press time price already represents a 12% dip in the last five days.

Source: TradingView

CHZ traders should look out for a potential bounce back near the $0.123 price level. This is because it will likely interact with the 50-day moving average at that level, as well as the 50% RSI level which is likely to act as a psychological buy zone.

How many are 1,10,100 Chiliz’s worth today

As far as on-chain observations are concerned, Chiliz experienced a surge in social dominance in the last 24 hours. The surge is likely associated with reactions to the fan token burn announcement.

Meanwhile, the supply held by top addresses registered an uptick 25 hours prior to the announcement.

Perhaps a sign that traders were buying the dip. But is there significant buying pressure? CHZ’s supply distribution shows a divided front.

Addresses holding between 100 million and 1 billion coins kicked off April with some selling pressure which eventually tapered out.

Source: Santiment

Addresses in the 10 million to 100 million CHZ bracket have been buying. Similarly, addresses holding over 1 billion tokens have also been contributing to buying pressure.

However, addresses in the 10,000 to 100 million brackets have been trimming their balances, thus contributing to selling pressure.