Binance, chiliZ Tie-up To Develop eSports Tokenization Platform

Binance will invest in the tokenization platform of chiliZ for the eSports and sports industries.

by Nina Dimitrova
06 June • 2 mins
In News

Binance, one of the world’s largest cryptocurrency exchanges, has invested in Malta-based chiliZ to develop an eSports and "fan-driven token ecosystem for traditional sports teams". No information about the amount of the investment was revealed.

“Binance’s significant investment in chiliZ will boost our current private placement offering and help us to move faster”, said Alexandre Dreyfus, CEO of chiliZ. “Their support will help us deliver our vision globally, increase our visibility in the blockchain ecosystem and empower our technical vision. I’m also excited that Binance is setting-up in Malta, where we will be able to share resources, enabling a more strategic partnership.”, as quoted on Tuesday by  Medium.

“chiliZ is a creative way to embrace blockchain technology, aimed at building tools and services for mainstream adoption in industries that have a massive global growth rate,” Binance CEO & Founder, Changpeng Zhao said.

ChiliZ is a tokenized blockchain voting platform allowing fans to crowd-manage sports and esports organizations. Its platform is inspired by the “Socios” team control models used by real-life football teams like Real Madrid and Barcelona. On the platform users can buy “votes” in the management of eSports teams and have a say in the running of the team. The “votes” are bought with the chiliZ token ($CHZ). Clients can also exchange the votes back for $CHZ. Initially the token will be released via a private placement and at a later stage the remaining tokens will be distributed through airdrops.

Binance is among the largest cryptocurrency exchanges by trading volume and has more than 9 million users. It managed to rise to the top positions within a few months after its launch in July 2017. Initially the company was based in China, but in 2018 it moved to Malta, attracted by the active support for the crypto industry by the Maltese government.

Binance offers nearly 300 cryptocurrencies, but they cannot be traded for fiat currencies. Binance also has its own token – BNB.