Chiliz Labs Launches $50M Incubator
Chiliz, a platform that uses blockchain technology for sports tokens, has announced the launch of Chiliz Labs, an incubator program aimed at early-stage projects in the sports and entertainment sectors, with a budget of $50 million.
$50 million incubator program
Jump Crypto, Chicago’s Jump Trading Group’s investment division, supports the initiative. Chiliz Labs intends to invest in Web3 projects that utilize Chiliz’s layer 1 blockchain. According to an email announcement, the company plans to reveal the names of approximately eight to ten projects that will be developed on its network soon.
Chiliz, the company behind Socios.com, a platform that sells coins connected to leading sports teams such as FC Barcelona, Juventus, and Manchester City, has garnered a total funding of $66 million, as per data from Crunchbase. Meanwhile, Sorare, a digital trading card company with agreements with Europe’s top five national soccer leagues, raised over $600 million in funding last year.
Chiliz and Sorare eyeing potential projects in NFT ticket sales and fan token
Projects that may be considered include selling tickets in the form of NFT or providing fan tokens, similar to those on Socios, which allow fans to purchase VIP experiences and participate in minor club decisions. The market capitalization of fan tokens currently exceeds $300 million, with a trading volume of more than $40 million in 24 hours, as per CoinGecko data.
Jump Crypto’s president, Kanav Kariya, has praised Chiliz for offering a unique solution to one of the biggest challenges sports teams and leagues face: the sustainable and affordable expansion of their brand while maximizing global fan engagement. However, some people have criticized Chiliz’s tokens, claiming they aim to deceive fans into thinking they’re investing in their favorite teams.
Chiliz founder and CEO Alexandre Dreyfus rejects this claim and states a high demand for programs that reward fan loyalty, citing similarities with airline loyalty programs. Chiliz blockchain is compatible with the Ethereum Virtual Machine (EVM) and employs a proof-of-stake authority validation system. The market capitalization of its native token, CHZ, is currently just shy of $1 billion.