FIFA World Cup kicks in demand for CHZ Token

- The year 2022 a decisive year for cryptocurrencies

- Chiliz Token been a popular token as a precursor to the FIFA World Cup

- In 26-40 age group, female traders account for 63% and male traders about 58% of CHZ Tokens

Mumbai: ChiliZ token (CHZ), the official token of the Socios.com fan voting portal, gained major traction ahead of the recently concluded FIFA World Cup. It's been a popular token as a precursor to the FIFA World Cup. The token offers voting rights to fans for activities related to their favourites, teams and players, says a study.

Among female traders, users in the age group of 26-40 had the highest share (63 per cent) of CHZ tokens, whereas users between 41 and 60 had 28 per cent of them. Among male traders, users between 26 and 40 had 58.29 per cent of CHZ tokens, and those between 18 and 25 held 12.9 per cent of the tokens, reveals the study by WazirX, a crypto exchange.

Talking to Bizz Buzz, Raj Kapoor, founder, India Blockchain Alliance, says: "There could be no better endorsement for football like the finals! The Chiliz Token roared as did the Argentina Fans and most of the world! But sadly the slide is back. Algo fared no better even though they are official sponsors."

However, Argentinian soccer fans have many reasons to celebrate, for not only did they win the cup, but unlike the majority of altcoins that are being sliding, the country's native soccer cryptocurrency also achieved significant advancements, he said.

According to Kapoor, "in the long run, however, we can be optimistic as Chiliz's fan token creator, and several football clubs launched more fan tokens, which had their initial launch on the trading platform MEXC to expand their scale in the secondary market. The FIFA World Cup could be the catalyst in growth here."

According to the report, the year 2022 will go down in history as one of the decisive years for the crypto ecosystem. The year started with hints of a bear market on the horizon, and in the span of a few weeks, we saw the industry turn upside down.

After five years of consistent efforts to provide easy crypto access to users, we witnessed market sentiments reaching an alarming low. This was in contrast to the positive sentiment we saw in the last few years, especially in 2021, when crypto saw its best bull run ever.

A few reasons could be behind this, says the report.

Increase in the number of crypto users: Market perceptions were now dependent on 100 times the number of users as compared to the last bear run. The price fluctuations, as a result, were also drastic.

Regulatory uncertainty: The country is still on the brink of an uncertain future when it comes to crypto, with no regulations to protect users in case of massive losses in the portfolio or bad actors who run fraudulent businesses to trap vulnerable investors.

High Taxes: The last budget session saw the government not committing to grant crypto legal tender status. At the same time, it imposed high taxes on sale transactions and gains, which indirectly acted as a deterrent for investors from getting into this space. Existing investors also started pulling out because the gains in virtual digital assets would not be for them to keep, resulting in an unfavorable situation. Not just that, there was also a lot of ambiguity on how taxes will be calculated and also about the TDS to be deducted on trading platforms.

The above factor also significantly affected WazirX's trading volumes and other market players' volumes. Starting April 2022, when the tax laws came into effect for virtual digital assets, we saw a drastic decrease in the number of trades per day as compared to last year or even the previous month.

Many leading projects, and market aggregators, with a great record and potential couldn't survive the volatile market conditions. In lieu of increasing scrutiny that the market was subjected to after user portfolios took massive hits, many projects crumbled due to a weak foundation and unethical practices.

Elon Musk's Twitter takeover news reflected in the crypto purchase behavior of users. News of Musk offering to buy Twitter started floating in mid-April. The trading volume of Doge on WazirX went up by 1300 per cent compared to the previous week at that time. The volume dipped when the deal apparently fell through. However, towards the end of October, when the Twitter acquisition by Elon was near completion, the trading volumes went up significantly by 3000 per cent despite low trading volumes in the previous few weeks, the study revealed.

There could be no better endorsement for football like the finals! The Chiliz Token roared as did the Argentina Fans and most of the world! But sadly the slide is back. Algo fared no better even though they are official sponsors

-Raj Kapoor, founder, India Blockchain Alliance