According to Chiliz, the project is prepared to offer up to $10,000 in compensation to any FTX user who lost cryptocurrency due to the FTX crash. The initiative covers FTX users who owned CHZ, and Chiliz hires a liquidator to make the coverage easier. Analysts predict that Chiliz’s price may go as low as $0.15 before making a recovery.
Why take this step ?
Chiliz (1) announced its choice to set aside 38 million CHZ to provide up to $10,000 in compensation for each FTX customer who lost cash. The project has decided to work with the liquidator to make this happen over the coming weeks. Chiliz helps users who misplaced money on the FTX exchange. Chiliz has introduced a strategy to help traders who lost CHZ during the FTX-Alameda crash and the ensuing bankruptcy. The project chose to distribute 38 million CHZ tokens to a public address and then pay up to $10,000 for each platform user who held a CHZ token.
In the next weeks, Chiliz will work with the liquidator to enable token distribution and assist in compensating CHZ users on FTX. There were 160,803 holders of CHZ at the time of the news, and it was trading at $0.20. Due to the FTX-caused crypto meltdown, CHZ is still trying to rebound, and the token gave holders of Chiliz overnight losses of 7%. Until last week, the FTX exchange had around 38 million CHZ coins on the chain.
The purpose of this measure
The project started this protection measure to shield CHZ owners and crash victims. The sector does not cover institutions; it solely includes people. To safeguard the interests of the merchants, the plan is currently pending full legal assessment and liquidator clearance.
After the FTX crash, the Chiliz effort is the second of its sort. Tron Labs (2) successfully filed a contract with FTX to assist holders of the TRX and associated tokens in transferring their holdings away from the exchange and into other wallets. In light of the bankruptcy and demise of the FTX exchange, the Chiliz statement reassures CHZ holders that their losses—to the tune of $10,000 worth of tokens per user—would be made up for, leaving them whole.
Bearish analysts on the price of Chiliz
In the continuing bear market, analysts are pessimistic about Chiliz. Market. Crypto researcher Azeez Mustapha claims that CHZUSD may fall below support at $0.15. The coin is now trading at $0.19, and before a rebound in Chiliz, a pullback is probably in order.
