CHZ loses 12.5% following ChilizX withdrawal issue announcement

By Denis Omelchenko

January 22, 2024 at 11:32 am

Edited by Dorian Batycka

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CHZ loses 12.5% following ChilizX withdrawal issue announcement

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Crypto exchange ChilizX warned users about a ‘withdrawal issue’ related to the Chiliz Legacy Chain network.

ChilizX, a dedicated platform for fan token trading, disclosed in an X post on Jan 22 a “withdrawal issue” related to the Chiliz Legacy Chain network, providing limited details on the nature of the issue. In the post, the ChilizX team recommended users opt for fan token withdrawals using an alternative network known as Chiliz Chain (CC2).

Dear ChilizX Community,

We are experiencing a Chiliz Legacy Chain withdrawal issue on ChilizX. We kindly ask you to use ‘Chiliz Chain (CC2)’ for Fan Token withdrawals.

Make sure you select the correct network for withdrawals. Never withdraw Fan Tokens using Chiliz Chain to a… pic.twitter.com/tgpOAYjmNN
— ChilizX – Powered by $CHZ 🌶️ (@ChilizX) January 22, 2024

In the announcement, ChilizX urged users not to withdraw fan tokens using the Chiliz Chain to a Chiliz Legacy Chain address. While the exchange’s team reassured users of active efforts to resolve the matter, questions arose as some reported successful withdrawals via the network on other crypto exchanges.

While there is no problem withdrawing from Socios or other exchanges with old networks, why is there a problem with Chiliz,which owns the network?
Why don't you make an announcement in advance? You make announcements after people withdraw and make losses
There is a purpose inthis
— Girift (@girift15) January 22, 2024

Following the announcement of the ChilizX withdrawal issue, the native cryptocurrency of the Chiliz ecosystem, the CHZ token, witnessed a sharp decline of over 12.5%. As of press time, CHZ is trading below the $0.1 mark, ranking as the second-worst performer in terms of price over the past 24 hours, according to CoinGecko data.

Chiliz, a blockchain platform with a focus on sports and entertainment, anchors its ecosystem with the CHZ native token. Within this framework, the Chiliz Chain network emerges as a potential successor to the Chiliz Legacy Chain, featuring an on-chain governance system compatible with the Ethereum Virtual Machine (EVM).