ChilizX Issues Withdrawal Warning
On January 22, the crypto exchange ChilizX alerted its user base to a critical withdrawal issue affecting the Chiliz Legacy Chain network. This platform, which specializes in trading of fan tokens, advised users through an official post to avoid using the Chiliz Legacy Chain for withdrawals, instead recommending an alternative in the form of the Chiliz Chain (CC2).
Impact on Fan Token Trading
The ChilizX team’s announcement emphasized the importance of not attempting to transfer fan tokens from the Chiliz Chain to a Chiliz Legacy Chain address, citing potential issues. Despite reassurances that the issue is being actively addressed, the lack of detailed information provided has left many users with concerns, as reports of successful withdrawals on other exchanges have surfaced.
Market Reaction to Withdrawal Woes
The ripple effects of the ChilizX announcement were felt immediately in the cryptocurrency market as the CHZ token, the native cryptocurrency of the Chiliz ecosystem, saw its value plummet by over 12.5%. Currently, CHZ’s price has dipped below the $0.1 threshold, making it one of the poorest performers in the recent 24-hour cycle, as per CoinGecko data.
About Chiliz Ecosystem
Chiliz operates a blockchain infrastructure targeting the sports and entertainment sectors and uses the CHZ token as the cornerstone of its ecosystem. The Chiliz Chain network, designed to eventually take over from the Chiliz Legacy Chain, boasts features such as an on-chain governance mechanism and compatibility with the Ethereum Virtual Machine (EVM), setting the stage for a more robust and functional blockchain environment.
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