NBA Star tokenizes $34M contract
The sports industry has begun embracing cryptocurrency and allowing it to become a mainstream form of payment and interaction between fans and organisations. Football has made significant gains in terms of football clubs joining platforms like Socios. Another sector within the sports industry that has made smaller, slower gains is the NBA, including tokenizing a contract.
Content:
1. Who tokenized their contract?
2. Will others follow suit?
3. The grass isn’t always greener
4. Our conclusion
Who tokenized their contract?
Spencer Dinwiddie, who plays for the Brooklyn Nets, has decided to tokenize his contract. In other words, Dinwiddie will sell tokens tied to this contract. And, those investors who purchase those coins will have received interest and principal. It brings in a particular new meaning to investing.
Will others follow suit?
Dinwiddie’s choice to tokenize his contract could set a precedent. It may inspire other players to perform a similar action. What becomes even more critical are other areas where the NBA have adopted cryptocurrency.
Others begin using cryptocurrency. Last year the Mavericks started accepting BTC as a form of payment for tickets and other memorabilia. Likewise, Mavericks’ rival the Kings have allowed fans to pay in BTC for a couple of years. It goes to show that there are specific hints that the NBA is turning towards cryptocurrency.
Recently, the NBA player’s union has partnered with a company to release a new crypto collectables game. It appears that this would allow fans to take live NBA footage and build a roster with it. Only time will tell what the game allows fans to do. Nonetheless, it illustrates another area where cryptocurrency has penetrated once again.
The grass isn’t always greener
As we’ve noted in the past, sometimes cryptocurrency doesn’t have the protection that it needs. For example, there could be potential scams. The regulatory authorities haven’t wrapped their minds around it either. For this reason, one has to be careful in how they work with cryptocurrency and what they intend to do with it — for example, the US SEC fined boxer Floyd Mayweather over $600k for promoting Centra Tech’s initial coin offering on social media.
Our conclusion
Dinwiddie’s tokenized contract can provide investors with a chance to invest in something new. It also shows cryptocurrency expansion into another area in the NBA. Two teams are allowing fans to pay in cryptocurrency. Finally, while all of this is good, one does have to be careful not to get in trouble since regulations aren’t exactly the most friendly at this point.