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NBA Star Spencer Dinwiddie Tokenizes his $34 M Contract

Prashant Jha by Prashant Jha - 06:53 AM Jan 14, 2020
NBA Star Spencer Dinwiddie Tokenizes his $34 M Contract

NBA Star Spencer Dinwiddie has finally managed to tokenize his $34 million Brooklyn Nets contract. The NBA star made his intentions of tokenizing his contract back in September. Still, NBA opposed any such move citing a CBA provision which bars any players from assigning or transferring their right to receive any form of compensation from a third party. However, despite all the hurdles and objections, Dinwiddie has finally managed to turn his contract into an investment vehicle called Dream Fan Share developed by Securitize.

The Dream Fan Share would sell 90 SD8 tokens, also known as Professional Athlete Investment Tokens (PAInTs) which will be available for $150,000 apiece. However, not everyone can get their hands on these tokens as only accredited investors who have cleared all SEC, and regulatory checks and buyers cannot sell or trade these tokens for one year.

Dinwiddie took out a $13.6 million loan for his tokenization project was also planning to offer dividends to potential investors in case he opts out of the contract in the final year or signs a new deal. Still, the idea was turned down by NBA claiming it would be a form of gambling. The NBA star has also offered to take eight investors to All-Star weekend in Chicago if he manages to get selected for the game.

Sports and Blockchain Technology Mingling Well?

Blockchain technology came to public glare because of Bitcoin's success, and even when governments are still mulling over-regulating bitcoin and other cryptocurrencies, blockchain has managed to attract attention from a number of sectors and now even sports. However, this was no first sports venture to incorporate the use of blockchain and Bitcoin, back in 2014 Sacramento Kings became the first sports team to allow Bitcoin as a mode of payment for its ticket and merchandise sale.

Many other sports leagues and teams have made similar brand deals with different cryptocurrencies, while many others are also mulling over the idea of using smart contracts.

About The Author
Prashant Jha

Prashant JhaAn engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.

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