NBA star uses blockchain to sell digital tokens tied to Nets contract
Spencer Dinwiddie has turned to blockchain technology to tokenize his $34 million contract extension. The NBA star who plays for the Brooklyn Nets, intends on selling digital tokens tied to his contract, enabling him to raise cash up front. He’s yet to reveal how much of the contract amount he wishes to raise upfront.
The point guard signed his $34.36 million contract extension in December last year. However, instead of having to wait for his salary to be paid over the next three years, Dinwiddie intends on selling tokens to investors which will help him raise a lump sum of cash. The investors in his digital token will receive principal and interest, a report by The Athletic revealed.
Dinwiddie becomes the latest in the sports industry to turn to blockchain technology and cryptocurrencies. As CoinGeek reported, boxing champion Manny Pacquiao launched his cryptocurrency project which allows the fans to interact with him on social media platforms. The PAC tokens can also be used to take part in unique challenges by the boxing legend, bid for products such as signed gloves or bid for exclusive seats in his boxing matches. Interestingly, one of the investors in the PAC project was Michael Owen, a former Liverpool and England soccer star.
Argentinian soccer legend Lionel Messi also ventured into blockchain technology last year after he partnered with Sirin Labs, the company behind the Finney blockchain-powered smartphone. The Barcelona attacker serves as the brand ambassador for the Swiss-based company.
Yet another soccer star, Colombian attacker James Rodriguez launched his own crypto token last year. Dubbed the JR10 token, it was launched through SelfSell, a fundraising platform. According to a report by the Daily Mail, the token was so popular that its first batch sold out in its first 12 seconds.
And while many sports personalities have ventured into crypto, for some it hasn’t been as smooth sailing. Boxing champion Floyd Mayweather ended up paying over $600,000 in fines to the U.S. Securities and Exchange Commission (SEC) after being charged with illegally promoting Centra Tech, a fraudulent crypto project that scammed millions of dollars from its investors.
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