Spencer Dinwiddie, Brooklyn Nets star player is ready to launch his hotly anticipated NBA contract tokenization project on Monday, January 13, 2020.
Dinwiddie first came up with the idea when he signed his three-year, $34.4 million NBA contract with the Brooklyn Nets on September 27 of last year (2019).
Because NBA players don’t get a single check for lucrative signed contracts, Spencer Dinwiddie saw an opportunity to get his money upfront by tokenizing the full contract. The break down of the contract is as follow:
As you can see on the screenshot above, the star NBA player‘s $34.4 million dollars contract gets divided into 4 disbursements with a 4th year option. The Brooklyn Nets and Dinwiddie can then mutually decide if they’re a good fit for each other.
Professional sport figures and cryptocurrency
Not the first professional sport figure to dive into the world of cryptocurrency. However, he is the first NBA player to publicly support the new technology, and launching a tokenized contact as a security.
Famed boxer, Floyd Mayweather run into trouble with the SEC last year for backing a scam initial coin offering (ICO) project last year.
How does Spencer Dinwiddie tokenized NBA contract work?
Instead of waiting to collect $34.4m over a 3-year period, Dinwiddie decided to create, on the blockchain, a cryptocurrrency token that can be purchased by investors.
The token holders will earn a percentage of Dinwiddie’s NBA contract. They will get rewarded with interest overtime. The program, named ‘DREAM Fan Shares‘ will be hosted by the crypto platform, Paxo.
How to participate in Spencer Dinwiddie ‘s NBA tokenized contract project
The minimum investment to participate in Spencer Dinwiddie’s tokenized contract project is set at $150,000. Investors will received a check every two weeks.
To take part, you must be an accredited investors with a $1 million dollars net worth or $200,000 yearly income. Investors will receive SD8 tokens – a combination of Spencer’s name and jersey number.
Investments will be held in a Paxos-based escrow account and dividend paid out with Paxos Standard (PAX) – a stablecoin.
Entertainment-based cryptocurrency projects
The Nets start guard hopes other professional athletes follow suit and utilize blockchain technology to maximize their earnings.
“Every asset class has its associated fixed-income products attached to it and when you look at the NBA, you look at the entertainment as a whole. These are brokers.”
“The brokers kind of determine the value of the assets, the assets are revenue-generating vehicles, which is us. … It’s not the value of our intellectual property, it’s us going out and playing every night … and helping the league out.”
Spencer wants financially secure athletes and those in the entertainment industry to build long-term financially security by creating their own cryptoasset through his new tokenized platform.
My current contract will be the first Professional Athlete Investment Token. #PAInTs give athletes, artists, and influencers financial control of their contracts. And for fans an alternative to our current financial climate.
— Spencer Dinwiddie (@SDinwiddie_25) September 26, 2019
As an expert on Bitcoin-related topics, I’ve found myself as a Journalist at CEX.IO – cryptocurrency exchange. I’m working on articles related to blockchain security, bitcoin purchase guides or bitcoin regulations in different countries.