Brooklyn Nets star Spencer Dinwiddie is reportedly looking to transform his NBA contract into an investment vehicle with the help of tokenisation.
Sports news publication The Athletic has reported that the NBA guard is looking to securitise his contract in the shape of digital tokens.
It is believed that basketball star Dinwiddie will start his own company to tokenise his three-year, $34.36 million contract extension with the Brooklyn Nets.
Reportedly, Dinwiddie will raise a chunk of money upfront which he will then use to issue tokens to investors, who will in turn earn interest on the digital asset.
It is still unclear how much of his contract he wants to raise upfront, but sources suggest it is less than the contract’s total amount.
The news was welcomed by Anthony Pompliano, co-founder and partner at Morgan Creek Digital, who tweeted:
“My guy Spencer Dinwiddie is turning his NBA contract into an investment vehicle. Bang Bang…. welcome to the future.”
Cryptocurrency is quickly becoming a hot topic in the NBA, with the Dallas Mavericks having recently enabled fans to purchase merchandise and tickets using Bitcoin through BitPay.
The NBA and NBPA have also partnered with Dapper Labs – the team behind the hugely popular CryptoKitties app – to develop NBA TopShot, a blockchain-based collectibles game.
NBA TopShot is set to launch later this year as a collectibles experience before its full launch in early 2020.
Interested in reading more cryptocurrency and NBA-related stories? Discover more about the Dallas Mavericks accepting Bitcoin payments.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.