Brooklyn Nets point guard Spencer Dinwiddie’s tokenised investment platform is set to launch today, but the NBA isn’t happy.
Coin Rivet reported on the basketball star’s plans to tokenise his three-year, $34.36 million contract with the Nets franchise back in September 2019.
It was reported Dinwiddie would start his own company and raise capital upfront before issuing tokens to investors who in turn would receive interest.
Last week, the NBA star tweeted:
“The Spencer Dinwiddie bond launches January 13. I’ll also be taking eight fans to ASW with me.”
— Spencer Dinwiddie (@SDinwiddie_25) January 10, 2020
The 26-year-old’s investment platform will be called ‘DREAM Fan Shares’, through which he will sell 90 SD8 tokens – or ‘Professional Athlete Investment Tokens’.
This will allow Dinwiddie to collect a large portion of his three-year contract upfront. However, the NBA does not approve of his plan.
In October, the NBA gave the following statement to the New York Times:
“According to recent reports, Spencer Dinwiddie intends to sell investors a ‘tokenised security’ that will be backed by his player contract.
“The described arrangement is prohibited by the CBA, which provides that no player shall assign or otherwise transfer to any third party his right to receive compensation from the team under his uniform player contract.”
Since then, Dinwiddie has held numerous meetings with the NBA’s legal team to reach an amicable agreement. His current revised proposal is still being reviewed by the league, according to The Athletic.
The SD8 coins can only be purchased by qualified accredited investors who have passed multiple SEC and legal standards. Due to regulations, the coins cannot be sold or traded for one year, reports Forbes.
Despite uncertainty on the NBA’s part, Dinwiddie seems to be pressing forward with his platform, but this could all still be ultimately undone if the league isn’t satisfied.
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