NBA Star to Convert His $34M Contract into a Digital Investment
An NBA basketball player for the Brooklyn Nets, Spencer Dinwiddie, is converting his multi-million dollars contract into a digital token investment vehicle, according to The Athletic’s sources.
Dinwiddie To Securitize NBA Contract
The disruptive effects of cryptocurrencies and blockchain technology are permeating all industries and sectors, including the world of sports.
Most recently, Shams Charania of The Athletic reported that Spence Dinwiddie is seeking to boost his capital and ensure his future income by converting his contract into a digital financial instrument. Charania writes,
Will Spencer Dinwiddie trigger a new future for NBA contract decisions? Maybe, maybe not. But what it is without question is a bold new step.https://t.co/hqNJFIy1ZC
— The Athletic NBA (@TheAthleticNBA) September 13, 2019
Dinwiddie, according to multiple sources, is starting his own company to securitize his NBA contract in the form of a digital token as he begins a three-year, $34.36 million extension with the Nets. It’s unclear how much of the contract amount he wants to raise upfront, but it would likely be less than the total amount, according to sources.
Thus, the Brooklyn Nets point guard Dinwiddie would be the first sports idol to convert his NBA contract into a digital investment vehicle.
Moreover, Charania explains that “A token is a digital currency term. The bond exists in the digital currency world. Instead of buying the bond from a broker, it is through a token.”
Dinwiddie knows what he is doing. In 2018, Dinwiddie took a Harvard business class.
Digital Technology Could Highly Improve the World of Sports
Bitcoin and its blockchain technology are not only dramatically changing the FinTech industry, but they are also disrupting other industries sectors, including sports.
For example, a soccer team bought a player using a digital asset. In effect, in 2018, one of the first transactions using cryptocurrencies in soccer, occurred when the Turkish team Harunustaspor bought a 22-year old footballer named Omer Faruk Kıroglu. Harunustaspor completed this transaction using Bitcoin.
On the other hand, cryptocurrency-based betting platforms are becoming popular in sports. As Bitcoinist reported earlier, Decibet is a platform that enables people to bet on several soccer leagues from all over the world. Decibet platform accepts major cryptocurrencies such as Bitcoin, Ethereum, Bitcoin Cash, Litecoin, Dash, Zcash, Ethereum Classic, and Monero.
Indeed, as the role of crypto assets and blockchain technologies become increasingly significant in sports, Playground Biz forecasts,
In the future, the world of sports could be highly improved by the use of such technologies in the tracking of athletes’ performance metrics, anti-doping measures and even as a boost for the engagement of fans.
What do you think of Spencer Dinwiddie converting his contract into a digital investment vehicle? Let us know what you think in the comments below.
Images via Shutterstock, Twitter @TheAthleticNBA