Could This Cryptocurrency Move Be The Next Smart Investment Trend?
Just a few weeks ago NBA guard for the Brooklyn Nets, Spencer Dinwiddie, made history by attempting to tokenize his NBA contract, thereby giving accredited investors an opportunity to actually invest in a professional athlete for one of the first times ever. Though the NBA has consistently tried to quell such activity, the league is now forced to review the possibility. If approved, such possibilities could be new additions to wealth strategies for those seeking to leverage the cryptocurrency space.
Such action is about a digital investment vehicle the likes of which we have not previously seen. Millennials, in particular, have expressed great interest in the possibility. Now, to see what the decision will be. If approved here's how it would work.
The player's tokens are sold through a platform named "DREAM Fan Shares." The initial offering includes 90 tokens and a minimum investment requirement of $150,000, according to The New York Times. The platform's website notes the tokens "will be launched on the Ethereum blockchain" and are only available to accredited investors.
According to "Business Insider," NBA Executive Vice President and Deputy General Counsel Dan Rube previously said the league reviewed numerous versions of Dinwiddie's plan and found the token would "violate collectively bargained league rules," according to a statement. If Dinwiddie's contract securitization is successful, it could prompt other players to follow suit and change how the NBA views future contracts.
All eyes are on the review of this proposed strategy. Decisions are rumored to be finalized within the next month. Either way, this indicates that the traditional, centralized method in professional sports has now taken a blow and cracks will no doubt lead to an overall breakthrough at some point. Savvy individuals should remain poised.