Spencer Dinwiddie of the Brooklyn Nets professional basketball team is reportedly planning to tokenize his $34 million NBA contract extension.
Following a three-year $34 million NBA contract extension, Dinwiddie is reportedly going to sell digital tokens tied to the contract, wherein investors in the offering would receive principal and interest, Fox Business reported on Sept. 14.
NBA gradually embraces crypto
Dinwiddie thus joined other NBA players engaged with digital currency. In August, the Dallas Mavericks became the second NBA team to accept Bitcoin (BTC) as a means of payment for match tickets and merchandise. Back in 2014, the Mavs’ rivals, the Sacramento Kings, became the first NBA team to accept Bitcoin for promotional products as well as for tickets.
Also that month, the NBA and its affiliated union — the National Basketball Players Association — partnered with Dapper Labs of CryptoKitties-fame to release a new crypto collectibles game. Fans will purportedly be able to gather live footage of NBA games that can then be used in some capacity to build a competing roster for the game.
The other side of the coin
With the increased adoption of digital currencies, some athletes have become involved in cryptocurrency-related schemes. In mid-August, news broke that legendary American professional boxer Mike Tyson was spearheading a new blockchain-based entertainment platform for fighters dubbed Fight to Fame.
However, Tyson subsequently denied the news, claiming Fight to Fame to be a fraudulent scheme.
Earlier this year, the United States Securities and Exchange Commission fined American boxer Floyd Mayweather and music producer DJ Khaled for promoting Centra Tech’s initial coin offering on social media. The total amount to be paid by DJ Khaled comprised $152,725, while for Mayweather it was $614,775.