Touted cryptocurrency and NFT: NBA is at the forefront of innovation
The NBA is one of the most forward-looking professional sports leagues, and has always been at the forefront of the world sports industry in the field of blockchain and cryptocurrency.
The NBA is one of the most forward-looking professional sports leagues, and has always been at the forefront of the world sports industry in the field of blockchain and cryptocurrency.
From the league to the players, the encryption color of the NBA league is becoming stronger: the league tries to improve the income structure through NFT and cryptocurrency investment; the team hopes to use virtual currency to strengthen the team’s cultural construction and resist inflation; the players try to pass Investing in cryptocurrency increases your value and guarantees future income.
The NBA’s attention to cutting-edge technological innovation is rare in the world.
After decades of rapid commercialization, the NBA is opening the next era in a very innovative way. This focus on innovation is particularly prominent in the field of cryptocurrency .
In August 2020, the NBA Top Shot quickly became popular after the public beta, and once became one of the most popular NFT products on the market. Many teams such as the Charlotte Hornets have also participated in or are researching attempts to develop NFT and other cryptocurrency-related fields: The Mavericks also set a precedent, becoming the first sports team to accept Dogecoin as a means of payment; Warriors After five years of triumphs, the digital product of six championship rings in team history was also released in the form of NFT.
In addition, many league players represented by Dinwiddie are investing in cryptocurrencies or participating in innovative formats such as DeFi and NFT. “Reaper” Durant also made a fortune with his early investment in Coinbase. The investment field continues to “kill the Quartet.”
The NBA, a sports league that seems to have nothing to do with the blockchain, frequently participates in cryptocurrency ecological investment, giving the sport of basketball a touch of technology behind the vigorous.
NBA League official NFT monthly turnover reaches $40 million
In July 2019, the NBA League, the NBA Players Association and Dapper Labs jointly established the NBA Top Shot, allowing fans to buy and sell specific, officially certified highlight NFTs on the platform.
The platform officially launched its public beta in August 2020. Platform investors include Samsung, Andreessen Horowitz, USV, Coinbase Ventures and other top investment institutions. In addition, NBA stars such as Andre Iguodala [Andrew Iguodala], Javale Mcgee [JaVale McGee], Spencer Dinwiddie [Spencer Dinwiddie] and Aaron Gordon [Aaron Gordon] also participated. Investment in the platform.
The NBA League cut out the highlights of each game. Dapper Labs packaged these clips into a digital package and converted it into NFT format. The digital package was sold on the official NBA Top Shot website for between $9 and $230. The price of the digital package depends on the number, quality, and star level of the player.
In addition to highlights, NBA Top Shot also sells star cards. In addition to text and picture content, the star card also has three-dimensional dynamic presentation methods such as GIF or short video. Star cards can be divided into three categories: Common (common), Rare (rare) and Legendary (legendary). The card price is determined according to the star level and rarity of the card.
Generally speaking, the higher the popularity of the star, the higher the card price; the rarer the number or the more critical Top Shot (excellent or key goal), the higher the card price .
A slam dunk highlight by Lebron James was sold on the platform for $200,000. Now the price of the highlight has gradually risen to US$210,000.
James slam dunk highlights, from the NBA Top Shot official website
In addition to the fans collecting highlights, the players of the league are also participating in the collection of many highlights and even star cards. Terry Rozier from the Charlotte Hornets collected 28 highlights and even owned a Legendary star card. Harrison Barnes, who once served in the Golden State Warriors, also has 29 NBA Top Shot highlights. It can be seen that in addition to fans, league players are also keen to respond to the NFT project launched by the league.
According to data from DappRadar, as of July 5, 2021, NBA Top Shot is the sixth hottest NFT project today. The transaction amount within 24 hours reached 429,000 US dollars, a total of 8,884 users and 15,309 NFTs participated in the transaction .
According to data from DappRadar, as of July 5, the monthly transaction volume of NBA Top Shot reached $44.35 million and the transaction volume reached 5.29 million. A total of 261,000 users participated in the transaction in the past month.
NBA teams accept virtual currency payments and launch NFT products
Musk announced earlier that SpaceX will accept Dogecoin as a means of payment, which has aroused widespread concern in the market. Prior to this, the Dallas Mavericks team has also announced that it will accept Dogecoin as a payment tool for the team’s tickets and merchandise. This decision received enthusiastic support from fans, allowing the team to obtain more than 20,000 Dogecoin sales in less than three days.
Mark Cuban (Cuban), owner of the Lone Ranger team, was exposed to Dogecoin because of his less than 11-year-old son. In an interview, Cuban stated that his son and his son started investing when Dogecoin was less than 1 cent, and became a supporter of Dogecoin. It also allowed its Mavericks team to create an NBA team precedent: accepting Dogecoin Paid.
Cuban also said on Twitter that the Mavericks will permanently hold Dogecoin on the balance sheet. Earlier, Tesla and MicroStrategy also announced that they would allocate Bitcoin on the balance sheet.
With the outbreak of the new crown epidemic, countries have implemented loose monetary policies and printed large amounts of money to save financial markets. This has led to a substantial depreciation of the cash in the hands of companies. On the one hand, the allocation of virtual currency on the balance sheet can resist the inflation caused by many countries printing money, and it can also increase the value of the virtual currency market as the overall appreciation of the virtual currency market.
In addition to accepting cryptocurrency payments, many teams are also actively experimenting with NFT technology, including the Golden State Warriors and the Charlotte Hornets.
On April 27, 2021, the Golden State Warriors announced on their official Twitter that they would launch a series of NFT collections, becoming the first professional sports team to launch an officially authorized digital series of souvenirs. There are two series of NFT products launched this time, including the Warriors’ championship ring NFT and commemorative ticket stub NFT, which were designed by artist Black Madre.
The championship ring NFT series products are copies of 6 NBA championship rings obtained in the history of the team and become NFTs, and they are issued in limited quantities. These include the 1947 NBA championship, celebrating the first championship in league history; the 1956 NBA championship; the 1975 NBA championship; the 2015 NBA championship; the 2017 NBA championship and the 2018 NBA championship.
The Warriors Memorial Ticket Stub NFT will bring to life some of the most iconic and unforgettable moments in history. Each ticket stub is hand drawn and digitally created by the famous artist Black Madre.
Brandon Schneider, Chief Revenue Officer of the Warriors, said in an interview: We regard NFT and business digitization as the main means to attract global fans. As an organization, we have been evaluating innovation and innovative ways, and launching this special NFT series is our latest development in this field . In addition, for us, the proceeds from this plan will play an important role in community reconstruction during the COVID-19 period and provide support to the Warrior Community Foundation. Part of the proceeds from the NFT auction was donated to the Warrior Community Foundation to help community construction in the San Francisco Bay Area after the epidemic.
The Charlotte Hornets are not small compared to the Warriors’ five-year triple crown in popularity and past team record, but they have always been unwilling to be behind in terms of innovation.
Despite the loss in the play-offs, the Charlotte Hornets’ journey this season has ended early. But one of their most proud achievements this season may be that this came from off the court-the Charlotte Hornets became the first NBA team to successfully sell game tickets with the NFT.
On May 14, Beijing time, the Charlotte Hornets launched the team and the league’s first NFT product-a commemorative ticket presented in the form of NFT. The series of tickets is to commemorate the first season of the Hornets joining the league (1988-89 season), the number is limited to 88, each ticket price of 4.99 US dollars.
“We have always been the team in the league that most want to stay ahead of the trend of the times,” the Hornets president Fred Whitfield said in an interview. “I’m very happy that the Hornets can become the first team. One of the professional teams where fans provide NFT collections. Innovative DNA flows in the blood of the Hornets. We hope to provide fans with exciting NFT collections, and the barriers to purchase are very low. Hope fans will like this Design .” He also said that in the next playoffs and possible playoff schedules, the Hornets will also launch other NFT collections.
The league’s popular star invests in virtual currency exchanges and earns 31.39 times the profit
With the deepening of commercialization, more and more NBA players frequently set foot in the investment field. For some players, basketball is only part of their job, and more lucrative jobs are often off the court.
The NBA has never lacked talented players with outstanding talents, but there are very few who can play in the investment circle. Kevin Durant, the current star of the Brooklyn Nets, may be one of the few players who can play the court and invest.
As the top five players in the league today, Durant’s annual salary in 2021 is as high as $40 million. But as early as 2017, Durant and his agent Rich Kleiman co-founded the investment company Thirty Five Ventures. The company’s business includes contacting commercial sponsors, making venture capital investments in start-up companies, and managing media assets and funds.
Thirty Five Ventures participated in the D round of financing of the digital currency trading platform Coinbase in 2017. At that time, Coinbase raised US$100 million, with a market valuation of approximately US$1.6 billion. But in the next year’s E round of financing, Coinbase’s valuation quickly soared to $8 billion.
By April 2021, Coinbase will be listed on the Nasdaq under the name of “the first share of the global cryptocurrency exchange”. Its highest stock price reached US$342, and its market value was once close to US$86 billion, making it the highest market value exchange in the United States. . As of the time of this writing, Coinbase reported $240.72 per share, with a total market value of $50.23 billion, which is still the highest market value exchange in the United States.
With this investment, Durant’s value has also skyrocketed. According to preliminary statistics, Durant’s profit in this transaction has increased by at least 31.39 times .
Coinbase stock price trend
Dinwiddie: NBA player who is most optimistic about blockchain
Spencer Dinwiddie (Dinwiddie) is also a star from the Brooklyn Nets, his story with cryptocurrency may be more widely circulated.
Dinwiddie had previously asked the Nets to pay his salary in Bitcoin when he accepted a three-year, $34 million contract with the Nets. Although the original request was directly rejected by the Nets, through patient communication and appeals, the league and the Nets were eventually persuaded to agree to this alternative salary payment method.
Dinwiddie told Leo Sepkowitz of Bleacher Report in October 2018 that he owns several thousand dollars worth of Bitcoin (purchase prices range from 3000-4000 US dollars). At the current bitcoin price, the decision to buy bitcoins with salary has made Dinwiddie at least nearly 10 times more profitable .
In addition to direct investment in cryptocurrency, Dinwiddie has also participated in the creation and investment of many cryptocurrency-related projects. A few days ago, news broke that Calaxy, the creator’s encrypted application platform established by Dinwiddie, completed a $7.5 million financing. Calaxy is the abbreviation of Creator Galaxy, which aims to use blockchain technology to provide a platform for community participation for a new generation of influencers and content creators, and become the future of the creator community economy.
Calaxy’s goal is to bring fans and creators closer together by introducing many digital features, including video calls, voice messaging, and fan club membership. The platform can arrange for users to have short video chats with his favorite athletes, or to participate in one-on-one cooking classes with celebrity chefs. All functions are built into the app. The app provides artists with a new way to interact with supporters, while allowing creators to cast and sell NFTs.
The project is built on the Hedera Hashgraph platform network, with Roham Gharegozlou, CEO of Dapper Labs serving as a strategic consultant.
This project involves a number of venture institutions such as Red Beard Ventures, ArkStream Capital, NGC Ventures, Genesis Block Ventures, etc. participating in investment. In addition, National Football League player Ezekiel Elliott, The Bachelor’s Matt James, National Basketball Association coach Luke Walton, PayPal former head of blockchain strategy Jonathan Padilla, and NFL player Larry Ogunjobi also participated in the investment.
Why do NBA leagues and players invest in cryptocurrencies?
The NBA is one of the most forward-looking professional sports leagues. According to an interview with Dapper Lab partner director Caty Tedman, the NBA has identified blockchain technology as something that may have an impact on their business. This is why the NBA decided to cooperate with Dapper Labs for the NBA Top Shot .
The NBA has long been one of the most innovative leagues looking for ways to make money. The 2020 new crown epidemic caused the NBA’s ticket revenue to be cut in half. Finding a new revenue growth point has become a thorny issue for the alliance. As the blockchain technology matures, the NBA has also cooperated with the official authorization to develop the NBA Top Shot to increase the league’s revenue.
The NBA can get a sales share from the sale of new data packages . In addition, when users resell data packages or highlights on the platform, they can also share an additional 5% of profits. With the expansion of the platform and the increase in the liquidity of the NFT, the NBA will be able to obtain an additional sum of money from the platform.
NBA players can get a share of sales revenue through this project . Some players decided to buy their own highlights. This allows people in the league to see the future potential of the project. When the project announced that it needed financing, many players participated in the financing of the project.
One of the players involved in the financing, Javale Mcgee (McGee) once said in an interview: “The project is very innovative. I understand the working principle of sports cards. They are technically digital cards and are located on the blockchain. This is absolutely It’s one of the most impressive things I’ve ever seen. I really like Bitcoin and all cryptocurrencies. I wanted to try my luck with this company, but the result was perfect.”
According to the American magazine Sports Illustrated, about 60% of NBA players went bankrupt within 5 years of retirement, and some even had to beg and steal. According to data from the well-known investigation agency Sporting Intelligence, the average salary of NBA players in 2018 was US$7.77 million, far exceeding the Premier League, La Liga and other football leagues. An annual salary of one million can only be regarded as a low-level player in the NBA. Many NBA players are not good at managing property and profligate, leading to financial difficulties after retirement.
The poor image of retired players is not conducive to the branding and image building of the NBA. This has led the NBA to promote economic self-education among its young stars in recent years. The NBA also encourages players to hire professionals to help take care of their huge assets. Under the guidance of professionals, NBA players began to invest in cutting-edge projects, including blockchain.
Andre Iguodala, president of the NBA Players Association, even held a conversation between NBA players and Silicon Valley to promote investment opportunities and expand players’ knowledge about technology. Iguodala once said in an interview that he believes sports-related souvenirs are a safe bet even in an industry as unstable as NFT . For example, he said, “Michael Jordan will always be considered one of the greatest players of all time, so his shoes will stand the test of time.”
The NBA’s overall league expectation for the future of blockchain
The NBA has always hoped to achieve income diversification. NBA Top Shot is a very good and growing platform revenue.
Each year the league will hold a fixed number of games (each team needs to play 81 regular season games). Both the regular season and the playoffs will produce highlights of varying quality and quantity. In the past, these clips can only be used as a means of propaganda, so that fans are enthusiastic about it. But the blockchain allows these fragments to increase their value, bringing additional and expensive revenue to the alliance. With the growth of the platform and more and more fans participating in NFT transactions, the league can get a share of the transaction. In the future, the NFT revenue share of the league will only become higher and higher.
Investing in the blockchain is a means of asset allocation for players. For players, as long as the funds are allocated reasonably and can bring returns to them, it is best to make future income more stable. As the league’s economic self-education for players has improved, players have also invested in their optimistic areas. This prompted Durant to invest in Coinbase and other players to participate in the financing of NBA Top Shot.
As these successful investment projects become known, more players will invest in blockchain-related projects in the future, bringing considerable income returns to the players.
The NBA also hopes to sell more valuable products to fans. Limited by the physical world, fans could only buy T-shirts, dolls and other peripheral products before, and even some countries did not have direct channels to purchase these peripheral products. NFT can break the distance or the restriction on the pipeline. As long as you have a network, you can create an account to purchase official highlights. The official endorsement and rarity greatly increase the collection value of NBA Top Shot. This will also encourage more NBA fans around the world to collect these highlights.
The NBA has invested in the blockchain because it sees the future potential of the blockchain and can bring returns to it. Players from the league to the bottom have participated in the investment of the blockchain and have received a lot of return.
In addition to increasing revenue, the NBA also uses blockchain to strengthen its cultural influence, allowing fans all over the world to purchase collection-related NFTs. The NBA’s investment in blockchain projects have also blossomed recently and have become a news page. These projects will also become an introduction for other sports leagues to join the ranks of investing in the blockchain, giving the blockchain ecology more vitality.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/touted-cryptocurrency-and-nft-nba-is-at-the-forefront-of-innovation/
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