NBA Star Uses Crypto to Leverage His 34.4 Million Dollar Contract ~ #tipofthemountain

I'm honestly really surprised this isn't getting more press. I consider myself a pretty avid sports fan, but the NBA is probably the sport I care about/watch the least. I had never heard the name Spencer Dinwiddie before, until I saw him on a segment on ESPN. The title was what caught my eye, "What made you interested in selling shares of your contract into digital tokens"? I was like, whattttttttttt??!!??!!

Being in this space now for the past 5 years, I couldn't believe what I was reading, sad part was I was at work and I couldn't hear it. So I made sure to research about it when I got home. Here's what I found out.

Spencer created his own token, "SD8" (his initials and jersey #) using the Ethereum BC, and sold them to investors at $150,000 each with the caveat that they couldn't do anything with them for one year. There were other stipulations such as you had to have a net worth of at least a million dollars, or had made at least $200,000 consecutively in the past two years to participate in the token sale. Spencer's contract in the NBA is fully guaranteed regardless of performance or injury. So the risk to investors is basically nill. The biggest limitations on his contract, however, is that his money is paid out over time. Spencer figured he could invest his money now better than he could in the future, which is why he did this. He raised 13.5 million dollars on his token sale, which is essentially a business loan where he gets his money up front instead of waiting the full 3 years of his contract.

So what do the investors get??? From the article I read from Bitcoin.com:

Dinwiddie’s three-year bond is forecasted to pay out 4.95% base interest on a monthly basis, with the entire principal dispensed at the end of the period upon maturity in a bullet payment.

source

Interest on their capital, mostly. But maybe more importantly, for the time being, they are the first people to ever do something like this on a large scale, and the NBA was not at all too happy about it.

Spencer had a year long battle against the NBA which was trying to not allow him to do this, but he came out victorious in court. Although it wasn't the initial vision he had hoped for, he was still able to make it happen in the end.

Hmmmmm??? This sounds an awful lot like something we have here on Steem.....SMT's anyone???

The Steem BC is vastly superior to the Ethereum BC in terms of scalability and speed. The downer on the Steem BC is that not many people know about it compared to Ethereum. Maybe with Justin Sun at the helm, that changes in the near future. Time will tell, but I'm hedging my bets that we will see something similar to this on the STEEM BC in the not too distant future.

I see this token sale as but one snowflake descending on a mountain top. Only to be followed by many more snowflakes, until so many snowflakes gather at the crest, that an avalanche of unseen proportion cascades down the mountain. Tis' only the beginning, and I thank Spencer Dinwiddie for being a crusader of good tech and smart finance.

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