The World Of Tokenization Is Changing Today
We often refer to the "tokenization of everything".
This is a catch phrase which means that most anything one can imagine will eventually be tokenized. What this means for society is that there will be enormous opportunities out there. It also means that things are going to change a great deal.
Sports is something that captures the heart of many cultures. Sports figures, for better or worse, are often thought of as leaders or role models. Society tends to look up to those individuals providing them with enormous power. Much of what they do is scrutinized.
It can be a Catch-22. When they screw up, that makes national headlines. However, when it comes to adopting something new, sports figures can provide an added boost.
We are looking at that possibility in the world of tokens. What was announced a few months back is going live today.
Spencer Dinwiddle has decided to tokenize his NBA contract. He signed a three year agreement with the Brooklyn Nets and now he has decided to "sell" that to interested investors. The deal is the first of its kind in the NBA, something that is likely to follow, not only in that sport but other ones as well.
The Spencer Dinwiddle Bond (SD8) is going live today with 90 of them for sale. It is a deal that is only open to accredited investors according to the SEC's definition and criteria that must be met. Obviously, this is much of the same in terms of the established system. However, it does mark a new entrant into the field of tokenization, even if the delivery mechanism is familiar.
This move was met with a great deal of resistance by the NBA. It claimed this went against the Collective Bargaining Agreement.
“The described arrangement is prohibited by the CBA, which provides that no player shall assign or otherwise transfer to any third party his right to receive compensation from the team under his uniform player contract.”
https://coinrivet.com/nbas-spencer-dinwiddie-to-launch-tokenised-investment-platform-today/
Dinwiddle did eventually get the NBA approval after coming to an agreement with them. The NBA is obviously aware that this could open the door to other players doing exactly the same.
It is only a matter of time before this is mainstream. In the meantime, it adds even more focus upon the idea of tokens and what can be done with them. The general public is still unaware of tokens along with the opportunities they present. As more athletes get involved, because of the following they have, there will be a lot more attention focused in this direction.
The flexibility of tokenization is going to enable many innovative ways to fund things. Here, an athlete is getting his money upfront, less the discount rate he offered. The investors get the discount rate as their return which is why it is similar to a bond.
Unfortunately, from the perspective of an Average Jane or Joe, this means little. However, at some point, one of the athletes might do this on an decentralized platform that will allow fractional shares to be sold to the millions of fans that the athlete has.
Since it is the early stages, we still see the regulators calling the shots. This, in my opinion, will change as tokens become more popular and there are tokens in the hands of hundreds of millions of people. Then the athletes have a source to tap into.
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Amazing and yes i can see this happening.
Althought i didnt know that a nba player have already did that.