For more background read Josh Lawler’s article at Blockchain News.
According to an MIT report following months of negotiations with the NBA, and a recent tweet last Friday from Spencer Dinwiddie – the digital investment vehicle will launch on January 13 allowing him to sell his securities-backed SD8 tokens, which can’t be traded for a year, for $150,000 apiece to verified accredited investors under SEC Regulation D, Rule 506 (c).
“He had originally announced the plan in September but met resistance from the NBA, which said issuing the blockchain-based “tokenized security” backed by his contract was prohibited by the league’s collective bargaining agreement.”
— Spencer Dinwiddie (@SDinwiddie_25) January 10, 2020
What he created he said in an interview with Forbes, allows players to structure and issue debt instruments in a digital token form to invest their money how they’d like and it would function as a decentralisation of the personal loan to athletes through bonds they create with their guaranteed contracts as collateral.
Dinwiddie told Forbes that after nearly three months of delays, including a threat from the NBA to ban him from the league during negotiations, the Brooklyn Nets point guard can launch his token-based investment vehicle. Apparently, the league’s biggest objection related to the third year of his contract, which gives him leeway to opt-out and pursue a more lucrative one. He had promised investors “significant dividends” in the case he did land a richer deal in the third year. Apparently the NBA opposed that aspect, calling it gambling. Dinwiddie removed this element from the plan.
But it’s still not clear if the NBA has given the green light. When Forbes contacted the league regarding the NBA’s stance on Dinwiddie’s plan, a league spokesman released the following statement.
“Spencer Dinwiddie’s advisors provided us today with new information regarding a modified version of their digital token idea, which we are reviewing to determine whether the updated idea is permissible under league rules.”
“…Spencer Dinwiddie’s advisers have actually offered us with brand-new information about a changed form of their particular electronic token concept. We tend to be reviewing all of them to ascertain in the event that recommended improvement works with League guidelines.”
“…I’m trying to define an asset class and start it,” Dinwiddie said. “Somebody has to be brave enough to do it. Hopefully, it works and we prove that there’s a market for it. Because obviously if the NBA jumps in with both feet, they’ll be able to do some great things with it.”
“…All those things I said in there are authentic. I’m passionate about blockchain as a whole, decentralized finance as a whole. For the fans, thank you for believing in me. So really it’s just tying everybody together, kinda trying to show the community and fan base, even though the league tried to take a lot of that out, it’s really showing what it means to bring people together because we’re more powerful when we’re together.”
In October 2019, the NBA told the New York Times:
“According to recent reports, Spencer Dinwiddie intends to sell investors a ‘tokenised security’ that will be backed by his player contract. 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.”
- BlockConf DIGITAL Announces Epic 48-hours Online Blockchain Conference - April 7, 2020
- Global Virtual Earth Day Event Planned for April 22nd EST From The Blockchain for Social Impact Coalition - April 7, 2020
- ConsenSys’ Health Division Kicks Off STOP COVID-19 International Ethereum Hackathon – April 13, 2020 - April 7, 2020
- Bitfinex Cryptocurrency Exchange to Offer Staking Rewards Program - April 6, 2020
- European Commission Backed Blockchain Organisation INATBA Joins WEF COVID Action Platform to Address Global Challenges - April 6, 2020
- Blockchain-Fueled Company Mateon Develops Phase 3 Clinical Drug Candidate, Against COVID-19 – OT-101 - April 6, 2020
- US Lawyers Go After Cryptocurrency Ecosystem with Multiple Class Action Suits Against Exchanges and Issuers - April 6, 2020
- Huobi Charity Joins Rally with Blockchain Community in Global Fight Against COVID-19 - April 2, 2020
- Binance Officially Absorbs CoinMarketCap in $400 million deal - April 2, 2020
- RealT Tokenises and Sells USD One Million in Real Estate On Ethereum - March 30, 2020
- IOTA Teams Up with Eclipse Foundation to Work on Decentralised Marketplace and Identity Solutions to Help Fight Pandemic - March 30, 2020
- University of Malta Students Develop and Use Blockchain Voting Application - March 30, 2020
- Japan’s Nomura Securities and BOOSTRY Issue First Blockchain Digital Bond Offering - March 30, 2020
- Opera Rolls out Update and Expansion of its Cryptocurrency-Friendly Browser Blockchain Architecture - March 30, 2020
- Hong Kong Bank Partners with Aegis to Focus On Asset Digitalization Using Blockchain Technology - March 30, 2020
- European Union Looking to Blockchain Technology for Defense? - March 30, 2020
- Tech against Corona (COVID-19) – Dutch Enterprise Blockchain Company TYMLEZ Helps Dutch Government - March 29, 2020
- Microsoft Patents Human Activity Mining for Cryptocurrency Systems – Data Generated Based on Body Activity can be Proof-of-Work - March 27, 2020
- Binance Kicks Off $5 Million Coronavirus Relief Campaign and Donates USD $1 Million - March 27, 2020
- Medici Ventures Keiretsu Companies GrainChain and Symbiont Working Together to Expand Global Operations - March 27, 2020
Also published on Medium.