NBA guard Spencer Dinwiddie is leading an athlete tokenization revolution in the sports world. Fellow athletes, sports fans and sports gamblers should take note. Investing in athlete tokens might be the next big gamble allowing those with a penchant for risk and reward to increase their bankroll in a whole new way.
What Is Athlete Tokenization?
Athlete tokenization combines the underpinning principles of digital currencies like Bitcoin with the monetary value, marketability and star power of athletes who want to use their platforms to further monetize their talents. It allows investors and gamblers to capitalize off of those monetization efforts as well.
There is, however, one catch in this case. Dinwiddie is not allowing all fans, gamblers and investors to get a piece of his contract. He’s only opening it up to accredited investors, which basically means that only those with a net worth upwards of $1 million can invest. That said, Dinwiddie does hope that in the future, both he and other athletes and entertainers will be able to further monetize their talents and the contracts that go with them alongside fans who are interested in joining them for the ride.
The Benefits of Buying Athlete Tokens
So the question remains: Why should anybody want to buy the Spencer Dinwiddie token specifically and what does athlete tokenization mean for both sports, entertainment and investors?
First off, Dinwiddie is currently in the middle of a three-year, $34-million contract with the Brooklyn Nets. He’s opening up $13 million of that to athlete tokens that can be purchased by accredited investors. The main benefit for Dinwiddie is that he gets to cash in on a portion of his contract before he actually earns the money. The benefit for gamblers and investors is that they earn a profit for committing their funds to the project. He’s allowing an investing firm called Trituarian Capital to handle all aspects of the deal and Dinwiddie has managed to get the NBA’s support with the project after tweaking some of the details over the last year.
The Broader Benefits of Betting on Athlete Tokens
Dinwiddie’s decision to tokenize his contract and capitalize on the present value of money that he hasn’t even earned yet is certainly a unique idea. What’s even more promising are the broader benefits of investing in athlete tokens. Dinwiddie sees a future where rather than trading sports cards or memorabilia for small gains on a small scale, both fans and accredited investors alike will be able to trade athlete and entertainer tokens for one another.
He also believes that anybody who is a public figure earning money at a level the public is aware of is a great opportunity during times of crisis, when athletes and entertainers might be looking for other ways to monetize their brands and earn interest on their millions.
Imagine if LeBron James offered an exclusive camp to token holders or if tennis star Serena Williams allowed investors to fly to Wimbledon with her for a once-in-a-lifetime experience. Beyond earning a profit or a dividend, the sky really is the limit for athlete tokens.
While the majority of gamblers and sports fans still have to wait on the sidelines because these kinds of investments are not yet available to the average person, the future of alternative investing is bright for those with a passion for sports and a willingness to take a risk in order to earn a potentially hefty profit.
The sports world has Dinwiddie to thank for that. He got into Bitcoin in 2017 right before the currency reached an all-time high value of around $17,900. He’s been extolling the virtues of digital currencies and blockchain technology ever since and now he’s becoming an innovator in a way that will allow sports fans to win big without having to place a wager at a sportsbook.
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Odds Shark Staff Fri, Apr 29, 3:00pmBitcoin