Nets Guard Tweets ‘BTC’ As He Plans to Tokenize His NBA Contract

Brooklyn Nets guard Spencer Dinwiddie is ready to play ball with the digital economy. He’s going all in on tokenization. The NBA player is planning to start a company that will turn his $34.36 million, three-year contract into a digital investment vehicle.

According to The Athletic, several sources say that Dinwiddie plans to convert his contract into a digital token and then use it as collateral to raise capital.

“In a securitization, the borrower gives up some future income in return for a smaller lump sum payment. But the borrower, in this case Dinwiddie, then has more money to immediately invest than he otherwise would.

A token is a digital currency term. The bond exists in the digital currency world. Instead of buying the bond from a broker, it is through a token.

According to sources, this Dinwiddie bond would pay investors principal back and interest, which would be covered by what the Nets owe him.”

Dinwiddie also put a pro spin on crypto by tweeting “btc” to his followers on Thursday, prompting a colorful response from leading cryptocurrency exchange Binance.

Replying to @SDinwiddie_25
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— Binance (@binance) September 13, 2019

Morgan Creek Digital partner Anthony Pompliano also gave a shout-out to Dinwiddie for exemplifying one of his mantras: “Tokenize the world.”

“My guy @SDinwiddie_25 is turning his NBA contract into a tokenized investment vehicle. Bang Bang….Welcome to the future.”

Writes Pomp in a blog post published last year, entitled The SEC will mandate Security Tokens,

“It will be difficult for regulators to ignore the benefits of tokenized securities once the technology & impact is better understood.

The idea of regulation becoming proactive, while also increasing compliance and data accuracy/transparency, is quite compelling. Not to mention, the hundreds of millions of dollars and thousands of man hours that can be saved.

Simply, a tokenized securities market is an improved securities market.”

 

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