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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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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