The sports sector has witnessed an increase in crypto adoption lately. Philippines based boxer, Manny Pacquiao announced his support for crypto by introducing his very own cryptocurrency and the Dallas Mavericks followed the Sacramento Kings and started accepting Bitcoin as means of payment.
Earlier this September, Brooklyn Nets’ basketball player, Spencer Dinwiddie revealed that he was steering into the crypto industry as he announced plans to tokenize his $34.4 million NBA contract extension. However, the NBA revealed that Dinwiddie would not be able to tokenize his contract and use it as an instrument for investments.
In a recent discussion with Tone Vays, Bitcoin developer Jimmy Song stated his stance on the same and went on to explain why Dinwiddie might have considering doing the same. He suggested that Dinwiddie’s move might have been an alternative to getting paid in Bitcoin. This was possibly a way for Dinwiddie to sell all or a percentage of his future earnings in order to invest in Bitcoin, Song added.
Tone Vays, on the other hand, described how this was more of a speculative play than security. Even if the NBA allows this, irrespective of its terms which states that the players cannot do this, the players would still have to face the SEC, Vays added. He said,
“So the token holders are basically making a bet that his next contract is going to be bigger and that’s how they make their return back.”
Furthermore, Jimmy Song revealed that every NBA player is scared that they might go bankrupt once they are out of the league and he speculated that Dinwiddie is trying to allocate his money in a reasonable way in order to avoid bankruptcy.