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NBA star, Spencer Dinwiddie, has announced that he has plans to tokenize his current contract with the Brooklyn Nets.
The point guard has long been a fan of cryptocurrency and in a past interview with Bleacher Report, Dinwiddie spoke about his love for Bitcoin.
With the recent announcement that he wants to tokenize his contract, the Charania crypto enthusiast may usher in a new era of contracts into the NBA.
Dinwiddie’s possible tokenized contract
Shams Charania of The Athletic says that Dinwiddie could convert his $34 million dollar contract into a tokenized one.
The Brooklyn Nets are supposed to pay the star $34 million over the course of the 3 years which his contract will run, but if he succeeds in converting it into a digital token, he will receive a lump sum.
Although the lump sum is likely to be just part of the total amount Dinwiddie would earn from his contract in fiat currency, it will afford him the chance to have a significant amount of funds in his possession and increase his ability to make solid investments.
My guy @SDinwiddie_25 is turning his NBA contract into a tokenized investment vehicle.
Bang Bang….Welcome to the future 🔥https://t.co/tO4S90Wp1r
— Pomp 🌪 (@APompliano) September 13, 2019
Essentially, securitizing a contract allows a player to make any investment they want to make at that moment. It offers players a chance to earn differently from the usual staggering amounts they earn over the number of years they’d have committed to with their team.
Charania explained that a tokenized contract will allow Dinwiddie to pay any principal investors with interest. These payments would be covered by the Brooklyn Nets through the funds they owe him in his contract.
This contract, if it comes to be, would not be the first time that Dinwiddie has engaged with crypto related material.
The NBA star is known for having made a series of investments in Bitcoin over the years. He also announced that his personal shoe brand would accept cryptocurrency as payment.
These positions held by Dinwiddie have staggering by several members of the crypto community who see the star as an avenue through which many other NBA players could adopt cryptocurrencies.
Sports personalities and crypto adoption
The tokenization of an NBA contact could lead to other sports personalities also moving towards receiving their dues in cryptocurrency.
Russel Okung, an NFL star with the Chargers once asked to have his wages paid to him in Bitcoin. He recently held a conference at which important information about Bitcoin was provided to attendees.
Pay me in Bitcoin.
— Know Your Worth 🇳🇬 (@RussellOkung) May 14, 2019
Another NFL player, Matt Barkley, requested that the teams he played for paying him in Bitcoin.
These requests from top players could lead to the teams eventually making wage payments using the leading cryptocurrency. Such adoption would be highly beneficial to cryptocurrency trading as a whole.