Cryptocurrency News

Tokenization Plan for NBA Player Contracts Progress

Reporting from CoinDesk, was first reported by The Athletic that Dinwiddie – an American professional basketball player – will issue shares bound to his contract starting January 13, 2020. This happened several months after the NBA pushed back its plan to create a tokenization platform for entertainment providers, which basically to issue debt instruments based on their future income.

Dinwiddie announced last year that he would book a three-year contract worth $ 34.5 million with the ethereum blockchain. He hopes to get $ 13.5 million in the first year. Basically, he wants to get the result of tokenization from the value of his contract as a rounded amount in advance, with the token holder receiving payment throughout the season.

The basketball league stated in September 2019 that Dinwiddie’s plan was banned based on negotiating agreements with NBA players. According to Forbes, this specific point of dispute was the potential for Dinwiddie to exercise options in the third year of his contract, by promising significant dividends for investors if he did indeed opt out and sign a higher payment contract.

Dinwiddie told Forbes that removing this clause and offering flat ties instead would allow his plan to continue the tokenization option. Accredited investors will be able to buy tokens with a minimum of $ 150,000.

Paxos Trust Company will provide will services and facilitate payments to token holders using PAX stablecoin pegged to US dollars. Securitize CEO Carlos Domingo said on Twitter last Friday that his company would act as a transfer agent and technology partner for the project.

Spokespersons for Dinwiddie and Paxos did not immediately reply to CoinDesk’s request to comment. However, Dinwiddie tweeted last Friday that the Spencer Dinwiddie bond would be launched January 13, 2020. The NBA stated that the league was reviewing a modified plan.

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