I guess we all agree that it is hard to keep up with the latest tech news these days. And there is no reason it would be different with the NBA.
About six months ago the NBA started rolling out the NBA Top Shot , which is a blockchain-based platform on which fans buy and sell officially licensed NBA collective highlights called “Moments” . The platform has assessed $ 205 millions in sales in five months and one week in operation, but what caught every fan and sport’s analysts by surprise is the fact that 65% of this figure was made in a week alone, (you read it right), between february 12 and 19.
STREETOPIA reached out to a consulting company working on the project with the league, responsible for the monetization strategy, and they said that the initial goal was to reach $ 275 millions in revenues for the fiscal year of 2021, and that this figure was certainly unexpected to all and it shows how prominent the platform really is.
A reassessed figure for 2021-2022 was officially released yesterday and the league expects for this period an astounding two-billion dollar revenue! Information which has been confirmed by STREETOPIA through the official channels of the league.
But what is exactly that you are buying in layman's terms?
You are buying digital collectible items (which are in fact exclusive footages), with serial numbers, and most of them are with different camera angles that you will be forever one of the exclusive owners, and purchased footage is barred from being uploaded YouTube and other digital video platforms.
One other way to put it is : Let’s say you and Joe were the only guys who bought a certain “Moment”, so you will have the license, blockchain code and serial number, and only you may sell for whatever price you choose.
What is interesting is the fact that serial numbers have added value, that is, if a certain video is being sold for $ 690 dollars, the price tag will vary from $ 690 to $ 220.000.00, depending on the serial number you pick, functioning like a masterpiece in a gallery, where each seller who owns the artwork individually puts their price tag.
Fans can now assemble their own “Moments’ Collection” and sell them like an album of cards. Bear in mind that they will be the only ones who legally own and physically have these videos. Collections are also curated by the NBA.
Refer to the example in this NBA Top Shot item for sale: NBA Top Shot: USD $7,100.00 - USD $250,000.00 Luka Dončić - available from 196 sellers.
Another example would be: let’s say you bought a “Moment” from a rookie for $ 49.00 and then this player becomes the highest paid NBA star ever, you could potentially sell your pack for how much you believe it’s worth, as high as $ 1 million. That’s simply how collectibles work, notably artwork.
If you are good at associating slogans with digital products, here is the slogan NBA officially gave to this platform: ”Witness History, Own the Plays“.
Giannis' slams. LeBron dimes. Kyrie's crossovers. Every night, an NBA star does something so amazing you need to watch the highlight on repeat. Now you can make those plays yours, all officially licensed by the NBA and minted on the blockchain in limited supply and you may resell your collection whenever you wish. Every play you buy comes with full stats and only the owner may resell it
The technology behind NBA Top Shot is NFTs
NFTs are are non-fungible tokens — meaning you couldn't exchange one NFT for another, you may only sell them to another person — that run on a blockchain network, a digital ledger that records all transactions of cryptocurrencies like bitcoin. The difference with bitcoin and other tokens, though, is that each NFT is unique and can't be replicated, produced, shown or played without prior transfer of ownership.
Non-fungible tokens differ from popular cryptocurrencies such as Ether (ETH), Bitcoin (BTC) and Monero (XMR), which are fungible; for example, you can exchange one Bitcoin for any other Bitcoin, that is to say, for the case of NBA Top Shot, there can only be transfer of ownership.
The three leading advantages of NFTs are:
1) They're transferable – Unlike exchange-traded fungible tokens, NFTs are bought or sold (transfer of ownership) on special marketplaces, in this case NBA Top Shot. However, their value depends on their uniqueness, less they are available, the more they will cost;
2) They're authentic – Blockchain technology powers non-fungible tokens. Therefore, you know that your NFT is genuine, since it’s nearly impossible to create counterfeits with a decentralized immutable ledger;
3) They preserve ownership rights – Again, this refers to an NFT’s use of decentralized platforms where no owner can alter the data once committed.
But the intention of the NBA is not merely sale...
In case you have already accessed NBA Top Shot , you will notice that the platform is not uniquely dedicated to sales, but yet there is a button on upper right hand side called “Community”. What they have done is they have created a social network within the sale structure to encourage discussions, buys and sales, and to drive up popularity not only to the platform but also to the league. A true strike of genius.
What is even more incredible, is that part of the income from this platform goes to the players, thus stimulating more incredible plays.
Success beyond the monetary aspect?
Since last Tuesday (and even today) new members can’t sign up due to high demand. Here is the message in full when you try to sign up: “Sign-ups are disabled due to high demand. Get notified when it's back. The Premium Pack drop is scheduled for Feb 26” at 9AM PT”
Well I guess if we thought 2020 disrupted NBA’s plans for growth, revenue, innovation or expansion, we so were wrong! Which is great for us, basketball fans.
