The NBA has prohibited Spencer Dinwiddie to tokenize shares in his three-year, $34.4 million NBA contract. This messes up his plans to put his contract on the blockchain.
Dinwiddie wanted to sell investors a tokenized security, “$SD8,” on the Ethereum blockchain through his company DREAM Fan Shares. By tokenizing his contract, he planned to raise $4.95 million to $13.5 million. However, it would have had a minimum investment of $150,000 and only been available to institutional investors.
“The described arrangement is prohibited by the C.B.A., which provides that ‘no player shall assign or otherwise transfer to any third party his right to receive compensation from the team under his uniform player contract,” the NBA said in a press statement sent to The Times.
As a reminder, earlier this year, Wozniak said that blockchain is a bubble which could have potential in the future. At the same time, he has admired the Bitcoin, calling the coin “the only digital gold”.