NBA TopShot set to take crypto-adoption to the next level through digital collectibles
A new wave of crypto adoption has hit the market in the form of non-fungible tokens (NFTs). These tokens, thanks to Ethereum, allow people to purchase unique digital collectibles.
These collectibles range from art to iconic sports moments and memorabilia. Users have been paying large sums of money for these NFTs.
The first time digital collectibles actually took off was back in 2017 when Canadian company Dapper Labs created dopey-looking cartoon cats called CryptoKitties. These are digital collectibles dubbed as the Pokemon Cards in the bitcoin era.
Each image, developed by Dapper Labs, has a unique sequence of "non-fungible tokens", that are able to be traded on Ethereum blockchain - granting the holder ownership of that particular image.
The popularity of these images and NFTs slowed down the Ethereum blockchain back in 2017 but this issue has been resolved and NFTs in 2020 were rumoured to be worth more than $250million, according to NonFungible.com
Now NFTs are set for another wave of popularity. The NBA has partnered up with Dapper Labs to introduce the "NBA's Top Shot products which is a blockchain trading card system which has already generated over $230million in sales.
This platform allows users to buy and trade digital collectibles of NBA moments.
Users will be able to purchase these crypto-collectibles as non-fungible tokens.
The popularity of these digital collectibles can be clearly seen through their demand. A Lebron James highlights recently sold for around $200,000.
These users are also happy to spend this amount due to the security around these digital collectibles. Since each collectible is tied to a blockchain, each NFT (or highlight) is given a unique and non-hackable certificate of authenticity.
Therefore, any remakes or copies of these highlights will be instantly deemed as fake.
People are aiming to acquire these highlights in hope that in thirty years time, a Lebron James NFT will be worth millions -similar to a 1952 Topps Mickey Mantle card that sold for $5.2million.
Tedman from Dapper Labs said:
“We think it could be a 100-year product. If you think about what the rookie cards today will be worth in the future, especially the ones from this point of the product. Everyone who is participating now is really getting in on the ground floor.”
The packs are extremely high in demand, with certain packs going for as low as $9.00 which are constantly being sold out and other high end packs also available. All packs are currently sold out but Top Shot has a number of pack drops planned soon.
Apart from the Lebron James dunk that went for $200,000, another James dunk sold for $125,000 while a Ja Morant "Holo MMXX" sold for $100,000.
Other notable cards and moments that were bought was a Zion Williamson block that sold for $100,000, the same players rookie card sold for $77,777 and Vince Carter's final career three pointer went for $64,990.
This highlights how certain career milestones will definitely carry a higher value than normal cards.
This new form of digital collectibles is set to take crypto-adoption to the next level. Dapper are already in talks with the UFC and other major sports leagues to adopt an NBA TopShot platform, but they will all be playing catch up to the NBA as they were the ones who took a chance at this new opportunity.
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