What are NBA NFTs?
NFTs, or “Non-Fungible Tokens,” have been the focus of attention in the fields of sport, investing, and blockchain in the year 2021. The NBA Top Shot, a new type of licensed digital collectible from the NBA, has been a trigger for this growth in popularity. During the previous NBA season, more than $230 million was spent on Top Shot NFTs, with the most expensive highlight of LeBron James fetching over $200,000. Because of the massive infusion of capital and the speculative nature of these assets, it’s critical to understand the legal rights and liabilities that come with what the NBA sells and, more significantly, what purchasers buy with these NFTs.
NBA’s dynamic Ethereum
On Wednesday, the National Basketball Association will begin minting The Association, an Ethereum NFT collection of 18,000 assets. NFTs are one-of-a-kind blockchain tokens that show who owns an asset, such as a piece of digital art. In this year’s NBA playoffs, each Association NFT represents a genuine NBA player. There will be 75 NFTs of each player from each of the 16 NBA clubs in attendance
These NFTs, like real athletes, do not remain static. NFT attributes will alter throughout the playoffs based on each player’s real-life performance, such as a particular number of dunks, blocks, three-pointers, rebounds, or assists. The players’ teams’ performances will also affect the NFT backdrops and “frames.”
Limit on NBA NFTs
Notably, NBA fans will not be overcharged for the NFTs. According to the company’s website, the NFTs will be free to mint, but collectors will have to pay for the cost of gas on Ethereum. However, the NBA is reserving some assets for holders of NBA Top Shot NFTs, with each wallet receiving a maximum of one. The NFT art will be revealed on Friday, following the start of presale minting, and will be available on NFT marketplaces such as OpenSea.
The announcement comes just a few days after the NBA opened a Discord server (with nearly 50,000 users) and a new Twitter account dedicated to anything “NBA x NFT.” Some speculated that the NBA had filed a trademark application for “The Association” branding earlier this month, which sparked speculation.
While the overall NFT industry is declining, interest in sports NFTs has remained strong. Swoops, the NFT basketball game backed by Gary Vaynerchuk, announced a $3.5 million investment round last week to help grow out its fantasy sports title on Polygon.