Spencer Dinwiddie, the National Basketball Association (NBA) player, has sold only 10% in his $34 million tokenized contract with the NBA.
It has been reported that the token sale concluded almost one year after he first announced his intention to issue security tokens representing fractionalized ownership in his NBA contract, with each ‘SD26 Professional Athlete Token’ representing a $150,000 stake in the contract.
However, the Brooklyn Nets guard aimed to sell 90 shares worth $13.5 million, but Form D regulatory filings submitted to the US Securities and Exchange Commission (SEC) reveals that only nine shares were issued in exchange for $1.35 million, a mere 10% of Dinwiddie’s target.
Etherscan data indicates that only eight investors participated in the offering and Dinwiddie has not acknowledged the sale’s conclusion on Twitter.
The report said that after announcing his intention to issue tokenized shares in his contract during September 2019, Dinwiddie faced stiff opposition from the NBA, which initially threatened the termination of Dinwiddie’s contract should he proceed with the sale.
Likewise, after a string of delays, the SEC filing indicates that Dinwiddie’s began selling the tokens from January 10.
In May, Dinwiddie also launched an unsuccessful crowdfunding campaign seeking to sell the contract for the cash equivalent of 2,635.8 Bitcoins (BTC), equating to $24.6 million at the time.
Thus, the saddened news is that Dinwiddie will not be participating in the upcoming NBA restart after testing positive for COVID-19 at the start of July.
Source: Cointelegraph | Image: Newsday
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