Brooklyn Nets player Spencer DINWIDDIE decided to turn his contract with the National Basketball Association (NBA) into a tokenized bond. Investors will be able to invest and earn interest based on the results of the basketball player performance, The Athletic reports.
According to sources, Dinwiddie is signing a three-year extension contract worth $ 34.36 million with Brooklyn Nets and decided to convert his NBA contract into a digital investment. In particular, the securitization of the contract with the NBA will allow him to receive a significant advance payment, which will allow him to issue tokens to investors, who will earn interest on this crypto asset.
Nevertheless, there are certain risks to these bonds. Since the Dinwiddy contract with the NBA is a guarantee that will be used to pay these people, and the termination of the contract with the club can create difficulties for paying investors.
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