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The N.B.A. on Friday notified the Nets’ Spencer Dinwiddie that he cannot use his contract as a digital investment vehicle, according to a league official.

Dinwiddie had announced earlier this week to The Athletic that he planned to go public with an “$SD8” token offered by his company DREAM Fan Shares that would enable investors to essentially buy into Dinwiddie’s three-year, $34.4 million N.B.A. contract.

By selling shares in his contract, Dinwiddie would have allowed investors to bet on whether he would be able to play well enough to earn an even more lucrative contract after the second year of his deal.

The N.B.A. issued the following statement to The New York Times on Friday: “According to recent reports, Spencer Dinwiddie intends to sell investors a ‘tokenized security’ that will be backed by his player contract. 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.’”