Investors can now get a piece of their favourite NBA star’s contracts or basically invest in their favourite Athletes, thanks to NBA guard Spencer Dinwiddie who’s looking to raise $13.5 million by tokenizing the first year of his three-year contract of $34.5 million. This is powered by another one of Dinwiddie’s ventures dubbed DREAM Fan Shares, a platform where investors can purchase a new type of debt security called the professional athlete investment token (PAInT). The very first token that will be available will be Dinwiddie’s very own called the SD8 token, derived from the athlete’s name and number in the team.

For accredited investors only

The tokens will have a minimum buy-in price for $150,000 for accredited investors only. Investors whose net worth is at least $1 million or they have an income of at least $200,000 in the last two years can invest in the SD8 tokens. The token holders will be entitled to regular principal and interest payments which will be backed by Dinwiddie’s NBA contract with the Brooklyn Nets.

In an interview with Coindesk, Dinwiddie explained that his contract is guaranteed. This means that investors don’t risk losing their funds if the athlete is unable to play due to injury or other causes. For this year he is set to earn $16 million and he will be trading $2.5 million of his earnings to get an upfront payment.

Powered by Paxos, Built on Ethereum

The token will be built on the Ethereum platform and Paxos Trust Company will be in charge of the escrow and custodial services and token holders will be incentivized by its dollar backed stablecoin, the Paxos standard (PAX). Dinwiddie has already put $2 million into public reserves with $1 million each in Bitcoin (BTC) and Gold.

Why PAInTs ?

As per the Dinwiddie, this new platform is built to help athletes and other individuals in the entertainment industry to make better use of their earnings. He thinks this will help athletes be more financially responsible and prevent them from going bankrupt, which is a common fate for many professionals after they retire.

Also since the tokens won’t be entangled with the general financial system, they’ll be recession resistant. The athlete further explained:

“Unless the NBA goes out of business in three years, ain’t nothing happening to y’all. Now, how much you make depends on how I play. I want to make a bunch of money too, so don’t worry about that. As long as I don’t do anything really, really crazy off the court, everything’s going to be fine, contractually.”

If the project succeeds, Dinwiddie visualizes a platform where an investor would be able to trade his token for other players like Lebron James and Kevin Durant whose contracts are more profitable.

The token sale will begin on October 14, 2019, with a maximum of 90 tokens in offering worth $13,500,000. Payments will be accepted in Bitcoin, Ethereum and US dollars.

