NFTs and the NBA

It’s been an energetic year for NFTs. Though the concept has existed since 2014, and Blockchain tech for much longer, we’ve seen an enormous spike in popularity over the last year and a growing list of successful applications in the commercial world – particularly in the example of ventures like the NBA’s new “Top Shot” NFTs.

A quick recap, for those unfamiliar:

NFTs create scarcity for items by defining an ‘original’ version of a digital asset and recording their purchase and ownership on a public and transparent blockchain ledger. This means that minting an NFT creates an individual, unique, and non-replicable certification of ownership for the buyer.

So - where are NFTS now?

Short answer? They’re where the internet was circa 1993 – and, like the young internet, NFTs remain on the fringe for most. Some are even hesitant to touch the space out of fear of a bubble.

This caution is overapplied. Many of the developments across the NFT marketplace have gone uncelebrated or dismissed as fads. This is natural, but those with a serious interest in the future of NFTs need to read beyond the headlines.

NFTs offer the chance to monetize cultural phenomena and generate real value from previously unharnessed forces. A technology with this amount of power is always going to create uncertainty, fear, and doubt. 

In the case of the NBA’s “Top Shot”, a marriage between classic sports trading cards and NFTs, the arrangement means players can take a measure of ownership over basketball through nominal ownership of ‘Top Shot Moments’. 

Put simply, they’re selling plays. And Basketball – a high-scoring game – means that there are a lot of plays to sell. 

What’s Next

In the first half of 2021, NFT sales jumped to over $2.5 billion. Marketplaces like OpenSea, as I noted in my last insight on NFTs, are hoovering up much of this, very nearly breaking $150 million worth of sales in March and June. 

Clearly, buyers are growing more convinced of the staying power of the NFT. A thriving NFT marketplace now means further confirmation that if stakeholders believe something has value, it does. 

Our prediction? A slew of new ideas, applications, and partnerships. Keep watch for more.

Francis Menassa is the CEO of JAR Capital. JAR Capital is the largest shareholder in BlockEx, an award-winning white label exchange platform for cryptocurrencies and NFTs.

Share article

Recent News

NFT Volumes Rise 8 Fold in 3rd Quarter

The market for non-fungible tokens exploded in the third quarter, as high-profile launches and a stream of innovation put the digital asset on the radar for investors who hadn’t even heard of an NFT a year ago.

Read More

2022: The year of stagflation?

The year 2022 could well mark an important paradigm shift for financial markets: the end of the idyllic scenario of inflation-free growth and the beginning of an era of stagflation. Stagnant growth coupled with galloping inflation? Investment management will have to be adapted accordingly…

Read More

The Wave: Promoting Accessibility in Surfing

Surfers are often portrayed as mavericks – almost stock characters – obsessed with the ‘perfect wave’, lithely hopping on their board to paddle out into the surf and drop in. 

But I think that this portrayal is outdated – and to be frank (which I am), it’s paddling against the undertow. 

Read More

NFTs and the NBA

It’s been an energetic year for NFTs. Though the concept has existed since 2014, and Blockchain tech for much longer, we’ve seen an enormous spike in popularity over the last year and a growing list of successful applications in the commercial world – particularly in the example of ventures like the NBA’s new “Top Shot” NFTs.

Read More