The Age of Personal Cryptobonds: NBA Players, Ethereum, and Personal Bonds

Editor's Note: This article comes fromBlue Fox Notes (ID: lanhubiji), reprinted by Odaily with authorization.

Editor's Note: This article comes from

Blue Fox Notes (ID: lanhubiji)

Blue Fox Notes (ID: lanhubiji)

January 13, 2020 was a day to remember for the crypto world. On this day, NBA Nets player Spencer Dinwiddie (Spencer Dinwiddie) issued the first personal encrypted bond of a professional player in history. Dinwiddie's personal crypto bond contains many labels:

*First-ever personal bond from a professional player

*Personal bonds issued on the Ethereum blockchain

* Tokenized tradable personal bonds

(Dinwiddie expressed his expectation to issue personal encrypted bonds)

Specifically, Spencer Dinwiddie (Spencer Dinwiddie) issued 90 personal bond tokens through the STO platform called Securitize. The tokens were issued based on Ethereum, and each token was worth $150,000. About 40% of Spencer Dinwiddie's $34.4 million in contract revenue over the next three years.

Investors who buy Spencer Dinwiddie’s crypto bond tokens will not be able to trade the tokens for a year, meaning the tokens are locked for one year. As the income of personal bonds, investors can get 4.95% interest every month, and the principal will be repaid after maturity. The expiration is three years later.

Currently only qualified investors are allowed to participate, so the procedures are very complicated and AML/KYC verification is required.

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What "Dinwiddie Crypto Bonds" Mean for the Crypto World

This matter will have little direct impact on the market value of encrypted assets. The important point, though, is that it opens up new concepts.

First, it ushers in the era of personal crypto bonds.

If the "Dinwiddie Crypto Bond" case is successful in the future, it will lead to other professionals following suit, not only NBA players, but also tennis players, football players, singers, artists, etc.

Second, it broadens the usage scenarios of the public chain.

Professional players can issue personal bonds. This was difficult to achieve before. Now that there is a public chain infrastructure, the issuance of individual bonds based on Ethereum or other public chains (EOS, Harmony, Nervos, etc.) has become practically feasible. If the "Spencer Dinwiddie bond" is successful, it will enrich the usage scenarios of the public chain.

Finally, it broadens people's imagination.

Since individuals can issue bonds, will there be more derivatives based on individuals? If individuals can issue encrypted bonds based on future income, can other organizations, such as companies, also issue encrypted bonds based on future contractual income or other assets? Even if it is not possible for a while for regulatory and compliance reasons, it will open the floodgates for discussion.

Dinwiddie may be the most forward-thinking player in NBA history

Dinwiddie was the first to eat crabs. In order to realize the issuance of personal bonds, he and his advisory team negotiated with the NBA and made some concessions. At the beginning, he and the team also designed the token value to be linked to the third-year player option. If a higher-yielding contract can be obtained, investors will also benefit. But this design was denied by the NBA. If it can be agreed, it means that the token is linked to the future performance and income of the players. Of course, the risks and benefits have also increased year-on-year, but there will be more room for imagination and manipulation here.

Judging from the above design and operation, Dinwiddie looks more like an investment genius delayed by basketball. There are gossip that he invested in Bitcoin in 2017, and the purchase price was less than $4,000, and he benefited a lot.

Issuing personal bonds has many benefits for him. His contract income in the next three years is 34 million U.S. dollars. After the issuance of personal encrypted bonds this time, if he succeeds, he can immediately cash out 15 million U.S. dollars in cash. And as a senior bitcoin investor, will he invest some of it in bitcoin? If he allocates part of it to Bitcoin, if the appreciation of Bitcoin in the next three years far exceeds the monthly interest it pays, is this considered a good financial and investment operation? For professional NBA players, this kind of forward-looking investment vision is rare. In this regard, he may be the most forward-looking investment brain in NBA history.

Dinwiddie’s Crypto Bonds Are Attractive to Investors

Dinwiddie's personal encrypted bonds are only open to qualified investors, but not to ordinary individual investors for the time being. This is also related to compliance and supervision, so its impact will be limited to a certain extent. Still, there will be interest from investors. The reasons are as follows:

• Dinwiddie's personal bonds are based on tokens issued by Ethereum, which can be traded on exchanges. Although there is a one-year lock-up period, they can be traded at any time after one year, and can obtain a premium for the transaction.