Connect with us

Security Token News

NBA Point Guard, Spencer Dinwiddie, to Tokenize Contract

mm

Published

 on

NBA Point Guard, Spencer Dinwiddie, to Tokenize Contract

Tokenizing Contracts

It was recently announced that Spencer Dinwiddie, a 26yr old point guard with the Brooklyn Nets, intends to tokenize his next NBA contract.

This contract is expected to come in at roughly $34 million over 3 years. Through the tokenization process, digital securities will be sold, allowing for Dinwiddie to receive the majority of his contract up front, in a lump sum – rather than need to wait 3 years for it to be paid out.

For their participation, investors will be rewarded with guaranteed returns over the 3 years, not only as their principle is repaid, but with interest being paid as well. It is expected that these dividends will be paid out as the money would be normally released by the Brooklyn Nets.

While exact details of the event have yet to be released, this distribution of digital securities could represent up to the entirety of his $34 million contract. In reality, the number to be raised will most likely be much less than $34 million in an effort to mitigate risk in a first of its kind sale.

Why?

The reasoning for this move is a simple one – money today is worth more than money tomorrow. This concept assumes that given a set amount of money today, it can be put to work through actively investing it. Ideally, by the time money would have been paid out in the future, these investments will have grown the money larger than it ever would have been, with less time to grow, and subjected to inflation.

While the potential to increase one’s holdings is definitely there, the entire scenario rests on the assumption that the investor is competent and grows the funds, rather than diminishes them.

KaWhi Wait?

Earlier this year, the Toronto Raptors, of the NBA, successfully completed their ascent through the league, as they took home the Larry O’Brian trophy. A large factor in what made this possible, was addition of NBA stalwart, Kawhi Leonard to the ranks.

During this championship run, a Toronto company pitched the same idea being undertaken by Dinwiddie. Blockstation, a young company within the digital securities sector, planned to host a DSO, linked to a contract extension for Leonard.

While the idea never came to fruition, as Leonard opted to sign with the LA Clippers, the idea was a unique one with the potential for success. We’ll now see, through Dinwiddie, if there is any merit to the proposed benefits of tokenizing a sporting contract.

Blockstation to Host DSO in Attempt to Lure Kawhi Leonard

All Eyes on Dinwiddie

In any industry, participants are always striving to make more money. Professional sports are no exception. However, despite the vast sums of money made by man professional athletes, the surprising and unfortunate reality is that most NBA players find themselves bankrupt within a few short years after retiring.

The reason for this is not entirely clear, however it is a positive, encouraging sign, to see players such as Dinwiddie take an active role in their financial future.

While this endeavour may not pan out, it is important to remember the old and simple adage – ‘nothing ventured, nothing gained’.

Sporting Adoption

Possibly more than any other professional league, the NBA has shown an affinity for blockchain based endeavours. This affinity spans from, not only the players, but to the teams, and the league itself.

While the NBA may lead the way, various other leagues have dipped their toes in blockchain waters over the past year, as well. Beyond the tokenizing of contracts by players discussed here today, the following article touches on a few examples of this.

Blockchain in Sports

In Other News

Not every foray into crypto by athletes has gone according to plan, or ended on a positive note. Months ago, we reported on a case of illegally promoted security tokens by boxing great, Floyd Mayweather. In this instance, the SEC took an interest, and eventually settled with the offenders.

SEC Settles with Floyd Mayweather and DJ Kahlid after Promotion of ‘Security Tokens’

Spread the love

Joshua Stoner is a multi-faceted working professional. He has a great interest in the revolutionary 'blockchain' technology. In addition to this, he is a licenced Paramedic in Nova Scotia, Canada. As such, he can provide emergency care/medicine to any situation necessitating it.

Security Token News

VeVue Signs Partnerswith CBX for Token Launch

mm

Published

on

VeVue Partners with CBX Exchange for STO

The blockchain-based social media platform, VeVue announced plans to host an STO in the coming weeks. The company intends to expand the platform’s capabilities with the funds raised. Now content creators have a more lucrative alternative to consider moving forward.

News of the company’s intentions first broke via an October 14 press release. In the post, the company announces its new strategy and partnership. As part of the firm’s new crowdfunding approach, VeVue partnered with the hugely popular CBX exchange.

CBX Exchange

For its part, CBX will be responsible for the sales, token issuance, and distribution of the VUE token. CBX is one of the largest crypto exchanges based in the Middle East. The firm operates a fully compliant EU exchange. Developers integrated both AML and KYC protocols directly into its trading platform.

VeVue via Homepage

VeVue via Homepage

CBX recently launched a campaign with Alibaba competitor GoJoyin in which the platform secured over $10 million in funding. The experience gained in this campaign will be critical for VeVue STO’s success.

VUE STO

The VeVue STO will commence on October 28, 2019, at 4 pm PST. Interestingly, the event is scheduled to only last 48 hours. CBX intends to issue 5 million VUE tokens to qualified non-US investors. Vevue also announced that there will only be 100 million VUE tokens in total available to investors. Of these tokens, 35 million are reserved for investor purchases.

Vevue and CBX Unique Strategy

CBX and Vevue have a unique strategy for their crowdfunding efforts. The company intends to host an STO monthly moving forward. Additionally, these auctions will be Dutch-style. Basically, the official token price is set after taking in all bids.

Highest-Price VeVue STO

This strategy enables the firm to receive the highest price for the total offering. For example, investors place their bids which include the price and quantity they desire. The firm will then accept the top 5 million bids for the tokens.

VUE Token Benefits

VUE token holders receive a portion of gross revenue collected via the VeVue social media app. Consequently, investors actively earn from VeVue’s ecosystem. The App provides content creators with a revenue-generating outlet. Here, users can create and monetize content such as videos easily.

VeVue Transaction Fees

Vevue charges a 5% transaction fee on the monetized content. This fee then enters into the dividend pool from which STO investors receive payments daily. Importantly, dividends are paid in VUE tokens. This unique strategy encourages users to create high-quality content to earn more tokens.

Next Level Social Media

Traditional social media doesn’t allow users the opportunity to earn from their content contributions.  In fact, the current social media giants provide content creators with zero payment for their efforts.

Social Media Heat

VeVue’s timing is impeccable as social media giants such as Facebook continue to confront lawmakers over a myriad of concerns. Facebook, in particular, appears to be in the target of regulators after announcing plans to issue its own native cryptocurrency called the Libra.

A Better Social Media Alternative

VeVue appears to have unlocked a better way to social media for everyone. Providing users with an opportunity to earn tokens for their content is a smart concept that has proved to be a great alternative in the past. You can expect to hear more from VeVue in the coming weeks as its STOs hit the market.

Spread the love
Continue Reading

Security Token News

CFTC Labels Ether a Commodity

mm

Published

on

Ether is a Commodity

The crypto community got some exciting news this week after the Commodity Futures Trading Commission (CFTC) Chairman stated that Ether (ETH) is a commodity. The news follows similarly worded statements from SEC officials in the past.

The news came via an Oct 10 statement from acting CFTC Chairman Heath Tarbert. In the post, the Chairman announced that he believes Ether is not a security at this time. The news comes at a critical point in Ethereum’s development.

The news is a huge win for the Ethereum community. Currently, Ethereum is the second-largest cryptocurrency in the world by market cap ($20 billion). The ruling is important because it means Ether falls under CFTC regulations and not SEC securities regulations. Consequently, the decision allows financial institutions to offer a wide array of new products and open up entirely new markets moving forward.

Ether Futures and Derivatives

In the past analysts pointed out that the Ether derivatives market suffered due to the lack of transparency. Tarbert now says that you can expect to see both Ether futures and derivatives markets in the very near future. Surprisingly, he stated that these financial tools would hit the market in less than a year.

Ether Creator Vitalik Buterin via Medium

Ether Creator Vitalik Buterin via Medium

Transformative Token

According to the Chairman, Ether is a case of a transformative token. Basically, the token started as a security during the ICO event. At that time the enterprise was playing a controlling role over the digital asset. As time progressed, the Ethereum enterprise faded to the background as the cryptocurrency decentralized. Now the token serves as a utility.

Reverse Securities

Additionally, Tarbert described the reverse scenario in which a utility token slowly develops into a security. In this situation, you start off with a fully decentralized organization. Over time, the enterprise steps back in to take more control. Consequently, this creates a scenario where investors seek profits from the efforts of others. Now the token is a security.

Notably, SEC officials stated that they do not consider Ether a security in its current state. However, both the SEC and CFTC did point out that during the company’s ICO, Ether acted as a security. Luckily the SEC declined to fine the Ethereum development team for its ICO.

Bitcoin is a Commodity

Falling along this line of thought, Tarbert explained that Bitcoin is also a commodity. This statement coincides with the SEC’s decision to decline to label Bitcoin as a security. Analysts consider these actions as a precursor to this week’s news.

PoW to PoS

Also, Ethereum developers announced a shift from the Proof-of-Work (PoW) consensus algorithm to a more energy-efficient alternative, a Proof-of-Stake (PoS) consensus mechanism. PoS systems don’t require your PC to do heavy computations. Instead, users earn rewards for “staking” tokens in their wallets. In this manner, PoS tokens use far fewer resources.

Ether Moving Forward

The Ethereum community has much to celebrate moving forward. The cryptocurrency continues to see development across the entire sector. You can expect to see the Ethereum community expand as more ETH-based products enter the market in the coming months.

Spread the love
Continue Reading

Security Token News

SEC Seeks Input on ‘Boston Securities Token Exchange (BSTX)’ Proposal

mm

Published

on

SEC Seeks Input on 'Boston Securities Token Exchange (BSTX)' Proposal

Launching Markets – BSTX

The Boston Securities and Token Exchange (BSTX) has recently filed a proposal for various rule changes with the SEC. These changes would allow for BSTX to launch what would be the market’s first digital exchange supporting full-fledged digital securities.

Joint Filing

The Boston Securities and Token Exchange is a by-product of a partnership between tZERO and BOX Digital. This pairing of companies launched the joint venture in mid-2018, with the intent to develop the first fully regulated digital exchange in the U.S.

BSTX is expected to utilize blockchain technology provided by tZERO, while BOX representatives work towards establishing regulatory clearance. With each providing different areas of expertise to BSTX, both tZERO and BOX have made it clear that this is a joint venture, with each having a 50% say.

Rule Change

The proposed rule change discussed here dates back to late June, 2019. At the time of the filing, it was viewed as having the potential to create a ‘rulebook’ for the operation of such exchanges in the United States. Only now, months later, is the SEC making the filing available for public commentary.

A few of the noteworthy attributes of their proposed exchange are as follows:

  • Asset ownership recorded using a private blockchain
  • Trading enabled through use of BSTX tokens
  • Whitelisted clients

At the initial time of its filing, we took a brief look at BSTX and their plans, including the use of an in-house token developed by the exchange.

Boston Security Token Exchange (BTSX) Seeks SEC Rule Change

Commentary

In their filing, made public by the SEC, the BSTX begins by outlining their plans and intentions for the proposed exchange.

“BSTX would operate a fully automated, price/time priority execution system for the trading of “security tokens,” which would be equity securities that meet BSTX listing standards and for which ancillary records of ownership would be able to be created and maintained using distributed ledger (or “blockchain”) technology.”

Boston Securities and Token Exchange (BSTX)

Operating within the United States, BSTX is a proposed digital securities exchange, which was founded in 2018. The company looks to become the first exchange of its kind, supporting full-fledged digital securities.

CEO, Lisa Fall, currently oversees company operations.

In Other News

Whether it be through the backing of others, or through their own endeavours, tZERO remains hard at work, establishing the digital securities sector.

We were recently fortunate enough to have interviewed tZERO CEO, Saum Noursaheli. In this exclusive interview we discuss past and future events pertaining to the company. Make sure to check out the following interview to learn more!

Interview Series – Saum Noursaheli, CEO of tZERO

Spread the love
Continue Reading