NBA blocks Spencer Dinwiddie’s attempt to tokenize contract

NBA point guard Spencer Dinwiddie’s heart was in the right place, but his efforts have fallen short. The Brooklyn Nets star had wanted to tokenize his league contract, worth $34.4 million, on a blockchain before the NBA stepped in and shot him down. The league asserts that Dinwiddie’s contract isn’t really his to tokenize.

The 26-year-old basketballer has found his tokenization efforts to be a league foul. According to the New York Times, the NBA said in a statement: 

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. [collective bargaining agreement], 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.’

Investors would have been able to bet and capitalize on Dinwiddie’s skills on the court as he tried for an even more lucrative contract following the second year of his current contract. He had hoped to raise $4.95 million to $13.5 million through the plan, which was developed through his own company, Dream Fan Shares. The tokenization effort would have had a minimum investment of $150,000 and Dinwiddie has indicated that he would have offered guaranteed interest of a few percentage points for the duration of the contract.

The NBA’s application of the regulation can only be viewed as a loose interpretation at best, since Dinwiddie wasn’t planning on transferring the right to receive compensation. Instead, he was offering to augment the opportunity the contract provides, which is new territory for the NBA.

Dinwiddie isn’t ready to give up and accept the NBA’s decision as final. He has stated that he hopes to meet with league officials to present his plan and show them how it works, adding, “What better way to be invested in a player as a fan than to have some level of skin in the game. […] With the way mine works, if I play well in that player option year and we split the profits up the first year of my new deal, it greatly appreciates the return on this investment vehicle.”

NBA star uses blockchain to sell digital tokens tied to Nets contract

Spencer Dinwiddie has turned to blockchain technology to tokenize his $34 million contract extension. The NBA star who plays for the Brooklyn Nets, intends on selling digital tokens tied to his contract, enabling him to raise cash up front. He’s yet to reveal how much of the contract amount he wishes to raise upfront.

The point guard signed his $34.36 million contract extension in December last year. However, instead of having to wait for his salary to be paid over the next three years, Dinwiddie intends on selling tokens to investors which will help him raise a lump sum of cash. The investors in his digital token will receive principal and interest, a report by The Athletic revealed.

Dinwiddie becomes the latest in the sports industry to turn to blockchain technology and cryptocurrencies. As CoinGeek reported, boxing champion Manny Pacquiao launched his cryptocurrency project which allows the fans to interact with him on social media platforms. The PAC tokens can also be used to take part in unique challenges by the boxing legend, bid for products such as signed gloves or bid for exclusive seats in his boxing matches. Interestingly, one of the investors in the PAC project was Michael Owen, a former Liverpool and England soccer star.

Argentinian soccer legend Lionel Messi also ventured into blockchain technology last year after he partnered with Sirin Labs, the company behind the Finney blockchain-powered smartphone. The Barcelona attacker serves as the brand ambassador for the Swiss-based company.

Yet another soccer star, Colombian attacker James Rodriguez launched his own crypto token last year. Dubbed the JR10 token, it was launched through SelfSell, a fundraising platform. According to a report by the Daily Mail, the token was so popular that its first batch sold out in its first 12 seconds.

And while many sports personalities have ventured into crypto, for some it hasn’t been as smooth sailing. Boxing champion Floyd Mayweather ended up paying over $600,000 in fines to the U.S. Securities and Exchange Commission (SEC) after being charged with illegally promoting Centra Tech, a fraudulent crypto project that scammed millions of dollars from its investors.

How blockchain is transforming business models

Click here to read in Korean.

Businesses are always in the search for the best business models in the market. Having an efficient business model that maximizes on profits and minimizes on cost can be the difference between market dominance and total annihilation for a business. Since its advent a decade ago, blockchain technology has continued to revolutionize business models globally. Blockchain-based software products, tokenization and peer-to-peer blockchain business platforms are just some of the ways in which blockchain is transforming business models.

Tokenization is one example of how blockchain is transforming business models. Tokenization is the creation of units of value, known as tokens, that enable a self-governing business model and allows users to interact with a company’s products. Tokens also facilitate the distribution of rewards and benefits to stakeholders.

Blockchain technology has enabled businesses to easily generate tokens. There are two types of tokens: utility tokens and security tokens. While utility tokens are coins that are backed up by a project, security tokens represent shares in a company. The tokens enable the business owner to generate capital from investors and also incentivize his clients to interact with his products and services.

Blockchain-based software products are yet another lucrative business model that has demonstrated how blockchain is transforming business models. Despite most businesses realizing the benefits of the technology, not all of them can afford to build blockchain applications. This has given rise to a high number of businesses that offer blockchain products and services.

Blockchain-as-a-Service has also emerged as a rapidly-expanding business model. As with any other technology, there are plenty of businesses which prefer to use it only for specific tasks. For these companies, it doesn’t make sense financially to incur all the setup expenses. They thus rely on companies that can provide blockchain platforms for a fee. IBM, Microsoft and Amazon have been some of the companies that have invested in this field.

While Bitcoin SV has established itself as the best enterprise blockchain, there are other development platforms that have sprung up. Other companies have also striven to provide businesses with development platforms which they can use to create their own customized decentralized applications.

Blockchain technology has also enabled scalable peer-to-peer business models. Businesses can develop blockchain applications that offer such services as file storage and music distribution while enjoying all the other benefits of blockchain technology such as tokenization. This increases efficiency, speed and security, all while keeping the costs low.

On October 1, global businesses will be in South Korea for the CoinGeek Seoul conference. Attendees will get to learn how they can maximize on the superior Bitcoin SV blockchain to build new business models and advance the ones in place. They’ll also get to interact with some of the brightest minds in the blockchain industry including the man who started it all, Dr. Craig S. Wright, better known as Satoshi Nakamoto. Don’t miss this once in a lifetime chance — buy your ticket today.

Get 20% off the CoinGeek Seoul conference tickets when buying with BSV, plus conference attendees can also take advantage of exclusive discount to the Le Meridien Seoul. Check out this link, select “Group code” at the Special Rates tab and simply type the promo code RE1RE1A to receive the hotel discount.

Dr. Craig Wright: Inclusion is the real purpose of tokenization

Dr. Craig Wright: Inclusion is the real purpose of tokenization

Created to solve real world needs, blockchain’s goal has been to bring equality and inclusion—and then consumerism came into the picture.

In his speech at the recently held TOKEN2049 event in Hong Kong, Dr. Craig Wright pointed out how HODLing became the new form of hoarding. According to the nChain chief scientist, a huge number of blockchain and cryptocurrency startups have been taking advantage of the hype and value spikes caused by HODLers.

“HODLing is probably the most despicable, evil thing to do with Bitcoin. It is not saving, it is hoarding. Bitcoin is a payment system. It is cash. It is to be used to help people spend money,” he said. “People can actually spend and use, not hoard so that in ten years, they can go, ‘look! I’ve got more of something than I can hold.’”

Contrary to what ICOs would have you believe, Wright said tokenization is supposed to be a medium through which the world can create an “on-demand economy,” essentially an Uber for everything that you need—even luxury items. Tokenization, he explained, should be used for the efficient, high-speed production of supplies made on demand with a traceable and verifiable supply chain on the blockchain.

“Everything that is common now used to be a luxury—toilets were a luxury 100 years ago. Victorian England—if you had a flush toilet, you were rich. Now no one would buy a house in the West without a toilet,” Wright said.

If done right, tokenization could herald a new revolution that would open the floodgates to inclusion and global interaction.

“This is a world that is becoming more and more global—that is a good thing,” Wright said. “As we start trading with people, we start building relationships and having to understand them.”

Watch Dr. Craig Wright’s speech at TOKEN2049 here:

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.
Over 50 teams sign up to put tokenization on Bitcoin BCH chain

Over 50 teams sign up to put tokenization on Bitcoin BCH chain

More than 50 teams are taking on CoinGeek.com’s tokenization challenge, which will shape the next evolution of the Bitcoin Cash (BCH) blockchain.

After demonstrating that the vision contained in the original Satoshi Nakamoto white paper can be realized on the network, the next step for Bitcoin Cash is to move from being a simple cryptocurrency solution and become the cornerstone of a globally distributed economy. Tokenization is one of the key elements for opening up the Bitcoin Cash chain to support a broader range of transactions than simply payments in the native cryptocurrency. Digital tokens, typically executed with smart contracts, allow real-world assets to be represented within a blockchain transaction.

To achieve this, CoinGeek.com—along with blockchain technology research and development firm nChain Group—recently announced a design contest for a tokenization solution that runs on the Bitcoin BCH blockchain as well as its associated test networks. The available prize is £5 million worth of Bitcoin Cash.

“While it is our firm belief that BCH is the one true blockchain that will emerge out of all the FUD around cryptocurrencies right now we want to also ensure BCH has all the tools necessary to make that claim and more. Tokenization is another step on that journey as we create a ‘best of breed’ coin that has all the components of the original Satoshi white paper but also has the additional features that enhance BCH further still,” said CoinGeek.com owner Calvin Ayre.

The challenge requires participants to design a generic system, or suite of interacting systems that deliver: an issuer solution that permits an entity to securely create tokens, issue tokens to user’s wallets, redeem tokens from users, and securely destroy tokens back into the originating cryptocurrency at the end of that token’s life cycle; a user solution that either plugs into their existing cryptocurrency wallet or sits alongside the wallet, allowing the user to view, trade and redeem their holding; and an audit solution that allows a third party to securely and independently validate the status of all issued tokens on the blockchain.

All submissions need to include supporting design documentations, as well as a working code with the source codes. The solution is not required to involve the execution of a smart contract on the blockchain, but participants must demonstrate real-world use cases—such as in gaming and casino, company stocks, and even tickets—that manage a token from issuance to final destruction.

CoinGeek will provide access and licenses to use certain assets from nChain Group’s patent portfolio. The assets are limited for use on the Bitcoin Cash blockchain and participants can only use them for their design proposals. The solutions will be evaluated on how well their solution meets the objectives as well as their effectiveness in using nChain’s intellectual property assets. Participants, however, are not limited or required to use nChain’s assets as CoinGeek encourages creativity and new ideas.

Learn more and register to CoinGeek.com’s tokenization contest here.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.

source: https://coingeek.com/50-teams-sign-put-tokenization-bitcoin-bch-chain/

Vinny Lingham at TOKEN2049: If cryptocurrency doesn't self-regulate

Vinny Lingham at TOKEN2049: If cryptocurrency doesn’t self-regulate, governments will

Vinny Lingham tackles dumb money and half-baked tokenization projects which are attracting government scrutiny and can possibly lead to stifling regulation.

Last week’s TOKEN2049 put the ICO frenzy into the spotlight: it seems everyone is launching an ICO. Whether each token has technical and economic merits may be debatable, but it’s quite plain for anyone to see that things are going out of hand.

Civic CEO Vinny Lingham spoke at the TOKEN2049 conference in Hong Kong last week, focusing particularly on governance in the blockchain sphere.  He added that if the cryptocurrency industry wants to retain as much of its freedom as possible, it would need to “self-regulate” and construct its own code of conduct. Otherwise, governments will step in and may impose stricter regulations than most would be comfortable with, which could potentially impede innovation.

“The crypto sector will need to begin self-regulating due to a number of incidents that have caused concern recently, otherwise governments will impose stricter regulations,” Lingham said, summarizing the point in his presentation by saying “industries that don’t self-regulate get regulated.”

“If you look at history, if industries that don’t self-regulate in the sense that the business leaders don’t come together and argue for a code of conduct and a code of practices that becomes uniform across the industry, regulators get involved,” Lingham said.

Citing recent events such as the rise of scams, Lingham says government concern is not unfounded. These days, there are more ICOs than people can imagine, and there’s a lot of “dumb money” pouring into the space as misinformed people jump into investments without knowing full well what the risks are. Many cannot distinguish between legitimate projects and outright scams, despite obvious signs. Some even invest despite barefaced admissions by the project founders themselves that they are indeed, running a scam.

“These people don’t know better so now regulators are stepping up and saying we must protect people. This industry as it is emerging has got a lot of bad actors in it,” said Lingham. “There are things we can do around that as well in order to prevent too much regulation.”

“Token economy design is an important part of what you’re doing. Don’t take the money here and then worry about how you can make it work later on,” he asserted.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.

source: https://coingeek.com/vinny-lingham-token2049-cryptocurrency-doesnt-self-regulate-governments-will/