What is NBA Top Shot and why do I keep reading about people profiting from it? What’s an NFT? And what does this all have to do with blockchain?!?!
In the last week, I started with the first question which made me go down an Alice in Wonderland rabbit hole of learning. I’ve noticed that sports cards are making a resurgence recently, however this NBA Top Shot was a new phenomenon to me. As always, there are business lessons to be taken from the newest craze.
What is NBA Top Shot? The easiest way to describe this would be that they are unique digital cards made up of NBA highlights that have a scarcity. Essentially , it’s a collectible video, so whether it’s Fred Van Vleet dropping a three or a black from Bam Abebayo, there is a set amount of the highlight available for acquisition. The highlight can be acquired randomly by purchasing packs or by purchasing a specific moment from another user in the Marketplace
.
The scarcity of these moment has led to incredible re-sell opportunities for collectors, the lowest priced moment for sales is listed at $17 USD at the time of writing this and a LeBron James Top Shot was sold for over $200,000 USD in February. Over the weekend, there was a new release of just over 11,000 packs and 200,000 people were queued online trying to purchase them at $99 a pack.
But wait? Can’t I just watch these moments elsewhere online? Yes, you can, but the interest is in the collection of these moments. Much like Sports Cards, Pokemon Go or the Gamestop stock phenomenon – the ability to “display” your collection to friends along with the potential of profit is driving collectors to the web site. In the past month, the sales on the platform have topped $200 million USD.
What does this all have to do with blockchain? Well Top Shot is an NFT – a non-fungible token that is purely digital and is blockchain based. The NFT is unique or rate digital content that can be created using the Ehtereum ecosystem. An NFT can begin as many different types of media – digital art, music, virtual real estate, gaming assets and more that are minted to give them a uniqueness. They can then be sold and traded.
The Top Shot phenomenon is catching investors’ attention and will lead to increased supply of NFTs from different industries. The potential is limitless, imagine a unique performance of your favourite song by your favourite artist or like the WuTang album purchase a few years ago, your own unique song by your favourite artist. With the increased attention to cryptocurrency that came from Bitcoin surpassing $50,000 USD and the Top Shot craziness of February, you will hear the initials NFT a lot in 2021…
I’m no expert – so I’m definitely ordering this book to keep exploring, but there’s definitely business opportunities relating to NFTs.
Dan Julien's Musings 