Nets Player On Pace for Jan. 13 Tokenized Bond Launch

Nets Player On Pace for Jan. 13 Tokenized Bond Launch

Brooklyn Nets’ Spencer Dinwiddie carries out launch plans for tokenized security, expected by Jan. 13, in collaboration with Securitize

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Spencer Dinwiddie of the NBA’s Brooklyn Nets will launch his tokenized security offering on Jan. 13, in collaboration with digital securities company Securitize, after reportedly settling terms with the NBA.

“The Spencer Dinwiddie bond launches January 13th,” Dinwiddie said in a Jan. 10 tweet, adding, “I’ll also be taking 8 fans to ASW with me.”

Securitize also showed its support of Dinwiddie, with a Jan. 10 tweet from its CEO.

Carlos Domingo tweeted:

“At @securitize we are extremely excited and proud to be the digital transfer agent and technology partner for @SDinwiddie_25 and @DreamFanShares world’s first Professional Athlete Investment Security Token. Innovation takes courage, kudos.”

Months in the making

Dinwiddie first announced the launch of his new investment platform, DREAM Fan Shares, on Sept. 26, 2019, according to a press release.

“DREAM Fan Shares will be a portal for supporters and fans who want to invest in the potential success of athletes and stars,” the release explained, which includes releasing different Professional Athlete Investment Tokens (PAInTs).

Dinwiddie’s developed his token, SD8, under his company, SD8 LLC.

Essentially, Dinwiddie planned to sell his SD8 bond tokens on his DREAM platform in exchange for millions of dollars from his contract, worth $34 million in total, Forbes contributor Shlomo Sprung detailed in an October 2019 article.

Backlash from the NBA

The NBA, however, expressed notable concerns over Dinwiddie’s plans, which included a “player option,” leading to investor dividends based on specific circumstances, Sprung said in a Jan. 10 article. The NBA noted that the Nets player’s career might be at risk if he followed through with his plans, Dinwiddie told Sprung.

Dinwiddie was able to come to terms with the NBA, removing the player option and finalizing a Jan. 13 launch after months of delay, Sprung wrote, adding: 

“Dinwiddie is going to sell his securities-backed SD8 tokens, which can’t be traded for a year, for $150,000 apiece to verified accredited investors under SEC Regulation D, Rule 506 (c).”

Put simply, this format allows NBA players more flexibility for investing, taking advantage of the opportunity cost held within their contracts, the article explained.

Dinwiddie is also reportedly vying for a spot in the NBA all-star game, with player selection partially based on fan voting.

Although Dinwiddie’s tweet shows he is still moving forward with his bond launch, the NBA’s response reveals the league is still looking into how the tokenized operation applies to the league’s guidelines.

The NBA told Sprung on Jan. 9:

“Spencer Dinwiddie’s advisors provided us today with new information regarding a modified version of their digital token idea, which we are reviewing to determine whether the updated idea is permissible under league rules.”

According to the Forbes article, however, Dinwiddie’s contract with the league is not in jeopardy, based on comments from the NBA player.

Cointelegraph reached out to the NBA for clarification but received no comment as of press time. This article will be updated accordingly upon receipt of a response.

Cointelegraph covered Dinwiddie’s announcement last fall, as well as the backlash from the NBA that ensued.


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Brooklyn Nets’ Spencer Dinwiddie carries out launch plans for tokenized security, expected by Jan. 13, in collaboration with Securitize

US Fed Chair: Facebook’s Libra Carries Both Benefits and Risks

US Fed Chair: Facebook’s Libra Carries Both Benefits and Risks

Jerome Powell, the head of the United States Federal Reserve, has said that he recognizes both potential benefits and risks to Facebook’s recently-unveiled Libra project

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Jerome Powell, the head of the United States Federal Reserve, has said that he recognizes both potential benefits and risks to Facebook’s recently-unveiled Libra cryptocurrency project . Powell made his remarks during a press conference broadcast on PBS news hour on June 19.

During the conference, the Fed chair was asked whether he was concerned as to whether Facebook’s libra cryptocurrency could undermine the Fed and erode its power to influence the economy.

In response, Powell said he believed that society remains a long way from digital currencies replacing central bank currencies, and that the central bank was not too concerned about no longer being able to implement monetary policy because of them given the infancy of the digital asset class.

Powell confirmed that Facebook had reached out to discuss its project with the Fed, noting that the company has ostensibly:

“Made quite broad rounds around the world with regulators, supervisors and lots of people to discuss their plans and that certainly includes us. It’s something we’re looking at, we meet with a broad range of private sector firms all the time on financial technology and there’s just a tremendous amount of innovation going on out there.”

In addition, Powell said he believed there to be both potential benefits and risks particularly of a digital currency such as Facebook’s, which would have a prospectively large application.

He said he echoed the sentiments of Bank of England (BoE) governor Mark Carney in that he believes “we will wind up having quite high expectations from a safety and soundness and regulatory standpoint if they do decide to go forward with something.”

As to whether libra should come under any formal regulation as such, Powell clarified that:

“We don’t have plenary authority over cryptocurrencies as such. They play into our world through consumer protection and money laundering […]  but I would say that through international forums we have significant input into the payment system and […] play an important role in the payment system here in the United States.”

Government officials worldwide have expressed a range of opinions on Facebook’s new token, which could have potential exposure to a combined 2.7 billion users each month.

Soon after the libra white paper was published, the chairwoman of the U.S. Financial Services Committee requested that Facebook halt development of the project. U.S. Senate’s Banking Committee is set to hear testimony about the project on July 16.

French Minister of the Economy and Finance Bruno Le Maire has said that the government intends to “ask for guarantees” from Facebook in regard to Libra.

Cointelegraph has also reported that the Chairman of the Russian State Duma Committee on Financial Market Anatoly Aksakov said that the country would not legalize the use of the token.


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Jerome Powell, the head of the United States Federal Reserve, has said that he recognizes both potential benefits and risks to Facebook’s recently-unveiled Libra project