Brooklyn Nets guard Spencer Dinwiddie will soon become the first pro athlete to turn his contract into a digital investment vehicle when his company and token name, “$SD8,” go public for investors. The project will be backed by Dinwiddie’s three-year, $34.36 million contract extension and will bring him an upfront lump payment.
In a secured investment vehicle such as this one, the borrower gives up some future income in return for a smaller lump sum payment. But the borrower, in this case Dinwiddie, then has more money to immediately invest than he otherwise would. A token is a digital currency term. The bond exists in the digital currency world. Instead of buying the bond from a broker, it is through a token.
For Dinwiddie and his investors, the prime appreciation is designed to come during his player option season in 2021. Dinwiddie has a player option worth $12.3 million for the 2021-22 season. By opting out and earning more, it will, of course, create a…
