Since NBA Top Shot launched back in October of 2020, it has done over $250 million in transactions.
Nearly 90% of that $250 million was done in the last 30 days. NBA Top Shot has rapidly become one of the most popular digital assets.
What is NBA Top Shot, exactly?
Top Shot is an online-only marketplace where you can buy, sell, or trade your favorite NBA highlights. Each highlight is referred to as a moment. Each moment is owned by a user through a unique serial number.
They are the new era of sports cards. Rather than a physical card with statistics on the back, you now have a video highlight of a Luka Doncic step-back 3-pointer or a Giannis Antetokounmpo monster slam.
So let me understand this…People are buying Twitter/YouTube highlights?
The short answer is, kind of, yes. These highlights or moments are certainly available online or on TV. Although these moments are considered collectible digital art or CryptoArt. Like art, the value of the moment is whatever somebody is willing to pay for it.
How does the Marketplace work?
NBA Top Shot uses Blockchain, the popular technology behind cryptocurrencies like Bitcoin and Ethereum.
But wait, what is Blockchain?
Blockchain is a data structure that stores transactional records. Each transaction, or block, is linked together to form a decentralized and secure digital ledger. Non-fungible tokens, or NFTs, exist on the blockchain. No two NFTs are the same and they cannot be divided or multiplied. Every moment on Top Shot is an NFT.
How much are we talkin’ for a Top Shot moment?
A LeBron James moment just sold for $208,000 a few weeks ago, however, not all moments sell at that astonishing number. The price of moments varies based on several factors.
The first factor is the player. A Marcus Smart fadeaway 3-pointer is probably going to sell less on the Marketplace than a fadeaway 3-pointer by Steph Curry.
The second factor is the rarity of the moment. Just like sports cards, there are a fixed number of moments and Top Shot controls how many to release. Naturally, serial number 1 is more valuable than serial number 2,000. Also like sports cards, there are different sets across the marketplace that create variation in value.
The third factor is the specific moment itself. This is important to understand when deciding between moments of the same player or moments that are similar in rarity or serial number. For example, an off-the-backboard dunk from Ja Morant is going to be more valuable than a Morant layup.
Ok, I’m in. Now how do I buy a moment?
You can purchase moments from other users on the Marketplace or await the highly anticipated pack drops. Each pack drop is announced by Top Shot and is an opportunity to get moments significantly below market value.
Users can pay not only through various cryptocurrencies like Bitcoin, Ethereum, and Bitcoin Cash but also with credit or debit cards, making it easy for anyone to get involved.
Alright, how do I know this legit and I don’t instantly lose my money?
NBA Top Shot is officially licensed by the NBA. The NBA partnered with Dapper Labs to develop NBA Top Shot.
Top Shot generates money through transaction fees and pack sales. Dapper Labs takes a 5 percent transaction fee on sales across the Marketplace. While also the NBA and NBPA get a percentage of peer-to-peer sales across the Marketplace.
Notable players, businessmen, and celebrities all in recent weeks have expressed their interest and excitement of what can come of NBA Top Shot.
Is NBA Top Shot the Future?
I guess there is really only one way to find out…