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Federal Judge Rules NBA Top Shot NFTs May Be Considered Unregistered Securities

Federal Judge Rules NBA Top Shot NFTs May Be Considered Unregistered SecuritiesA federal judge, Victor Marrero, ruled on Wednesday that the NBA Top Shot non-fungible tokens (NFTs) issued by Dapper Labs may meet the requirements to be considered an unregistered security. The case arose in 2021 when an NBA Top Shot collector sued Dapper Labs, claiming that the NBA Top Shot NFTs, known as “Moments” issued […]

Blockchain gaining adoption in more than just DeFi: Report

A beginner’s guide to NBA Top Shot NFTs

The collective sales volume of NBA Top Shot NFTs has dropped 99% from its February 2021 peak.

NBA Top Shot is a nonfungible token (NFT) marketplace that enables basketball fans to buy, sell and trade NBA-themed digital collectibles.

These collectibles are "Moments" — NFTs of NBA video clips and digital art — available per their degree of rarity. In other words, users can trade NFTs that feature anything from a winning three-pointe from Luka Dončić to a dunk from Lebron James, depending on their availability.

A NBA Top Shot Moment listing example. Source: Official Website

The concept is akin to traditional sports collectible where fans attempt to acquire the rarest of items associated with teams, with an aim to either collect or sell it later at a higher price. Except, in the case of NFTs, these collectibles are digital — unique cryptographic tokens that exist on a blockchain and theoretically cannot be replicated.

How does NBA Top Shot work?

NBA Top Shot is officially licensed by the NBA, the NBA Players Association, and Dapper Labs. The marketplace runs on the FLOW blockchain, which Dapper Labs built as a developer-friendly ledger to support "the next generation of games, apps, and digital assets."

As explained above, the NBA Top Shot platform functions like trading cards. It starts with the NBA licensing its reels and digital art to Dapper Labs. In turn, Dapper Labs uses the footage to create Moments as NFTs.

Each Moment has a unique serial number attached to it, which guarantees its authenticity and shows its rarity. In addition, the Dapper Labs team creates only a limited number of NFTs to ensure scarcity. As a result, the commonly available Moments are cheaper in valuation than the rarer ones. The NBA Top Shot website explains that: 

An NFT is a one-of-a-kind, non-fungible, cryptographic token representing a unique digital asset for which there is no copy or substitute. An NFT cannot be substituted for another NFT as each NFT is distinctive and unique in some way. An NFT is not a medium of exchange and is not convertible virtual currency.
Each moment is secured by the blockchain, meaning your Moment is Unique and Licensed by the NBA and NBPA.

Moments come as a part of "Packs," similar to how traditional sports cards come in a bundle. In turn, packs are a part of the so-called "Series," which gets launched concurrently with the NBA season. So, fans can collect new packs of NFT moments that feature the season's best highlights.

In addition, fans can collect Moments from the past depending on their availability. For example, they can get Magic Johnson's dunk from May 16, 1980.

NBA Packs and Moments

Collecting NBA Top Shot Moments is not a straightforward task. Typically, users do not know what Moments they will receive when they go ahead with a purchase, given the availability of each NFT depends on the the kind of set or Pack it comes from.

NBA Top Shot features four types of Moments: Common, Fandom, Rare, and Legendary. There is also a fifth category, called Ultimate, but this Moment is attainable only via auction. Anyway, here's how the other four categories work:

  • Legendary Moments: comprise 0.09% of the total available Moments, which makes them extremely rare and tough to acquire. Naturally, Legendary Moments are more expensive than most of their counterparts. 
  • Rare Moments: comprise 1.6% of the total Moments and typically feature historical plays from NBA legends.
  • Fandom Moments: availability is not fixed since Dapper Labs create them based on special experiences associated with specific events. For instance, the firm can make Moments available in real time to only those users who were available in the arena.
  • Common Moments: comprise 95.8% of the total Moments, meaning they are easily available and cheaper than other categorie.
NBA's Moments categorized based on their rarity. Source: Official Website

Dapper Labs groups the top shot Moments into Packs and presents them as Sets. These Sets come in two distinctive categories: Base and Non-Base. Here's how they work:

  • Base Sets: These packs fall in Common rarity category and are released in order of Series and release, i.e., Series 1 had 12 releases. They contain three basic Moments and are ideal for users who are just starting their NBA Top Shot collection.
  • Non-Base Sets: Unlike Base Sets, Non-Base Sets come in variations and contain at least one Common Moment in addition to a Rare or Legendary Moment. That makes the sets costlier.
Illustration of NBA Top Shot Sets. Source: Official Website

NBA Top Shot Challenges and Quests

Challenges and Quests serve as a parallel avenue from where NBA Top Shot users can receive Moments, but as rewards not sales.

Related: DeFi, NFT, blockchain games: Key takeaways from DappRadar’s 2022 review

For instance, Challenges grant rewards to users who fulfil a given task in a specific timeframe. In detail, NBA Top Shot can launch a challenge with directives to collect a particular number of Moments in specific hours or days. Users who complete the challenge receive a freshly minted Moment.

Similarly, Quests offer rewards to users for finishing tasks, except the tasks are like scavenger hunts, wherein users are told to locate and build an exhibit for Moments with certain characteristics. As a result, Quests appear to be more difficult than Challenges and, therefore, return greater rewards.

A word of caution

The demand for NBA Top Shot exploded in 2021 with its sales volume reaching a pick around $224 million in sales volume from over 80,820 unique buyers in February. By November 2022, the sales volume had declined to about $2 million from some 10,000 unique buyers.

NBA Top Shot sales volume throughout the history. Source: CryptoSlam

The crash in demand came in line with similar drops across the NFT space with many leading projects, including Bored Ape Yacht Club and CryptoPunks, witnessing lower demand. As a result, some analysts rubbished the NFT market altogether, calling it a bubble.

As a result, venturing into NBA Top Shot space to speculate on its Moments remains a risky proposition and potential collectors should never invest more money than they can afford to lose. 

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Blockchain gaining adoption in more than just DeFi: Report

Dappradar Report Shows Blockchain Gaming Thrived Amid FTX Collapse, Sector Accounted for 46% of All Network Activity

Dappradar Report Shows Blockchain Gaming Thrived Amid FTX Collapse, Sector Accounted for 46% of All Network ActivityAccording to a report published by the global dapp store platform, Dappradar, blockchain gaming hardly felt the impact of the recent FTX collapse and the crypto market carnage that ensued. Dappradar’s Blockchain Games Report indicates that the number of daily unique active wallets (dUAW) participating in blockchain gaming dropped slightly to 800,875 UAWs in November, […]

Blockchain gaining adoption in more than just DeFi: Report

Toy Manufacturer Mattel and Cryptoys Announce Masters of the Universe NFT Collection

Toy Manufacturer Mattel and Cryptoys Announce Masters of the Universe NFT CollectionThis week, in celebration of the 40th anniversary of the Masters of the Universe (MOTU) franchise, the toy manufacturing company Mattel announced the launch of the official MOTU digital toy collection. The new collection, dropping on November 9, will feature classic MOTU characters like He-Man, Battle Cat, Tri-Klops, and Evil-Lyn. He-Man and the Masters of […]

Blockchain gaining adoption in more than just DeFi: Report

Dapper Labs suspends Russian accounts after new EU sanctions

The firm outlined that as its “payment processing and stored value service partner is subject to EU regulations,” Dapper has been directed to impose the restrictions on these accounts under EU law.

Flow blockchain developers Dapper Labs has suspended Russian accounts after the European Union (EU) imposed new sanctions against Russia and its nationals.

Announced on Oct. 6, the latest set of EU sanctions on Russia stipulates a full ban on the provision of crypto-asset wallets, accounts and custody services, regardless of the total value of the assets.

Following the sanction announcement, Dapper stated that accounts with connections to Russia will no longer be able to sell, purchase or gift nonfungible tokens (NFTs), withdraw funds from their accounts or add to their balances, stating:

“It is now prohibited to provide crypto-asset wallet, account, or custody services of any value to accounts with connections to Russia, irrespective of the amount of the wallet.”

The firm outlined that as its “payment processing and stored value service partner is subject to EU regulations,” Dapper has been directed to impose the restrictions on these accounts under EU law.

“However, Dapper has not closed the accounts. Users impacted by these actions can continue to access and view their NFTs. Additionally, regardless of this new regulation, any NFT previously purchased by an impacted user continues to belong to that user,” the firm stated.

The sanctions on Russia include a complete ban on cross-border crypto payments between Russians and the EU, which also results in the prohibition of “all crypto-asset wallets, accounts, or custody services, irrespective of the amount of the wallet.”

With Dapper following orders to bar access to Russians, it marks another occasion in which a crypto-related company has had to yield to regulatory pressure to avoid compliance issues, much like the Tornado Cash crypto mixer debacle from August.

On Twitter, user @XBT002 criticized Dapper over the move, as they argued that it works against the censorship-resistant notion of blockchain tech:

“If you’re freezing ‘accounts,’ you’re actively censoring in an industry that was founded around censorship resistance.”

In response, @EIDumboTS, who claims to be a Dapper employee, reiterated that the firm was “directed” to take this action on the Russian accounts and therefore had its hands tied in this situation.

Dapper is a centralized firm headquartered in Vancouver, Canada with a reported valuation of $7.6 billion. Alongside the Flow blockchain, Dapper has launched a host of popular NFT projects including NBA Top Shot, NFL All Day and Crypto Kitties. The company is gearing up to launch

Blockchain gaining adoption in more than just DeFi: Report

Ticketmaster Announces Collaboration With Dapper Labs To Mint Event Tickets As NFTs on Flow Blockchain

Ticketmaster Announces Collaboration With Dapper Labs To Mint Event Tickets As NFTs on Flow Blockchain

The world’s largest online ticketing platform is teaming up with blockchain firm Dapper Labs to enable event organizers to mint tickets as non-fungible tokens (NFTs) on the Flow (FLOW) blockchain. Dapper Labs, the Vancouver-based company which created Flow following the success of its digital pet game CryptoKitties, says its collaboration with Ticketmaster will offer attendees […]

The post Ticketmaster Announces Collaboration With Dapper Labs To Mint Event Tickets As NFTs on Flow Blockchain appeared first on The Daily Hodl.

Blockchain gaining adoption in more than just DeFi: Report

Ticket Marketplace Giant Ticketmaster Chooses Flow Blockchain for NFT Push

Ticket Marketplace Giant Ticketmaster Chooses Flow Blockchain for NFT PushThis week, Ticketmaster Entertainment, Inc. revealed the company will give event organizers the ability to mint non-fungible token (NFT) tickets via the Flow blockchain. Last November, Ticketmaster said it was working with Polygon but since Super Bowl LVI, the ticket sales and distribution behemoth started working with the Dapper Labs-managed Flow. Ticketmaster Has Minted More […]

Blockchain gaining adoption in more than just DeFi: Report

Barbie-verse: Mattel inks multi-year deal with Cryptoys NFT marketplace

Mattel plans to use its intellectual property featuring brands such as Barbie and Hot Wheels to create playable avatars sold as non-fungible tokens (NFTs) in an upcoming metaverse.

Major toy brand Mattel has signed a multi-year partnership with forthcoming toy-focused non-fungible token (NFT) marketplace Cryptoys to exclusively feature its brands on the platform.

Cryptoys is expected to launch in late summer 2022 on the Flow (FLOW) blockchain and is the flagship product of OnChain Studios which has received funding from crypto-interested venture capital firms such as Andreessen Horowitz (a16z) and Dapper Labs.

OnChain Studios also plans to make a Cryptoys metaverse and other play-to-earn games where Mattel's intellectual property — including Barbie, Hot Wheels, and Masters of the Universe among many others — will be made into playable avatars.

Mattel President and Chief Operating Officer Richard Dickson said it was the “first toy company to launch NFTs” and that the brand sees “incredible opportunity in the Metaverse for our cherished brands and iconic IP.”

The partnership was teased by Cryptoys on June 8 with its Twitter account posting a cryptic 17-second video featuring some of Mattel’s retro product advertisements.

Mattel has explored NFTs in the past and partnered with the WAX blockchain in October 2021 to release a collection of Hot Wheels NFTs. January 2022 also saw Mattel auction three one-of-one NFTs in collaboration with French luxury brand Balmain which netted the brands close to $49,000 for all three.

With the NFT sector expected to move around $800 billion over the next two years, other toy brands have launched NFTs to capitalize on the growing interest and generate new revenue streams for their business.

Mattel’s major competitor Hasbro which owns brands like Action Man, My Little Pony, and G.I. Joe launched its first NFT collection in October 2021 for its Power Rangers brand in a bid to compete in the NFT space.

Related: Beyond the hype: NFTs can lead the way in transforming business experiences

Pop-culture collectibles giant Funko has created multiple NFT collections, an early one of which featured the Teenage Mutant Ninja Turtles in August 2021, shortly after it acquired NFT display and tracking platform Tokenwave.

Cryptoys itself also plans to sell a collection of original avatar like NFTs with these so-called “digital toys” featuring customization through further NFTs which can change clothing, accessories and attributes for use in a wider “Cryptoyverse” the company plans to build.

Mattel’s NFTs will join other popular projects on the Flow blockchain including NBA’s Top Shot and UFC’s Strike.

Blockchain gaining adoption in more than just DeFi: Report

Nifty News: Azuki founder under fire, CryptoPunk sells for a major loss…

The founder of the Azuki NFT project has been accused of abandoning three projects and Instagram has partnered with Dapper Labs to roll out Flow NFT support.

The founder of the $723.5 million Azuki NFT project who goes by “Zagabond” online caused a sh*tstorm yesterday after revealing that they had previously worked on three noabandoned NFT projects. After facing strong backlash from the NFT community, they have since apologized for their “shortcomings.”

The three projects in question are Tendies and CryptoPunks copycats CryptoPhunks and Cryptozunks. Zagabond suggested all three had failed due to a lack of community support , and other factors such as team members leaving or high gas fees on Ethereum (ETH).

After releasing the blog via Twitter, most replies were in support of Zagabond’s honesty on the trial and error path that led to Azuki NFTs, however other sections of the NFT community weren’t as pleased.

User zachxbt didn’t mince their words when they posted: “So does Web 3.0 = rugging three projects in less than a year?” before going to recount some alleged misdeeds relating to the Cryptozunks developers pretending to be women in a bid to market the project.

Other users like dxv_eth alleged that Zagabond had agreed to build a marketplace for the Cryptozunks project and also purchase Metaverse in a bid to strengthen the ecosystem, but failed to do so before eventually ghosting the community.

After being slammed by the community and holding a Twitter Spaces chat, Zagabond issued an apology earlier today, noting that:

“I realized my shortcomings in how I handled the prior projects which I started. To the communities I walked away from, to Azuki holders, and to those who believed in me — I’m truly sorry.”

Madonna x Beeple

Iconic pop-musician Madonna and NFT heavyweight Beeple have teamed up to launch a tokenized art collection that humbly depicts the singer as the mother of creation, evolution and technology.

There are three different NFT art pieces in total, all of which depict Madonna giving birth to various either trees, butterflies or mechanical centipedes.

Beeple and Madonna

The NFTs are set to go up for auction via SuperRare on May 11 and Madonna stated that all of the proceeds will go towards three different non-profit organizations called National Bail Out, V-Day and Voices of Children.

Instagram to support flow NFTs

After Dapper Labs announced the $725 million ecosystem fund to boost growth on its Flow blockchain this week, the team has also revealed that it has signed a partnership that will see Flow-based NFTs supported on Instagram.

Dapper Labs CEO Roham Gharegozlou noted on Twitter earlier today that the move will be “game-changers” for NFT projects on Flow such as NBA Top Shot, NFL All Day and UFC strike as it will offer them massive exposure to a global audience.

It also marks the one of the first major blockchain partnerships for Instagram. The social media company will also roll out support for NFTs on Ethereum and Solana.

The CEO also clarified that the $725 million worth of funding will be “mostly investment capital” and not grants handed out to projects that want to build on the ecosystem.

CryptoPunk sells for huge loss

An NFT from one of the original NFT projects CryptoPunks was sold for a whopping 86% loss on May 8.

CryptoPunk #273 sold for hefty $1.003 million in October, worth 265 ETH at the time, but has since fallen from grace amid a tumultuous time for the crypto and blockchain sector, going for a mere $139,836 on Sunday morning.

Larva Labs’ CryptoPunks boomed in popularity throughout 2021, and the project was recently acquired by Yuga Labs in March, the team behind the widely successful Bored Ape Yacht Club NFTs. The move doesn’t appear to have done much for the market in the short term however.

Related: Otherside NFTs fall below mint price while cheaper ETH sees sales volume boost

Other Nifty News:

Meta CEO Mark Zuckerberg said that the company is starting to test digital collectibles on photo and video sharing platform Instagram this week, signaling a move toward adding NFTs.

Billionaire investor Mark Cuban has tipped commercial smart contract adoption as the next catalyst to drive the crypto and blockchain sector, as he argued that networks that only offer NFTs and DeFi for the sake of it will eventually crumble.

Blockchain gaining adoption in more than just DeFi: Report

NBA Launches Initiative Dedicated to Web3, Metaverse, and NFT Collectibles

NBA Launches Initiative Dedicated to Web3, Metaverse, and NFT CollectiblesThis week, the National Basketball Association (NBA) announced the launch of its own non-fungible token (NFT) initiative called “NBAxNFT.” According to the professional basketball league, the goal is to showcase “all things intersecting basketball and Web3, including NFTs, gaming, and the metaverse.” Professional Basketball and Web3 Collide Following the popular collection NBA Top Shot and […]

Blockchain gaining adoption in more than just DeFi: Report