NBA Top Shot: Sports First NFT Collectibles

What Is NBA Top Shot?

NBA Top Shot is an NFT marketplace where basketball video clips can be purchased, sold, and traded. NBA Top Shot, which debuted in 2020, is a collaboration between the NBA and Dapper Labs, the company behind CryptoKitties. However, NBA legends Michael Jordan, Kevin Durant, and Klay Thompson are a few prominent investors.

Users of the platform can trade digital assets based on clips from NBA games and are powered by Dapper Labs’ Flow blockchain. Transactions on a number of other sports NFT marketplaces, including NFL All Day and UFC Strike, are supported by the Flow blockchain. As of 2022, NBA Top Shot had more than a million registered users as of September 2021. Since the platform’s launch, data from NFT marketplace tracker DappRadar indicates that over 500,000 NBA Top Shot have been traded for a combined volume of almost $1 billion.

What Are NBA Top Shot Moments?

Moments are the video highlight reels that are offered as NFTs on NBA Top Shot. Moments’ value rises with rarity, much like traditional sports trading cards do. The collectible potential of a video clip increases with rarity. A Moment is essentially just a video clip of a particular play—like a Steph Curry layup or a LeBron James dunk, for example. So why would anyone pay money for video highlights when they can watch them for free on YouTube? Moments go beyond highlights.

Each Moment is an NFT that is officially licensed by the NBA and is minted with a unique serial number and data, including game and player stats. Like other NFTs, which represent real-world items such as art, in-game items, and music, each Moment represents an actual item. Additionally, there is the prestige of owning a portion of basketball history. Similar to a certificate of authenticity, NFTs are hard to copy or forge due to the technology used to create them.

Also Read: What Are Generative Art NFTs? How Much Are They Worth?

How does NBA Top Shot work?

Users of NBA Top Shot can buy, sell, and collect NBA NFTs that feature significant “Moments” that were created on the FLOW blockchain. Moments vary in rarity, but the most valuable ones are the rarest. Similar to physical trading cards, moments are created in “Packs.” As a part of a Series, Sets of Packs are produced. Each Series’ timetable corresponds to the NBA season.

As a result, users can purchase fresh digital packs of NFT Moments every week or so that highlight the most important plays from the current season. Even though the current season’s events determine pack drops, fans of legacy plays don’t have to worry about not getting their hands on their favorite old plays. Retroactive Moments can be collected in large quantities. You can download Michael Carter-Williams’ 2013 dunk, for instance.

The project’s ultimate goal is to give fans a gamified experience. Users can compete in Top Shot challenges with their NFTs and win rewards like moments, scarce packs, and prizes. For one challenge, for instance, participants had to submit 12 particular moments from the Series 3 Metallic Silver Fandom Edition in order to win a pack of Series 3 2022 All-Star Standard cards.

What are NBA Top Shot Packs?

Top Shot Moments are categorized into packs, which are developed assets as a component of a series. These can be divided into two broad categories: Base and Non-Base.

Base Sets are exactly what they sound like: high edition sizes that are frequently released and offered at a reasonable cost (typically $9 each). Base Sets are removed in the series and release order they were released, so Series 1 had 12 releases. These frequently belong to the Common rarity group and include three fundamental Moments that are excellent for those just getting started or those looking to complete a collection.

On the other hand, there are numerous variations of Non-Base Sets. A Common Moment, as well as something Rare and/or Legendary, will always be present in Non-Base sets. The packaging of non-Base set packs like “Playoffs,” “Premium Pack,” and “Run It Back” can all be used to distinguish them from one another. Naturally, these are also more expensive.

Also Read: Initial Game Offering: A Simple Guide To Starting An IGO

How to buy NBA Top Shot Moments

Fans must register with Dapper Labs for NBA Top Shot before they can begin using Top Shot. To do this, go to the Top Shot website and click “sign up.” By opening a Dapper account, you can get a wallet that stores money and allows you to buy crypto collectibles.

There is no doubt that users have profited significantly by purchasing and then reselling Top Shot Moments. The financial benefits are difficult to ignore, regardless of whether you are a fan of basketball. Therefore, the following points should be taken into account if you’re thinking about joining the Top Shot community:

Set a spending limit that you are happy with. Never make an investment that you can’t afford to lose.
Always be prepared. Stick to selling a Moment quickly if you’re buying it with the intention of doing so. Avoid making any purchases that you wouldn’t be content holding onto if your plan doesn’t work out.
Check the flow of Moment. Back to CC vs. LE, again. High edition size Top Shot Moments are dispersed gradually over time. The better, the rare.
Think about historical importance. Although superstar players dominate the sales charts, a player’s first basket or assist will always be remembered fondly by their fans.
Check for typos. Although Dapper Labs has a fantastic team of developers, not everything is always flawless. Mistakes and misprints are common, whether it’s Jameer Nelson’s assist being mistakenly credited as a dunk or Marcus Smart being listed as wearing jersey #7 when he actually wears #36.

Also Read: Explained: What Are PFP NFTs And How Do They Work?

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Most expensive NBA Top Shot NFT sales

A group led by FantasyLabs co-founders Jonathan Bales and Peter Jennings purchased a Ja Morant Moment for $35,000 in January 2021. This purchase broke all previous records for the platform at the time and contributed to its increased sales and popularity. Days later, the founder of SnapBack Sports, Jack Settleman, arranged for a group to pay $47,500 for the Serial No. 23 portion of LeBron James’ illustrious “Kobe Tribute” dunk.

Not to be outdone, tech entrepreneur Jeremy Levine paid $100,000 for the #1 Zion Holo Moment in the same month. In April 2021, a LeBron James dunk from the NBA Finals of 2020 that was featured in an NBA Top Shot Moment sold for $387,600. Sadly, that same LeBron clip is now valued at $230,023, due to the decline in the value of each NBA Top Shot Moment overall.

Pros of NBA Top Shot

1. Utilization simplicity

In order to appeal to those unfamiliar with cryptocurrencies and NFTs, Dapper Labs created NBA Top Shot. Use of the market requires no prior knowledge of blockchain technology or cryptocurrency investing. Simply having a passion for basketball and being well-versed in supply and demand will do.

2. Amazing experience with collecting

Physical trading cards need to be properly stored, preserved, and possibly even had their authenticity checked when they are collected. Moments cannot be destroyed, stolen, or degrade over time like physical cards because they are digital and stored online. No expensive grading procedure is required because their authenticity has already been established on the blockchain.

3. Negative safeguard against oversupply

NBA Top Shot creates all of the Moments it mints and licenses, managing the flow of goods into the market. This should help prevent the kind of market oversupply that was witnessed in baseball cards in the 1990s, which would otherwise result in a flood of identical products onto the market.

4. Reduces the entry barrier for new NFT collectors

In recent years, the cost of collectibles has significantly increased across a wide range of categories, including NFTs. NBA Top Shot makes it possible to collect NFTs.

Also Read: What Are NFT Derivatives? How Are They Different From Original NFT?

Cons of NBA Top Shot

1. A long process of verification

Collectors hoping to make money off a quick sale may lose out due to Dapper Labs’ time-consuming verification process. Delays may be expensive due to the varying values of moments.

2. Risk of financial loss

It is always possible to lose money when investing, even with NBA Top Shot’s NFTs. Some collectors have mentioned buying packs only to find the Moments inside aren’t worth what they paid for. Furthermore, there are no assurances that a seller will be able to find a buyer willing to purchase their Moments for the asking price.

3. The market’s demand affects NFT values

NBA Top Shot’s Moments, like all NFTs, are only worth what someone else is willing to spend on them. Basketball fans determine the prices; they don’t really have any intrinsic value on their own. It’s impossible to forecast when prices will change, devaluing some previously valuable Moments.

Top Shot Moments: A New Way to Engage NBA Fans

While NFTs have been making waves in the fine art world, Top Shot has been able to successfully capitalize on an area that is less elitist and perhaps even more accessible to the general public. Sports fans have a long history of paying for the right to express their devotion, and Top Shot’s resounding commercial success is a testament to this enduring phenomenon. However, purchasing a Top Shot Moment does not mean you have acquired exclusive intellectual property rights associated with that Moment’s video highlight.

Furthering the project’s potential for success, Top Shot is actively creating new ways for users to interact with and use their digital collectibles. The current annual market value of the trading card industry is $5–6 billion.

Also Read: My Neighbor Alice: An Introduction To The Play-To-Earn Crypto Game

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Source: https://coingape.com/blog/nba-top-shot-sports-first-nft-collectibles/

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