WHAT IS THE NBA TOP SHOT, AND HOW DOES IT WORK?
The NBA Top Shot is an online platform for selling virtual basketball cards. It is a cooperation between the NBA and Dapper Labs, a blockchain organization with a heavily trafficked marketplace.
Fans can purchase and sell “moments” or video clips of their favourite players from recent seasons. These moments exist on the blockchain, where they are stored as a digital record book using cryptography. This makes them unique and impossible to replicate or change ownership.
These “moments” or video clips can be obtained in two ways: directly from the Top Shot store in the form of limited-edition packs that range in price from $9 (for a pack) to $999 (for a pack that might contain rare cards), or through the marketplace, where the players can trade packs for cash.
But, what’s the big deal? Why is there such complications involving team sport? Well, NBA top Shot is an example of a major cryptocurrency trend known as non-fungible tokens or NTFs. Still, confused? Check out our in-depth article on NFTs.
The term “Non-fungible” basically means that it is one of a kind and cannot be replaced with something else, making it unique and of high value. A bitcoin, for example, is fungible, meaning you can swap bitcoins because they are exactly the same. Trading cards, on the other hand, are non-fungible because they cannot be duplicated and hold different attributes.
The Market Analysis
Top Shot has Sold $187.3 million in the last month, according to crypto tracker CryptoSlam, this is a staggering 1,197 percent improvement over the previous 30-day period.
NTFs, which are still the realm of cryptocurrency enthusiasts, have the best chance of going mainstream with Top Shot. More than 800,000 Top Shot accounts have been established, resulting in sales of over $500million. NBA Top Shot has added almost 27,000 users and completed 80,000 purchases in just 24 hours.
A single LeBron James highlight sold for a record-breaking $208,000.
According to DappRadar, NBA Top Shot boomed in February, and after that, we see an overall downward trend in users, volume and transactions. Still, Dapper Las, a Canadian blockchain technology firm, announced on Tuesday that it had risen $350 million in private investment, including some from current and former NBA players, including Michael Jordan, to expand its virtual NBA trading card platform.
How Do People Make Money From NBA Top Shot?
Theoretically, users can benefit by buying undervalued moments from collectors, waiting for their value to increase, and then selling them at a profit. They can also benefit from pack drops and maybe score something of value and profit from them.
For example, If you pay $230 for a limited-edition pack that includes a “legendary” moment, you’re already in wonderland. It’s theoretically possible to purchase a limited-edition pack and end up with a highly valued LeBron James or Zion Williamson moment, for which people are willing to pay six figures.
The higher the value of a moment, the rarer it is. As a result, iconic moments are normally the most valuable. The lower the serial number, the higher the value for a given moment in a series. For example, Ky Bowman’s #4 moment from the Metallic Gold set would sell for $7,450, while #292 from the same set would sell for $632
Can You Purchase NBA Top Shot Now?
Due to the high volume of visitors on the website, NBA Top Shot ensures that every user is accommodated fairly by assigning them to a queue. Priority is granted to those who are at the front of the queue. To solve this, NBA Top Shot also begun to distribute pre-order packs on March 29th.
Pre Order: Base Set – Via NBA Top ShotPurchasing an NBA Top Shot is more like purchasing a limited-edition sneaker. To get your hands on them, you’ll need to be swift and have detailed information about the market. Due to recent popularity, the “moments” sell out within minutes, if not seconds.
Trading of the cards start immediately, and unlike sneakers and baseball cards, NBA is involved in every step of the process. According to some reports, traders have already made six-figure profits, and only time will tell if this will be the next big thing.
Is NBA Top Shot Still Worth Flipping?
Before you go ahead and spend big bucks in NBA Top Shot Moments, there are a few things that you need to keep in mind. Even though NFTs (non-fungible tokens) aren’t necessarily a cryptocurrency, but they still operate on similar principles with some external influences.
So, until the value of these non-fungible tokens continues to rise, it is theoretically and practically possible to profit from the platform.
One of the main factors for Bitcoin’s early success was its scarcity. Until now, the NBA Top Shot has been working on the model and has attempted to limit the number of assets available in the market. As mentioned above, they have started the queue method which is basically first come, first serve.
This tells us that users who can get their hands on the pack drop can essentially print money right away because even the cheapest “moments” are worth more than a low-tier pack.
Before the market corrects itself, this might be the best time to invest in packs since demand is high and supply is low, which means prices will increase for now, and if you’re lucky enough, you might even score a rare “moment” that will generate you thousands of Dollars.
Thanks to technological advancements that led to NFTs you can also flex your digital kicks alongside your NBA Top Shot “moments” find out more about NFTs and how they’ll impact the future of sneaker collection.