I laid out this theory a few weeks back that the stock market is causing the bubbles.
Gains from Apple are moving into Tesla. Gains from Tesla are moving into ARKK. Gains from ARKK are moving into SPACs. Gains from SPACs are moving into EV stocks.
Flies are feeding on an oversized elephant and then having giant baby flies who are having giant baby flies and on and on we go.
This phenomenon is not confined to the stock market, we’re seeing it in the cypto space as well. Gains from Bitcoin are going into digital basketball cards.
Yes, digital highlights that sit on, you guessed it, the blockchain.
Wait wait wait, hold on. So, like, you buy a 5-second video clip of Zion Williamson dunking?
Yes, that’s the idea.
Wait, can’t you just, like, go on YouTube? Yes.
For the actual breakdown of how this works, which isn’t too different from how I described it, here’s Tommy Beer:
NBA Top Shots, which are the video versions of highlight moments, are sold in limited edition packs (for between $9 and $230, depending on the quality of the highlight and the player) and only sold for a limited time.
After packs sell out, the only way to acquire NBA Top Shots is on the peer-to-peer marketplace.
Once purchased, those highlights go into a buyer’s encrypted, secure highlight wallet.
Each individual NBA Top Shot video card has value due to its authenticity and scarcity being secured by a blockchain called Flow.
If you don’t get it, you’re not alone. I was shaking my head at first. But your knee-jerk reaction doesn’t matter because there is currently a huge demand for this sort of thing. They did $20 million in sales since its launch just a few months ago. If you’re interested in buying a pack, you can’t. They’re sold out!
I think it’s clear that the cash for this is coming from crypto guys. They’re peeling off some money and throwing it here, and why not?
I have no idea how big this market can get, and what this does to physical sports cards, but I do know that there are nonmonetary things going on here, like social status, community, and fun, just to name a few.
Packy McCormick highlighted these aspects of alternative platforms in Software is Eating the Markets. I wouldn’t be so quick to call this a bubble, even though it seems to make no financial sense whatsoever.
Josh and I got into Top Shot and much more on the latest edition of What Are Your Thoughts?
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