Basketball Player Spencer Dinwiddie Engages Tritaurian Capital for Future Token Offering of his Contract

Basketball player Spencer Dinwiddie is engaging the services of New York-based Tritaurian Capital to make an offering of SD26 tokens, that fractionalize his NBA contract, to accredited investors. Dinwiddie made the announcement in an email to potential investors.

The tokens on Ethereum’s blockchain will be listed on Paxos, a cryptocurrency exchange, and allow Dinwiddie to convert part of his contract into immediate cash. The Brooklyn Nets player plans to offer 90 tokens for $150,000 each in an offering to be held at a future date. In return, he has promised 4.95% monthly interest on the invested amount. The tokens will fully pay out in 2023.  

According to its website, Tritaurian Capital is the “first non-ATS broker/dealer to be approved for a license to sell digital private placement securities using distributed ledger technology.” The firm obtained its license for private offerings of digital securities in July last year. A quick search on LinkedIn shows five people associated with the firm, out of which three are advisors/freelance traders. A FINRA broker check reveals that Tritaurian is licensed to operate in 28 states, possibly limiting the geographic exposure of Dinwiddie’s offering in the United States.

Online publication The Block has pointed out that the Dinwiddie’s firm, DREAM Fan Shares (DFS), had earlier announced a partnership with North Capital Private Securities (NCPS), a Utah-based financial services firm, as a broker-dealer.

Dinwiddie announced tokenization of his $34.5 million three-year contract last September. The offering was supposed to be held in October. But the NBA objected to it, citing Dinwiddie’s contractual terms that prohibit assigning any part of his contract to third parties. The latest announcement does not offer information about progress of subsequent negotiations or provide a launch date for the offering. “Our teams continue to work behind-the-scenes to design a comprehensive and repeatable offering that we believe is compliant with existing regulations,” wrote Dinwiddie in his latest missive.