What is NBA Top Shot?
NBA Top Shot is a digital marketplace where you can buy and sell NBA highlights, known as moments. It’s like trading cards, but fully digital. There’s no physical collectible to touch or hold.
Highlights / moments can be collected from packs you can buy or on the marketplace where other people sell individual moments.
What am I collecting?
The highlight is individually stored as a token, and you are purchasing that token (remember, NBA Top Shot calls them “moments”). The entire process is completely transparent, using the same technology as Bitcoin: You always know exactly how many moments exist for each highlight, as well as the transaction history. Everything is clearly out there for you to see.
When you buy a moment through the marketplace or pull one from a pack, that moment is yours to keep in your digital wallet, or put up for sale on the NBA Top Shot marketplace.
NBA Top Shot is a NFT… What is a NFT?
NFT stands for non-fungible token. This can be used to describe anything in life, physical or digital.
The “token” part is easy to understand; it’s just a good, an item, or something you can collect. A catch-all term.
Fungible essentially describes whether something is reproducible or not. Can I replace an item? If so, it is fungible. If not, it is non-fungible.
Why collect digital memorabilia?
No fakes. No reprints. In the digital space, everything is completely clear and transparent, and there will be no wear and tear on a digital good.
On NBA Top Shot, you will always know exactly how many of a certain “moment” there is, and its transaction history as well. It’s all clearly visible and easily found on the blockchain.
What does Blockchain mean?
Blockchain is the technology that helps power the NFT market. A ledger of transactions, a decentralized database updated in real time. Safe and secure because nobody owns it. This video might help:
Why would I buy a moment?
The “Supreme” effect. Low supply, high demand. The power of the internet. FOMO. Flip for profit. New technology. Any combination of these things!
Why is NBA Top Shot so valuable?
Why is there value placed upon trading cards? They are just pieces of cardboard with a picture on it, aren’t they? They can be printed at home… but a home-printed Michael Jordan rookie card won’t sell for over a million dollars.
An educated guess as to why there is value here is a combination of high demand and low supply, investor bullishness, society’s desire to collect both physical and digital things, and the joy of being part of a community with good vibes (which has been said about the NBA Top Shot community).
Is it all just a fad?
It’s possible this is all just a fad and crashes to zero. Dapper Labs also developed CryptoKitties, which was a white-hot NFT collectible arena a few years ago, which eventually fell off a cliff.
The difference here is that, while the internet is run by cat memes and we all know it, sports fans are a different breed. There is a sense of loyalty, urge to collect and relive goose-bump moments and celebrate revered players, as well as invest. The sports connection might give it more staying power.