The NBA Top Shot is a blockhain-based platform that allows users to buy, sell and trade official video highlights called Top Shot Moments. The platform has been developed by Dapper Labs and has the official backing of the NBA, along with the NBA Players’ Association.
Since the NBA Top Shot went live in October 2020, the platform has registered sales worth over $205 million dollars, leading to comparisons to the Bitcoin phenomenon. Quite a few people on the internet have already shared their stories of earning big money through the NBA Top Shot, with innumerable Top Shot “moments” valued more than $100,000.
Regardless, the platform is reasonably new, and there are quite a few risks involved, in addition to things that must be kept in mind before people start investing money on individual drops. In this article, we attempt to trace the pros and cons that come along with investing big money on the NBA Top Shot platform.
Pros of investing money in NBA Top Shot
The NBA Top Shot has already been claimed to have revolutionized the traditional card collecting. The platform combined old-school elements of card trading with real-life potential of earning money. The cryptocurrency market has already produced a number of big-money stories, and NBA Top Shot is well and truly headed in the same direction.
The existence of specific non-fungible tokens allotted with every NBA Top Shot moment means that there is official authenticity and ownership of the assets in question. NBA Top Shot moments have the league’s backing, and they are the closest most NBA fans can get to actually being related to the sport.
While the highlights can at the end of the day be watched on the internet, these moments are currently valuable commodities. Most markets consider a good valuable until people keep up the demand for it, and the official nature of NBA Top Shot moments along with the perennial popularity of the sport makes it seem that the platform is a win-win, for the fans and for the product owners.
Another advantage that has seen the NBA Top Shot soar in popularity is that it has manage to combine the basketball community with the cryptocurrency one. The platform is not just allowing fans to own these “moments,” but the Marketplace currently has huge potential for profit.
The NBA Top Shot has managed to maintain "scarcity of goods" in the marketplace, which translates to some Moments being considered highly valuable. Overall, with the uptick potentially exponential in nature, the platform appears to be a good place to invest money, if you have enough to spare.
Cons of investing money in NBA Top Shot
While the NBA Top Shot platform is making huge strides currently, there are a number of reasons why investing money on the platform can prove to be a bad idea. First and foremost, you need a certain amount of luck to land valuable Top Shot moments by buying the number of packs that are dropped on the platform.
Secondly, quite a few people have complained about problems related to the buying and trading of packs, along with unstable servers and laggy website. While that is something which one can expect to be improved in due time, investing money on the platform involves risks.
There are quite few things that must be kept in mind before you do so. You can get a better idea of things to keep in mind before investing, through this article.
With the value of these moments bound to fluctuate over time, investing a large chunk of money might not be the most sensible thing to do, despite the obvious potential for profit. The NBA Top Shot has until now operated in a market without competition, and therefore the moments might be a better investment strictly in the short term.
Additionally, the 'moments', in truth, have little to no “real” value, and it is only the basketball fan who has managed to keep the trade prices soaring. With the platform bound to lose its novelty in the coming months, there is quite a bit of risk involved, which also suggests that investing money in the short term is more ideal.
Furthermore, the NBA Top Shot platform is currently dropping packs on a daily basis, which are bound to reduce the value of specific moments in the coming months. This can be taken care of by maintaining scarcity and balancing the number of moments with increasing numbers of users.
However, the market’s unpredictability means that the Top Shot platform might be more suitable for people who don’t mind losing quite a bit of money, and making a lot more, by keeping at it.
The only problem in that case is the fact that the value of the individual NBA Top Shot moments has been projected to go down, in due time. For the time being, the platform is soaring, and there is money to be made.