What is NBA Top Shot? NBA Top Shot is a digital collectible. Basically, the collectible is a video highlight from a game. It is packaged in various forms and bought and sold by people who want them.
The best way to analogize it is by comparing them to a modern-day baseball trading card. It is part of digital sports trading cards, part highlight, and part commodity.
The NBA Top Shot surfaced for the first time in the summer of 2019 in a partnership between the Association and Dapperlabs.
In just over a year they have become the rage, a phenom collected by people who are crazy about collecting, tech nerds, NBA fans, and those looking for the next big breakout item to make money.
NBA Top Shot is made of “Moments” or video highlights from a particular player. You can collect dunks, passes, blocks or layups and each of these Moments is available for sale representing the NBA’s biggest stars. Of course, some Moments are more valuable than others.
Common packs can start as low as $9.00 where more rare packs can cost just under $1000.00 for 10 random moments. The most rare moments can top 6 figures. Apparently, the Mavericks have plans for NFTS blockchain space which Cuban sees as having an unlimited upside.
Mark Cuban has begun to collect Top Shot Moments. According to Cuban “I get to enjoy knowing I own my Maxi Kleber dunk Moment, along with knowing the serial number and much more. Some people might complain that I can get the same video on the internet anywhere, any time, and watch it.
Well, guess what, I can get the same picture on any traditional, physical card on the internet and print it out, and that doesn’t change the value of the card.”
For NBA Top Shot, the value comes from the quality of the video, the digital packaging that they create with additional statistics and interesting information, and the security of the blockchain. NBA Top Shot is a tech product. There are 2 different kinds of Moments.
One type of Moment is the Limited Edition. There are only a controlled number of these and they are more valuable. The next type is the Circulating Count where the amount may change as more packs are released. Sometimes there is no availability for new packs. This has created a secondary market where individual clips start at $2.00 each.
A Shark Smells Blood?
Mark Cuban has been a collector since he was a child. He started trading baseball cards and stamps. According to Cuban ” When I got to be about 15 and started going to stamp shows to add to my collection, I quickly realized that there were inefficiencies in that market.
The same stamp was selling for different prices at multiple stamp dealers at the same show. It didn’t take long to realize I could buy from one and sell to another.”
The reason that Cuban is so enamored with NBA Top Shots is that digital assets are easier to maintain than physical assets that need to be stored, protected, and kept in pristine condition. Additionally, the seller doesn’t assume any risk in delivery which is time-consuming, expensive, and annoying.
Cuban believes that with Top Shot “you have all the fun, none of those risks, and the value is still set by the same laws of supply and demand.”
Right now, Top Shot is all the rage. Hopefully, for collectors, some Moments will continue to grow in value like some trading cards, sports memorabilia, and player’s autographs.