NBA Top Shot offers basketball enthusiasts the opportunity to engage in a nonfungible token (NFT) marketplace where they can buy, sell, and trade digital collectibles themed around the NBA. These collectibles, known as Moments, are NFTs that consist of NBA video clips and digital art and vary in rarity. Users can trade NFTs featuring memorable moments in basketball, such as a winning three-pointer from Luka Dončić or a dunk from LeBron James, depending on their availability.
The concept behind NBA Top Shot is similar to traditional sports collectibles, where fans try to obtain rare items associated with their favorite teams with the intention of collecting or selling them at a higher price. However, in the case of NBA Top Shot, these collectibles are digital assets represented by unique cryptographic tokens that exist on a blockchain and cannot be duplicated.
NBA Top Shot operates as a licensed platform by the NBA, the NBA Players Association, and Dapper Labs. The marketplace runs on the FLOW blockchain, which was developed by Dapper Labs to support the creation of games, apps, and digital assets. To create Moments as NFTs, the NBA licenses its video footage and digital art to Dapper Labs, who then assigns a unique serial number to each Moment to guarantee its authenticity and indicate its rarity. Dapper Labs also ensures scarcity by producing a limited number of NFTs, with rarer Moments being more valuable than commonly available ones.
Moments are typically obtained through Packs, which are bundles of NFTs similar to traditional sports cards. Packs are part of a Series that is launched in conjunction with the NBA season, allowing fans to collect new packs of NFT moments featuring the best highlights of the season. Additionally, fans can acquire Moments from the past depending on their availability, such as Magic Johnson’s dunk from May 16, 1980.
Collecting NBA Top Shot Moments can be unpredictable, as the specific Moments received in a purchase depend on the availability of each NFT within a set or Pack. There are four categories of Moments: Common, Fandom, Rare, and Legendary. Common Moments make up the majority at 95.8% and are easily accessible and less expensive. Rare Moments represent 1.6% of the total and feature historical plays from NBA legends. Fandom Moments are created based on special experiences tied to specific events and may only be available in real-time to users present at the arena. Legendary Moments are the rarest, comprising only 0.09% of the total Moments and commanding higher prices.
NBA Top Shot also offers Challenges and Quests as alternative ways for users to acquire Moments as rewards rather than through purchases. Challenges require users to complete specific tasks within a given timeframe, such as collecting a certain number of Moments. Quests involve scavenger hunts where users must locate and assemble an exhibit of Moments with specific characteristics. Quests are typically more challenging but offer greater rewards.
It is important to note that the demand for NBA Top Shot experienced a significant surge in 2021 but has since declined, mirroring the overall decrease in demand for NFTs. Therefore, entering the NBA Top Shot market as a speculative investment carries risks, and individuals should only invest what they can afford to lose.
This article does not provide investment advice or recommendations. Readers should conduct their own research and exercise caution when making investment or trading decisions.