NBA Top Shot revolutionizes the way basketball enthusiasts engage with their favorite sport by offering a marketplace for nonfungible tokens (NFTs). These digital collectibles, known as Moments, consist of NBA video clips and digital art, each varying in rarity. Users have the opportunity to trade NFTs featuring memorable plays such as Luka Dončić’s winning three-pointer or LeBron James’ electrifying dunk.
Similar to traditional sports collectibles, NBA Top Shot allows fans to acquire rare items associated with their favorite teams. The goal is to either build a collection or sell them at a later date for a higher price. However, unlike physical collectibles, NFTs are unique cryptographic tokens that exist on a blockchain, making replication impossible.
NBA Top Shot operates with the official licensing of the NBA, the NBA Players Association, and Dapper Labs. The marketplace utilizes the FLOW blockchain, developed by Dapper Labs, to support the creation of games, apps, and digital assets. The process starts with the NBA licensing its reels and digital art to Dapper Labs, who then transform them into NFT Moments.
Each Moment comes with a unique serial number, ensuring its authenticity and indicating its rarity. To maintain scarcity, Dapper Labs only produces a limited number of NFTs. Consequently, the more common Moments are more affordable compared to the rarer ones. Packs, similar to bundles of traditional sports cards, contain these Moments and are released alongside the NBA season. This allows fans to collect new packs of NFT Moments featuring the season’s highlights. Additionally, fans can acquire Moments from the past, such as Magic Johnson’s iconic dunk from May 16, 1980.
Collecting NBA Top Shot Moments involves some uncertainty. Users are unaware of which Moments they will receive when purchasing a pack, as availability depends on the specific set or pack. NBA Top Shot offers four categories of Moments: Common, Fandom, Rare, and Legendary. The fifth category, Ultimate, is only accessible through auctions. Each category operates differently:
1. Legendary Moments: These are extremely rare, comprising only 0.09% of the total available Moments. Consequently, they tend to be more expensive than other Moments.
2. Rare Moments: Historical plays from NBA legends make up 1.6% of the total Moments. These Moments are highly sought after by collectors.
3. Fandom Moments: The availability of these Moments is not fixed. Dapper Labs creates them based on special experiences associated with specific events. They may only be accessible to users who were present at the arena during those moments.
4. Common Moments: These Moments make up the majority, accounting for 95.8% of the total Moments. They are readily available and more affordable compared to the other categories.
NBA Top Shot organizes Moments into Packs and Sets. Base Sets, falling under the Common rarity category, are released in a specific order based on the Series and release. They contain three basic Moments and are ideal for users starting their NBA Top Shot collection. Non-Base Sets, on the other hand, come in variations and include at least one Common Moment along with a Rare or Legendary Moment, making them more expensive.
Challenges and Quests provide another way for NBA Top Shot users to acquire Moments as rewards. Challenges involve fulfilling specific tasks within a given timeframe. Users who complete the challenge receive a newly minted Moment. Quests, resembling scavenger hunts, require users to locate and build an exhibit for Moments with certain characteristics. While more difficult than Challenges, Quests offer greater rewards.
It’s important to exercise caution when investing in NBA Top Shot Moments. The demand for NBA Top Shot experienced a surge in 2021 but declined significantly in November 2022, in line with the overall drop in the NFT market. Some analysts even labeled the NFT market as a bubble. Therefore, potential collectors should only invest what they can afford to lose and conduct thorough research before making any decisions.