Source: A screenshot, nbatopshot.com
Listings for NBA Top Shots have begun appearing on the major eBay marketplace, as holders of the blockchain-based collectibles look to profit from the surging interest in non-fungible tokens (NFTs).
One NBA Top Shot Premium Pack is currently on sale on eBay for USD 2,500, while dozens of other packs are being sold for anything from USD 5 to USD 1,800.
Source: A screenshot, ebay.com
The explosion of interest in NBA Top Shot NFTs comes amid a wider explosion in NFTs, with an Arca report indicating yesterday that the sector has grown faster than any other area in crypto. However, more skeptical observers suggest that the market for NBA Top Shots is ripe for scams, while others argue that the NFT is the next ICO (initial coin offering), and will similarly tarnish crypto’s reputation.
From USD 200 to USD 2,000
Built by Dapper Labs (also responsible for CryptoKitties), NBA Top Shots are NFTs based on the Flow blockchain. They’re officially licensed by the National Basketball Association, and if you buy one, you’ll be getting an NFT which also comes with video highlights of NBA matches and shots, as well as player and game stats.
Officially, packs start from USD 9 and rise to USD 230 in the case of 2020 NBA Finals packs (as well as other special packs). Unfortunately for would-be purchasers, they’ve all sold out, which has led to the appearance of an unofficial marketplace on eBay, where you will now have to pay greatly inflated prices.
For example, Rising Stars packs retail on the NBA Top Shot website for USD 200, but now you’ll need to stump up anything from USD 1,300 to USD 1,990 on eBay. That’s basically a 900% rate of return.
This jump in price is in keeping with the similarly impressive jump in interest NFTs are currently receiving.
Similarly, Jeff Dorman, the Chief Investment Officer of US-based investment management firm Arca, noted that NFT-related tokens have enjoyed greater week-over-week price changes than any other type of cryptoasset. They’ve also enjoyed greater year-to-date increases.
Source: Arca, TradingView, Messari, Bloomberg, CNBC
Such growth follows in the wake of widening public interest in NFTs, with Kings of Leon releasing NFTs for their latest album, and with celebs such as Lindsay Lohan and Grimes also getting involved.
Women are the architects of society. This #NFT is super special as it is a concept from the most iconic work of my career! Representing all the women in crypto who push #Bitcoin to the force it is now. Dropping at 11:45am PT on @rariblecom❤️ pic.twitter.com/cIBQ8xT4tM
— Lindsay Lohan (@lindsaylohan) March 8, 2021
Any problems? Risks?
The rapid growth in NFTs isn’t without its risks. With regards to the second-hand marketplace for NBA Top Shot packs, commentators have already pointed out that you can’t actually send unopened packs via NBA Top Shot itself.
This is asking to get scammed. There’s currently no way to send unopened packs on topshot. So after you pay, the seller has to open it themselves and send each moment individually
— Gains Unlimited (@gains_unlimited) March 8, 2021
More generally, Dorman stressed in his report that “prices are crazy and unsustainable” for many of the NFTs currently doing the rounds, implying that a correction is sooner or later due and that some people (i.e. latecomers) are likely to lose money.
Others have also compared NFTs to ICOs, suggesting that they may end up attracting negative regulatory attention towards the crypto industry.
I see a lot of parallels between 2021's NFTs with 2017's ICOs and 2013's altcoins:
– easy to create new ones with no barriers
– simple to understand & explain
– brings tons of new people into crypto
– high prices & pumps create hype/FOMO
– few will hold & have value, most won't
— Charlie Lee [LTC⚡] (@SatoshiLite) March 2, 2021
Regardless, the seemingly contagious interest in NFTs still might last for some time, if the eBay market for NBA Top Shot packs is anything to go by.
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