Dapper Labs has closed a $12 million financing round led by National Basketball Association (NBA) stars Spencer Dinwiddie, Andre Iguodala, JaVale McGee, Aaron Gordon and Garrett Temple, according to a press release shared using Fintech Zoom.
The capital will be utilized for additional evolution of blockchain games such as the ultimate launching of NBA Top Shot from beta, Dapper Labs founder and CEO Roham Gharegozlou informed Fintech Zoom in a telephone interview.
“Sports are our most important vertical now,” Gharegozlou said.
NBA Top Shot runs to the developer’s custom Flow blockchain. The company pivoted off the Ethereum blockchain because of scalability concerns after the 2017 CryptoKitties debacle.
The round was also joined by fresh venture capital companies like Coinbase Ventures and present spouses Union Square Ventures and Andreessen Horowitz (a16z) Cultural Leadership Fund – the offshoot’s initial investment – amongst others.
Dapper Labs has increased $51 million thus far in seven rounds, based on Crunchbase.
As first reported by The Block, NBA Top Shot fell $1.2 million in earnings three months following Beta trial launching. The program allows basketball lovers to buy officially licensed digital tokens of NBA player rosters very similar to some trading-card game.
“Flow can create the vehicle for consumers to enter the space through products like NBA Top Shot where they have fun, but at the same time create a new self-sovereignty,” Dinwiddie said in a statement.
NBA players such as Dinwiddie and McGee are unfamiliar with cryptocurrency investments. Dinwiddie experimented with tokenizing his NBA contract to the Ethereum blockchain while McGee had been an early investor in bitcoin, based on Gharegozlou.
Iguodala has seen some success as a fintech investor too; he comprehended Zoom’s possible long until it turned into a pandemic small business staple.
“Blockchain technology has the potential to revolutionize consumer ownership on the internet,” Iguodala said in a statement. “Projects like Dapper Labs’ Flow are already driving consumer adoption, with NBA Top Shot proving the experience is not only engaging, but smooth and fan-friendly.”
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