Posted on: June 11, 2021, 01:22h.
Final up to date on: June 11, 2021, 01:22h.
For apparent causes, not the least of which is the 37.18 p.c achieve over the previous 12 months, it’s good to personal quite a lot of DraftKings (NASDAQ:DKNG). Simply ask Shalom Meckenzie who plunked down $11.eight million on a non-fungible token at a Sotheby’s public sale on Thursday.
The DraftKings board member paid that tidy sum for a digital piece of artwork often known as “CryptoPunk #7523” — a part of coveted collection of non-fungible tokens (NFTs) produced by Larva Labs in 2017. To be exact, Meckenzie paid $11.75 million for the NFT.
NFTs are models of information saved on and verified by the blockchain, that means Meckenzie isn’t receiving a bodily piece of artwork to be held on a wall or displayed in a museum. NFTs have functions with quite a lot of digitized gadgets, akin to audio and video recordsdata in addition to footage.
The DraftKings director purchased CryptoPunk 7523 through a digital public sale, however replicas of the collection of works will be seen by most people at Sotheby’s exhibitions in Hong Kong, London and New York, experiences Reuters.
Meckenzie Can Afford Such Indulgences
As of Might 4, Meckenzie owns 22.38 million shares of DraftKings fairness, making him by far the biggest investor within the widespread inventory. Co-founder and CEO Jason Robins controls roughly 92.5 p.c of the voting inventory within the sportsbook operator.
Meckenzie’s involvement with the corporate comes by way him founding SBTech, an Israeli sports activities betting know-how platform supplier that got here along with DraftKings in a reverse merger with a particular objective acquisition firm (SPAC) final 12 months in a transaction that set the stage for the mixed entity to go public as DraftKings.
Primarily based on his stake within the firm as of Might Four and the inventory at present hovering round $53, Meckenzie’s funding within the gaming fairness is value $1.18 billion — sufficient to make him one of many richest males in Israel.
Not First Time NFTs, Gaming Meet
Meckenzie’s CryptoPunk purchase isn’t the primary time a well known determine from the enterprise aspect of the sports activities betting world was concerned with NFTs.
In April, Barstool Sports activities auctioned off an NFT known as “One Chunk Pizza Evaluate of Blocks Pizza Deli (Miami) — That includes Man With No Arms.” The picture incorporates founder David Portnoy conducting one among his famed pizzeria critiques. That digital work offered for $138,160.
NFTs burst onto the scene earlier this 12 months and the followers of market hypothesis had been stoked when a digital work was auctioned by Christie’s at $69.three million. Sotheby’s offered a bit of digitized artwork by the artist “Pak” in April for $16.eight million.
Whereas the nonetheless nascent NFT market cooled a bit, it has supporters from elsewhere within the sports activities business. For instance, Dallas Mavericks proprietor Mark Cuban, who’s additionally an investor in sports betting data provider Sportradar, is a vocal proponent of the NFT market, saying it holds long-term potential.