DraftKings (NASDAQ:DKNG) stock is in a tailspin. It’s down more than eight percent today, extending…
Posted on: June 11, 2021, 01:22h.
Final up to date on: June 11, 2021, 02:36h.
Todd Shriber Learn Extra
For apparent causes, not the least of which is the 37.18 p.c acquire over the previous yr, it’s good to personal plenty of DraftKings (NASDAQ:DKNG). Simply ask Shalom Meckenzie, who plunked down $11.8 million on a non-fungible token at a Sotheby’s public sale on Thursday.
A duplicate of the CryptoPunk 7523 NFT. The true factor was bought for $11.8 million by a DraftKings board member. (Picture: U. Right now)
The DraftKings board member paid that tidy sum for a digital piece of artwork referred to as “CryptoPunk #7523” — a part of a 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 items 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 purposes with quite a lot of digitized gadgets, similar to audio and video information, in addition to photos.
The DraftKings director purchased CryptoPunk 7523 through a digital public sale. However replicas of the collection of works will be seen by most of the 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. Cofounder 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 the use of him founding SBTech, an Israeli sports activities betting know-how platform supplier that got here collectively final yr with DraftKings in a reverse merger with a particular function acquisition firm (SPAC). The transaction set the stage for the mixed entity to go public as DraftKings.
Primarily based on his stake within the firm as of Might 4 and the inventory presently 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 facet of the sports activities betting world was concerned with NFTs.
In April, Barstool Sports activities auctioned off an NFT referred to as “One Chunk Pizza Evaluation of Blocks Pizza Deli (Miami) — That includes Man With No Arms.” The picture incorporates founder David Portnoy conducting one in all his famed pizzeria evaluations. That digital work offered for $138,160.
NFTs burst onto the scene earlier this yr, and the followers of market hypothesis have been stoked when a digital work was auctioned by Christie’s at $69.3 million. Sotheby’s offered a bit of digitized artwork by the artist “Pak” in April for $16.8 million.
Whereas the still-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 activities betting knowledge supplier Sportradar, is a vocal proponent of the NFT market, saying it holds long-term potential.
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