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Here's What You Need To Know This Week 📝

• Shaq Is Getting Sued Over Astrals Crypto Ownership & Promotion 🏀 

• PBA Launches NFT Rewards Program 🎳

• Professional Fighters League Are Next To Implement NFT Tickets 🎟️

• What To Watch 🎥

• Quick Hype 🎯

Let's Dive Into It 🤿

Shaq Is Getting Sued Over Astrals Crypto Ownership & Promotion 🏀 

The law has finally caught up with NBA legend Shaquille O’Neal.

A few months back he was sued for his involvement with FTX.

This week he was issued another subpoena in connection to his Astrals Project.

A proposed class action filed in Florida federal court this past Tuesday says that Shaq violated securities laws by selling unregistered Astrals tokens.

In 2022, Shaq launched the Astrals Project with his music manager, Brian Bayati, as CEO and his son, Myles O’Neal, as the head of investor relations.

Investor Daniel Harper, who filed the suit, claims that the former NBA star:

“Should have known of potential concerns about regulatory issues concerning the sale of unregistered crypto securities,” but promoted them anyway to further his crypto empire.

Shaq has denied the accusations.

The suit goes into more detail about Shaq’s promotion of the Astrals Project.

In a series of NFTs called the “Shaq Signature Pass,” he stated that “there will only ever be 50 of these in existence” and could only be earned by participating in the community or bidding on Astral tokens.

The promotion also stated, “The Shaq Signature Pass is the first consumable NFT of its kind, and the signing technology is one that we think will have wide-ranging applications.”

Shaq frequently advertised Astrals NFTs on his various social media accounts, per the complaint.

In one, he also urged investors to “hop on the wave before it’s too late.”

Investors say that there’s been a “steep drop” in Astrals tokens’ floor price since.

The suit also claims Shaq used the Astrals Project to promote FTX, which he issued to boost his own credibility.

Shaq is one of several celebrity defendants named in a suit against FTX founder Sam Bankman-Fried and other stars who endorsed the platform.

He has appeared in ads for FTX in the past and has been trying to distance himself from the company by saying in December that he was “just a paid spokesperson.”

Apparently, Shaq has also been dodging being served, with lawyers for the investors saying they’ve been trying to give him the papers outside of his home, workplace, and car for months.

The question of whether Shaq sold unregistered securities will be viewed through the Howey Test which is a standard that emerged in a 1946 Supreme Court case for determining whether a transaction qualifies as an investment contract.

The suit alleges that Astrals NFTs meet all the criteria to be considered a security.

Shaq was served both lawsuits right before Game 4 between the Celtics and Heat which he was covering for TNT.

PBA Launches NFT Rewards Program 🎳

The Professional Bowlers Association (PBA) and its parent company, Bowlero, are initiating ‘The League Bowler Certification Awards’ (LBC) in an effort to reward players with NFTs.

LBC will use NFTs on the Avalanche chain to acknowledge specific bowling achievements.

NFT Rewards In The Form Of Soulbound Tokens

This PBA and Bowlero initiative targets around 300,000 league participants.

Powered by Layer 3 Labs on a dedicated Avalanche subnet, the LBC ensures smooth operation, allowing bowlers to easily earn NFT rewards without using cryptocurrency.

Unlike standard NFTs, these NFT rewards are Soulbound tokens.

In other words, they are non-transferable and non-saleable.

These awards will celebrate various bowling milestones such as:

• Bowling a 200-game

• Attaining a perfect 300-game

• Reaching a 700 series or an 800 series

• Scoring 50 or 100 pins above the players’ average

To earn these NFTs, bowlers will need to hold active PBA’s LBC program membership and a LeaguePals account.

In the second phase of this initiative, the PBA’s LBC Awards program will introduce a dynamic points-based system.

Aside from earning distinctive NFT rewards, bowlers will need to accumulate points for each achievement, which can be redeemed for exclusive offers and prizes.

The Companies Behind This Project

Layer 3 Labs is a leading entity in transitioning traditional web2 brands to web3 and has been pivotal in helping to launch this rewards system.

By using an Avalanche subnet, they aim to eliminate potential congestion issues.

Because the players don’t have to own or use cryptocurrency to receive these NFT rewards, this ensures that all league participants, even those unfamiliar with blockchain, can benefit from the awards system.

Moreover, it showcases the extensive potential use cases of on-chain digital assets especially for sports brands and entities.

Professional Fighters League Are Next To Implement NFT Tickets 🎟️

We’ve talked about ticketing as a use case for NFTs in several past reports.

That use case continues to become a reality as more companies get involved.

This week, the Professional Fighters League (PFL) became the next brand to adopt the technology.

The PFL, which features a season format that differs from the UFC, partnered with Web3 firm CrossTower to roll out NFT tickets powered by Ripple’s XRP Ledger.

The launch of the tickets will overlap with the start of the 2023 fighting season.

Many exclusive add-ons are included in the NFT VIP tickets including:

• Cage-side seating

• Attendance of pre-fight weigh-ins

• Meet and greets with fighters from the PFL

• Ring walk experiences, and more

As you know many other sports brands have already tested the waters with NFT ticketing.

The NFL with Super Bowl LVI featured commemorative NFT tickets for every fan at no cost, allowing spectators to mint their own customized NFT tickets to signify the event.

In December 2021, World Rugby started talks about and explored the use of NFTs.

The 2023 Rugby World Cup is set to be hosted in France, but the organization hasn’t made any official announcements about the role of NFT ticketing for the event yet.

Paris is set to host the 2024 Olympics, and NFT tickets have also been discussed there to improve crowd control and experience.

Not to mention, a few weeks ago Sports Illustrated released its own NFT ticketing solution in May 2023 called Box Office, which offers self-service event management and ticketing solutions in partnership with ConsenSys.

What To Watch 🎥

Scott M. Lawin is the CEO & COO of Candy Digital.

This is a super interesting conversation with Crypto News where he discusses:

• The future intersection of web3 and sports

• The impact of NFTs on fans in the digital landscape

• How NFTs will influence content creators

• How Candy Digital goes about community building and forming partnerships

Before Candy Digital, Lawin founded Parametric, a private investment and advisory firm focused on early-stage opportunities in blockchain, fintech, art, and real estate, and was also the COO of Moore Capital Management, a $15bn global alternative investment management company.

Check out the full interview below:

Quick Hype 🎯

How is blockchain technology applied effectively in the sports industry?

What happened to Tom Brady's NFT startup? Autograph lays off 33% workforce fresh off 'TB12 store' fiasco and FTX scandal.

Sorare carves out a unique entry method for France due to NFT regulations.

Fanatics continues to push into collecting space with the acquisition of PWCC.

Chicago Sky is tapping into artificial intelligence with a new partnership alongside GameOn Technology.

Meta’s latest job cuts include several top sports executives.

French Open to provide players with AI cyberbullying protection.

Pomerium secured a $20 Million angel investment and got listed on Bitget.

Thanks for reading!

Talk to you again next week,

Malcolm

This newsletter is for informational purposes only and is not financial or business advice in any capacity. The information shared is my thoughts & opinions and does not represent the opinions of any other person, business, entity, or sponsor.

The contents of this newsletter also should not be used in any public or private domain without the author's express permission. The contents of this newsletter should not be used for any commercial activity, for example, research report, consultancy activity, or paywalled article, without the author's express permission.1