Steph Curry’s 2,974 NFT Collection Future Uncertain After FTX Crash – Sportico.com

Last July, Brent Natsume realized he needed to work on his jumper. In a few days he will face Steph Curry. And he wanted to shoot hoops with him.

Natsume was one of about three dozen owners of Curry’s 2,974 Collection of NFTs who were invited to an all-expenses-paid trip to San Francisco that would include a community service opportunity, dinner and shootaround with the NBA’s 3-point king.

“I didn’t want to embarrass myself so I got my ass to the court a bit,” Natsume said.

The day was everything Natsume had hoped for. With the benefit of hindsight, you might even say it was too good to be true. Natsume still thinks a lot about his time with Curry—watching his jumper up close, realizing how down-to-earth he was, talking about fatherhood. “Never will I ever forget that,” Natsume said. But he also remembers another VIP who was there that night: former FTX CEO Claire Watanabe.

Initially, Curry’s NFT project provided evidence of what blockchain technology could bring to sports fans, rewarding believers with a sense of community and once-in-a-lifetime moments. Curry’s so-called “2022 Birthday Celebration” exemplified that. But talk of potential future meet-and-greets among collectors took a sudden turn in November, when FTX, Curry’s sponsor and the project’s technical supplier, surprisingly went bankrupt.

“I always wondered how this project had the money to fund it,” Natsume said. “As, Damn, they actually spent a ton of money on this. I don’t know how sustainable that is.”

The implosion also forced a showdown for the entire movement. What was crypto, really? A new technology that can bring the Internet together? Or was it a poorly understood investment hype bubble? And when the promotional dollars ran out, what was left?

Days after Curry broke the NBA’s all-time record for career 3-pointers made in December 2021, he released a collection of 2,974 NFTs, each representing a different brand. Two hundred of the digital collectibles were reserved for Curry’s former teachers, coaches, friends, rivals and mentors. The rest were sold in a surprising fall.

Joe Chui immediately bought two of them. He asked several friends to come in as well. Another exclusive NFT collection, the Bored Ape Yacht Club, rose in price, with the cheapest versions selling for $250,000 at the time.

Curry’s NFTs were only $500 each to start. They sold out in minutes. Curry’s Eat.Learn.Play Foundation received a large portion of the proceeds, earning $2.1 million on launch day. Within two days, the secondary market price doubled. On the fourth day, Christmas Eve, the NFT representing Curry’s record-breaking tree sold for $1 million at auction.

“Not many celebrities came out with their own projects,” Chui said. “So we all thought this was going to be big — and it was big.”

Some bought in just to flip the NFTs to make money, but many others held on and believed in the long-term vision. “The 2974 Collection will surprise NFT holders in the future with gifts that may include autographed memorabilia, tickets to games, additional NFT drops and early access to limited edition Curry Brand merchandise,” the project’s website explained at the time.

Holders quickly received a bonus NFT with one of Curry’s remarkable buckets. There were many physical benefits as well.

“People were getting autographed shoes from Steph, or autographed trading cards,” said one collector, who asked to be referred to by their online username, outlawtorn. “It really created this wonderful community of people who were fans of Steph or fans of the Warriors.”

Collectors regularly gathered in an online chat room during Warriors games — and on days off — to chat about Curry and the project. Before and after Game 4 of the NBA Finals, when Curry scored a series-tying 43 points, he wore a mysterious hoodie with a hand making the three-point symbol and Hebrew letters that appeared to spell out “love never fails.”

It turned out that the hoodie was exclusively available to 2,974 collection holders. Those with multiple NFTs will even get a discount. The equipment came with a note from the finals MVP.

“Knowing that there are projects out there that can really provide real benefits with real experiences that allow people from all over the world to come together,” Natsume said, “I think that’s everything that web3 and these NFT projects are trying to achieve.”

Engaged community members also heard rumors that Steph’s Bay Area event would be the first of several, and perhaps even an annual tradition.

FTX’s commitment was clear from the start. Curry had announced a larger partnership with the company in September 2021, taking an ownership stake after Tom Brady signed his own FTX deal. Sam Bankman-Fried’s startup was already valued at more than $18 billion at the time.

Curry’s collection was sold using FTX’s marketplace, which required users to set up a wallet for that exchange to purchase the collectibles. FTX also hosted the group on its own Discord server. And notably, to be eligible for the project’s various rewards, owners had to keep their NFT on FTX’s platform instead of moving it elsewhere.

“We also knew they were probably trying to use this to prop up the marketplace,” Outlawtorn said. “They were trying to attract attention and get people to come in and use it, because you could tell from using it that no one was transacting on the FTX NFT market.”

2974 backers mostly understood the deals they were making. The project could have benefited from the exposure of being on a more popular marketplace, such as OpenSea. But FTX also put in a lot of resources, such as sponsoring the summer tour, which outlawtorn was also invited to and called “the most incredible experience of my life.”

The experience started with a bag full of exclusive items and a $250 Visa gift card. Curry appeared while guests volunteered at the Alameda County Community Food Bank. “Everyone is just kind of in shock,” Natsume said. “I was the first person to push him.”

Next stop was the Warriors’ former training facility in Oakland, where Curry ran some drills before putting on a knockout contest. Natsume’s preparations paid off, as he lasted long enough to meet the Warriors guard.

“We’re all trying to figure out the order and nobody wants to be ahead of Steph, obviously,” Natsume recalled. “So I volunteered to be in front of Steph, because I thought if I’m going to get knocked out, I want to be knocked out by the GOAT.”

Sure enough, Curry, in a black shirt and blue joggers, added that knockout contest to his list of victories with a leisurely 28-footer. “But I mean, the experience of a lifetime,” Natsume said. His second favorite moment of the day came that night, when Curry dined with the group at Ayesha Curry’s restaurant, International Smoke. “It was surreal,” he said. “We just had a regular dinner with him.”

The money used for the project was shown that day, Outlawtorn says, before interrupting himself. “Unfortunately, we found out that it was the customers’ money, right? – so that sours the experience a bit.”

Wait wait wait… FTX FAILED ?! someone please pick me upwrote a chatter in the Curry Project Discord channel on the afternoon of November 12, 2022, a day after the company, once valued at $32 billion, filed for bankruptcy. So I just lost $500?, another called in.

“A few people started panicking and pulling NFTs,” outlawtorn said. “The mods in there at one point gave an indication that something was about to happen and it would be smart to get your stuff off. And then like two hours later, it all shut down.”

Some collectors managed to move their Curry NFTs to other servers before FTX’s exchange completely disappeared, but many were not so lucky.

“I was one of those guys who thought FTX is too big to fail,” said Milosz, a 2974 collector who asked to be identified only by his first name. “FTX was supposed to be rock solid.”

Unlike other NFT marketplaces, FTX had built what is called a “custodial” platform, meaning that it held its users’ NFTs in its possession until someone transferred them to an external wallet. The tokens were then among the many that were handed over in the bankruptcy proceedings. Other affected projects include the Coachella concert festival.

On Discord, users talked about reviving the project on another platform by having previous holders verify their ownership to receive an identical NFT minted elsewhere. But then that begged the question: If the endeavor wasn’t actively supported by Curry and his circle, what were those things worth?

“Let’s take it easy here friends,” outlawtorn wrote on Discord amid the chaos. “We will stay strong and find a way forward, but it may take some time.”

The Curry crew were far from the only ones asking questions. More than 1 million people may have lost their money as a result of the stock market collapse. Investors like Tom Brady may have lost more than $40 million in value.

Law enforcement officials had their own questions. Bankman-Fried has pleaded not guilty to federal charges of money laundering, conspiracy to commit wire fraud and securities fraud. The Wall Street Journal reported that SBF’s Alameda Research firm used $10 billion of FTX customers’ money to make risky crypto bets. Replacement chief John J. Ray described a “complete failure of corporate control.” Watanabe’s name also reappeared; She reportedly pushed for a $100 million partnership with Taylor Swift.

Questions eventually caught FTX’s advocates — stars like Brady and Curry. They were among those named in a lawsuit that claimed the platform “was designed to take advantage of unsophisticated investors.” Texas undertook its own investigation into the firm’s endorsements.

Beyond the NFT partnership, Curry had starred in a nationwide ad for the company, proclaiming, “With FTX, I have everything I need to buy, sell and trade crypto safely.”

Months later, the 2974 Discord still exists, though chatter is quieter these days. People have been debating the tax implications of their missing NFTs. Some check in periodically to see if there have been any updates. Others continue to use the space to talk about Curry and the Warriors; few seem to hold a grudge against them.

The project may be in a “deep sleep,” as outlawtorn put it, but the international community that had gathered there for nearly a year was still around. Grassroots leaders even revived trivia games for 2,974 owners. Without Steph Curry’s hand to sign any gear, a store-bought SC30 hat was given as a reward instead. That night’s winner decided to turn around and offer the hat to the next champion, and so on.

“It’s a sign of — you know, a lot of people came together on this,” Outlawtorn said. “It’s just incredibly sad how it was ripped away from us through no fault of anyone … related to the project.”

Curry himself has not spoken about the project since FTX went bankrupt. Legal proceedings only complicate any kind of mea culpa or compensation he could offer the fans who spent hundreds of dollars to get closer to him through the collection. Curry’s representatives did not respond to recent requests for comment. FTX executives could not be reached for comment.

FTX’s implosion has put a wider damper on crypto’s influence in sports. New projects are still released, but many shy away from the concept of NFT altogether, and the pace of experimentation has slowed considerably. Only one NFT group, DigiDaigaku, had the guts to advertise during this year’s Super Bowl.

Discord mainstays got a glimmer of hope in January, when Ray expressed openness to the idea of ​​bringing FTX’s exchange back online. “If there’s a way forward on it,” he said, “then we won’t just explore it, we’ll do it.”

Bankman-Fried, meanwhile, continues to maintain that the US arm of operations “is solvent” and could potentially return assets to its customers. FTX’s FTT token is up 80% in 2023, although it is still down 90% from November.

“Hope springs eternal,” said the outlawtorn. “And for people who are interested in continuing to be a part of the community, we’re trying to keep it open as a place that’s there in hopes that something happens again in the future.”