Spencer Dinwiddie, a professional basketball player for the Brooklyn Nets of the National Basketball Association (NBA), has raised $1.35 million via a security token offering backed by his contract.
The amount raised is just 10% of Dinwiddie's target raise of $13.5 million. There were 90 tokens available for sale, each priced at $150,000, but only nine got sold.
Eight investors bought the tokens, according to Form D filed with the Securities and Exchange Commission on Wednesday. There likely won't be any further rounds of the sale. Tritaurian Capital, which Dinwiddie appointed as his broker-dealer in March, oversaw the sale and closed it.
It is not clear why the sale received a lackluster response. The token offering gained much hype when it was initially revealed but later fizzled out as the player faced criticism from the NBA, including a threat to ban him from the association, and then he had to revise the offering.
It is also worth noting that Dinwiddie tested positive for coronavirus last month and opted out of the NBA's restart after the second positive test earlier this month.