Calaxy Raises 26 Million

SEC Charges Social Token Startup Co-Founded by NBA Star

Calaxy Raises $26 Million

Web3 startup Calaxy, co-founded by NBA star Spencer Dinwiddie, has raised $26 million in a funding round. The company plans to use the funds to develop its social token platform, which allows users to create and trade digital tokens representing their social media presence.

Dinwiddie has been a vocal advocate for the use of blockchain technology in the sports industry. In 2019, he made headlines for attempting to tokenize his NBA contract with the Brooklyn Nets. The move was ultimately unsuccessful, but it helped to raise awareness of the potential for blockchain to disrupt the traditional sports business model.

Calaxy's platform is designed to make it easy for users to create and trade social tokens. The company believes that these tokens can be used to reward fans, build communities, and drive engagement. Calaxy has already partnered with a number of high-profile athletes and influencers, including Dinwiddie, boxer Floyd Mayweather Jr., and rapper Nas.

The $26 million funding round was led by venture capital firm Andreessen Horowitz. Other investors included Coinbase Ventures, Galaxy Digital, and Pantera Capital. The funding will allow Calaxy to expand its team, develop its platform, and market its services to a wider audience.

Disappointing Response to Tokenized Contract Offering

Despite the success of Calaxy's fundraising efforts, Dinwiddie's own attempt to tokenize his NBA contract has met with a disappointing response. In October 2022, Dinwiddie offered 90 tokenized contract shares for sale, but only nine were sold to eight buyers. The total value of the sales was just over $1 million, far short of Dinwiddie's initial goal of $10 million.

The poor response to Dinwiddie's offering suggests that there may be limited demand for tokenized contracts among NBA players and fans. However, it is still early days for the technology, and it is possible that demand will grow in the future.

The SEC's investigation into Calaxy is a reminder that the regulatory landscape for digital assets is still evolving. Companies that are involved in the development and sale of digital assets should be aware of the potential risks and should take steps to comply with applicable laws and regulations.