20/08/2021 DraftKings admits some users got ‘extra chances’ to buy rare Tom Brady NFT

Weston Blasi

DraftKings acknowledges that some users were able to make multiple purchases of a recently released Tom Brady NFT

Tom Brady #12 of the Tampa Bay Buccaneers celebrates after winning Super Bowl LV.

Mike Ehrmann/Getty Images
 

Sports betting operator DraftKings DKNG, -1.07% released a limited series of NFTs last week featuring Tampa Bay Buccaneers quarterback Tom Brady.

DraftKings has acknowledged that the NFT launch did not go as planned after some users were able to make multiple purchases of the sought after Brady NFTs.

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The Brady-NFT launch used a queue system where customers who joined the DraftKings Marketplace were randomly assigned spots in a virtual line. The ones at the front of the line were about to make purchases first.

The problem is, some customers were able to make multiple entries to secure more places in line, potentially utilizing bot software. Using bots to create multiple entries for contests, and thus increasing your chances of winning, is commonly used in limited online releases with products like shoes, concert tickets and other collectibles.

“We are extremely grateful to everyone who joined us on DraftKings Marketplace for our first ever NFT drop this week. It was a tremendous success, and this new technology was a first step in making digital collectables accessible to millions of consumers,” a DraftKings spokesperson told MarketWatch. “We have identified that some people were able to join into the queue more than once, which gave them extra chances to get access to buy an NFT before they sold out.”

One Twitter TWTR, -0.11% user discovered that the account @SweetBabyNicco bought one of each of the five types of Brady-NFTs available for $3,250, and later sold them for $76,332 according to The Action Network. The user did not respond to a request for comment by MarketWatch.

In the same statement, DraftKings said it would rectify the situation by trying to eliminate multiple entries from the same person on future NFT releases, as the company no longer has ownership of the already sold NFTs.

“We are committed to ensuring that our marketplace offers a best-in-class experience for everyone who wishes to buy an NFT on DraftKings Marketplace and will take steps to limit the ability to join the queue more than once before our next drop.”

Future NFT drops on the DraftKings Marketplace will feature iconic athletes such as Wayne Gretzky, Tony Hawk, Naomi Osaka, Derek Jeter and Tiger Woods. Many will feature NFTs that have been virtually “autographed” using each athlete’s unique signature.

Tom Brady and Wayne Gretzky NFTs being sold on the DraftKings Marketplace.

DraftKings/Autograph

A few weeks before the NFT launch, DraftKings CEO Jason Robins told MarketWatch he was “excited” about the revenue and future growth of the company’s NFT marketplace.

An NFT is a verifiable digital asset vouchsafed by blockchain technology. NFTs are not exchangeable like currencies — as each is unique and can’t be replicated.

NFTs use blockchain, the technology ledger backing cryptocurrencies like bitcoin BTCUSD, 1.26%  and ethereum ETHUSD, 2.58%, which are databases of linked information to record ownership or transactions of a product. While NFTs use blockchain, they are not currencies and should be treated more like rare trading cards than money.

DraftKings stock is down 2.9% on Tuesday, but is up 16.9% over the past three months. The S&P 500 SPX, +0.13% is up 6.3% over the same period.

Arts

https://www.marketwatch.com/story/draftkings-admits-some-users-got-extra-chances-to-buy-the-latest-tom-brady-nft-release-11629224905

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