DAO Aiming to Buy NBA Team Has Quickly Raised $1.7M in Ethereum

ConstitutionDAO came close to buying a $43.2M historical document. Krause House is targeting something far more expensive: an NBA franchise. Read the full article by: Jason Nelson

Key Points:

• DAOs are becoming a hot topic around the Defi space in recent weeks as what some are trying to accomplish is starting to turn heads. From CityDAO buying land in Wyoming to make the first city run fully by a DAO to Pleasr DAO buying the Wu-Tang album that is not to be released for years it is getting peoples attention.

• Krause House, named after legendary Chicago Bulls general manager Jerry Krause, is aiming to be the first DAO to own and operate and NBA franchise. They started in May and met there initial goal of 200 ETH in 15 mins of launching the sale.

• While it will cost them somewhere in the billions of dollar range this is where the DAO becomes important. It would be basically impossible for an individual to purchase an NBA franchise but with a DAO it is a way that you can crowdsource funds and delegate power to those investors as well if the purchase is made.

• Teams have had multiple owners in the past so the idea is not new but the amount of owners would obviously be greater and may be tough to control. Some of the people that bought into the DAO are also being cautious and realistic about their expectations of actually being able to purchase a franchise.

• “I think we have a long way to go to actually buy an NBA team, but there is so much we can do along the way to prove that this type of model can work," Krause House contributor Mick Hagen told Decrypt via Twitter. "To show that when fans become owners, they become a lot more active and engaged which ultimately can lead to better outcomes for the team... and the underlying business."