NBA Top Shot sells officially licensed video highlights, called Moments, as NFTs in randomized packs, then lets collectors trade them on a built-in marketplace. It was built by Dapper Labs on its own Flow blockchain, with card payments and a managed wallet so fans never had to touch crypto. The license is what made it work, and it is also the part you cannot copy with code.
How Top Shot works
- Moments. Each Moment is a short licensed video highlight, issued in a numbered edition within a set. Rarity tiers (Common, Rare, Legendary and others) control edition size. Low serial numbers and a player's own jersey number command premiums.
- Packs. New Moments are sold in randomized packs during scheduled drops. Demand in 2021 was so high that drops used virtual queues with hundreds of thousands of people waiting.
- Marketplace. Collectors list and buy Moments from each other, with Dapper taking a fee on each sale.
- Challenges and sets. Completing sets or specific lineups earns rewards, which gives collectors a reason to buy specific Moments rather than just speculate.
- Flow and Dapper wallet. Moments live on Flow, a chain Dapper built after CryptoKitties congested Ethereum in 2017. Flow's Cadence language treats NFTs as "resources" that cannot be copied or lost by accident. Users get a managed Dapper account with card payments and a dollar balance.
Boom, bust and the lawsuit
Top Shot's public launch in late 2020 grew into one of the biggest NFT products of 2021. Prices then fell sharply as the market cooled. Collectors also complained about delays withdrawing dollar balances during the peak.
A class action argued that Moments were unregistered securities, partly because Dapper controlled the marketplace and the chain. A federal court allowed the claim to proceed in 2023, and Dapper settled in 2024 without admitting wrongdoing. The case is a useful reminder that a closed, platform-controlled ecosystem can strengthen a securities argument.
What to copy
- Licensed content. Official league, team or player rights are the value. Without them, you are selling clips you do not own.
- Fan-grade onboarding. Email sign-up, card payments, no seed phrases.
- Sets and challenges. Collecting goals create demand for specific items across rarity tiers.
- Serial-number design. Numbered editions turn identical clips into distinguishable items.
What to do differently
- Allow self-custody and outside trading from the start, with royalties enforced at the contract or chain level.
- Avoid investment framing. Market Moments as fan collectibles, not returns.
- Size editions conservatively. Oversupply in later series pushed prices down.
- Plan payout operations so balance withdrawals keep pace with demand spikes.
Components of a licensed sports marketplace
| Component | Notes |
|---|---|
| Rights and licensing | League, team, player association and broadcaster rights for video, names and likenesses |
| Collectible contracts | Edition-aware NFTs with set, tier and serial metadata |
| Pack system | Verifiable randomized pack contents, scheduled drops, queueing |
| Wallets and payments | Embedded wallets, card payments, KYC for payouts |
| Marketplace | Listings and offers by player, team, set and serial |
| Challenges engine | Rules, eligibility checks, reward distribution |
| Video pipeline | Clip production, transcoding and delivery |
Dapper's model has been extended to other leagues, such as NFL ALL DAY. For other chains, see NFTs on Flow and our broader guide to sports NFT marketplaces; for a fantasy-game variant, the Sorare teardown.
Build sequence and effort
- Secure rights with the league, players' association or rights holder, including revenue share and approval processes for content.
- Design sets and tiers: edition sizes per tier, release cadence and challenge rewards, modeled for long-term supply.
- Build contracts for editions with serial numbers, plus a pack contract that assigns contents with verifiable randomness.
- Integrate embedded wallets and card payments with KYC for payouts.
- Build the marketplace and challenges engine, then load-test drop queues.
- Get legal review on packs (some jurisdictions treat paid randomized packs like loot boxes) and on how collectibles are marketed.
As a reasoned estimate, the technical build is roughly five to eight months for a team of four to six engineers plus design, assuming licensed video is supplied by the rights holder. Licensing negotiations often take longer than the build.
Frequently asked questions
Can I build a Top Shot-like product without a league license?
Not with real players' highlights. You could build around amateur or lower-tier sports with their consent, or around original content, but unlicensed clips of pro athletes invite takedowns and lawsuits.
Do I need to use Flow?
No. Flow suits consumer collectibles and has Dapper's tooling, but EVM chains with embedded wallets and account abstraction can provide similar onboarding.
How are pack contents kept fair?
Assign contents using verifiable randomness and publish the odds per tier. Collectors should be able to audit that packs matched the stated distribution.