A group of crypto fans have come together to form a decentralized autonomous organization (DAO) called Krause House DAO. This online group has a collective bank account and its mission statement includes owning an NBA team.
The group is named after late Jerry Krause, the general manager of Chicago Bulls. About 2,000 members came together and raised cryptocurrency Ethereum equivalent to about $4 million as NFT sales. The crowdfunding operation ended on Thursday morning.
Two factors make it difficult for the group to reach their goal of buying an NBA team, as of now. The first one is that an NBA team generally costs more than a billion dollars. The second reason is that they could have difficulty in convincing the NBA that a crypto collective would be a good owner of an NBA team.
A co-creator of the DAO Krause House spoke to NPR using his pseudonym on the social network Discord. He said that the money raised would be invested into future products. He said that the DAO was focused on its objective of becoming a serious NBA bidder in future. The plan about how the money will be spent is not specific and light on details.
Members of the DAO will be able to vote on where the money will be spent. The final aim of the group is to show franchise owners that the group can provide an effective system to govern a basketball team.
In its Discord community, organizers update the group about activities and sign off with “WAGBAT.” The acronym stands for “We are going to buy a team.”
Earlier, a DAO tried to buy a rare copy of the Constitution but failed. There was a lot of chaos while dissolving the group. A huge amount of money has been lost as high transaction costs which are also called “gas fees.”