Top Shot has a robust and constantly growing community. The vast majority of our collectors are creating a healthy and powerful ecosystem in which owning NBA history is fun, engaging, and rewarding. We constantly look for ways to incentivize our committed community to join this ride for the long run and make collecting enjoyable. In the last 4 months we have sent 24 collectors and their guests to the NBA Finals, 2021 NBA Draft, and the NBA Summer League. We have also created the Nine Lives Lounge, an exclusive club that rewards our collectors who hold the entire Cool Cats set with giveaways and exclusive access.
However, striving to incentivize and grow our passionate community also offers opportunities for bad actors to try to take advantage. To that end, we strive to provide the safest and fairest platform possible for you to collect your favorite Top Shot Moments. That means that we protect your prized collection and your account at all times. But it also means that we protect the platform from people trying to abuse the system, whether it be through fraud or theft from other collectors. To that end, we have updated our policies toward bad actors on our platform and wanted to share some important recent changes.
One of the best ways to protect our community, prevent fraud, and speed up withdrawals, is by verifying the identity of our collectors via our identity check process. As of this week, we have more than 170,000 collectors who have completed their identity check. Our Compliance team has been working hard to make this process as intuitive as possible and will continue making refinements.
For instance, once we have conclusive proof that an account has violated our Terms of Service, that account will lose access to Top Shot permanently. We have significantly ramped up our efforts for platform abusers – 76% of all closed accounts in 2021 have been closed in the last 45 days. And we will continue to be vigilant in combating fraudsters to ensure they are identified and dealt with accordingly.
In addition, any account connected to those accounts will also be thoroughly investigated. If such connected accounts are conclusively identified, they will be closed as well. These efforts are on-going and our internal identification process is continuously improving.
We will also update our Terms of Service, within the next few weeks, with more direct language regarding ownership of multiple accounts and fraud with a clear outline of the actions that will be taken against offenders. Fraudulent behavior will not be tolerated on Top Shot and platform abusers will run the risk of being banned from not only NBA Top Shot, but all future Dapper Labs projects.
To build on our current safeguards, we are continuing to develop automated systems to detect multi-account activity. This will significantly cut down on the time a bad actor has to breach our Terms Of Service.
Moving forward, we’ll test limiting some promotions to one prize per household. We will do this to prevent fraud from happening and we will make it clear in the terms and conditions for the promotion.
Any activity identified as breaking our general terms of service, or these specific terms of any given promotion will lead to penalties including suspension, forfeiture and banning from opportunities to join future Dapper Labs projects. We will strongly enforce this policy.
As we continue to work on these policies and protocols, we will be in contact with more updates.
