Hey! Yes I can absolutely comment on it. I understand that the fees can be steep.
Here’s a quick rundown of the fees:
Offering Fee - 8% to buy
MarketPlace - 2.5% on all buys and sells
Deposits - varies depending on the type of deposit. CC is 5%, Crypto is free.
Now we can break them down to where the fees are going:
Market Maker - third party company that runs the market. The take a fee on all buys, sells, and at Offerings.
Storage and Insurance - insurance costs are extremely high for collectibles. We also update the insurance quarterly which adds to the cost.
Payment Provider - we use Stripe for CC payments.
Foreign Exchange - we also add a percentage to the CC deposit fee to essentially create a buoy for FX changes. Stripe and FX make up the entire CC fee.
Costs - we have to also charge to pay salaries (20+ people in office daily), keep the lights on, etc. Not to mention marketing, acquisition costs, business development, etc.
The fees can be comparable to eBay, PWCC, Goldin, etc though. If you bought a bunch of cards on eBay for example, you don’t explicitly pay any fees since the seller is paying the 13% (less for bigger sellers of course). But when you want to sell your cards, you pay that fee out of what you get. So already you do have to anticipate profits above ~15% for it to be worth it. And that doesn’t even factor in tax, s&h, etc, which are all things that are covered in our fee (or don’t exist on out platform, like shipping). Goldin and PWCC also pass the fee onto the buyer with their BP, and it is in a similar % range.
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Logan - buys worlds most expensive and historic Pokémon card; talking about how incredible it is to own and hold such an important item, seems emotional and genuinely excited.
Also Logan - lemme just lock this away where it will never see the light of day again and make himself the last true “owner” of the grail of the hobby.
I know a $5M collectible is unobtainable to 99.99% of collectors anyway, but something about it being fractionalized and vaulted away feels pretty off-putting. It was cool to see it come to public eye but I’d kinda prefer it had stayed the card of myth and legend that a mysterious collector had somewhere on earth over this. We didnt need Illustrator Token Crypto
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pfm
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Just to play devil’s advocate for a second, what’s the other option? He could put it in his private home such that only himself and his guests could enjoy it
Instead he decided to create as much exposure for it as possible and also allow people who would otherwise not be able to interact with it to get involved.
Don’t get me wrong, I can also understand how greasy it looks too, primarily because the fractionalization is associated with NFTs (scams and rug pulls). I’d just rather take the more optimistic path and say that exposure at this level is a net positive and while it may not be for me, I’m ok with others doing their own thing.
This experiment could ultimately be a huge failure but until that happens, I have no problem with it and just allow it to settle into the background noise of this hobby
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Hi Avik, thanks for the detailed answers. It certainly gave me a clearer understanding of how your platform is supposed to work and what to expect from it. That’s really all I can ask from you.
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