It kind of makes sense for booster boxes or high end packs for me. Like, you can’t get a lower grade booster box. A Neo Destiny 1st ed box won’t go below a certain floor even if super beat up, and thus there are people who are simply priced out.
A card though…you can get a 1st ed charizard base for like $4,000 in a very low grade you don’t have to pay $350,000.
My concern is this model will take actual cards out of the market in serious quantities (if this model succeeds in attracting enough people), making collecting for the actual collectors much harder. nothing against finance/making money, but this is potentially very negative for the future supply of certain items.
maybe like NFTs and all these new ideas of ownership, i am just too old school…
youd be surprised, trying to sell my beat up destiny was beyond a pain. If you are not famous and not selling a mint box it could be 1st ed base and people would offer you 30% with a max offer of 50% value
But the low grade 1st Ed. Base Charizard might not give the same ROI as the high grade one. So it’s not as simple as just buying a lower grade one. The high grade one could easily outperform the lower grade one significantly.
The average age is 27 and the average investment sum is $300
Ive been following this quite closely and I think it will be game changing for the higher end cards above 10k usd (collectable has a 12k usd cutoff)
It will take time and the platforms will consolidate over the next few years. They’re still refining the model, in terms of focus areas / exit structure. A coinbase equivalent could eventually emerge for trading cards
Genuinely suggest people go for the higher end cards they want now because it’s not possible to have more ammunition than a fractional platform once they truly take off (although they do have a fiduciary duty to not overbid), and even if they don’t - they have raised so much money over the past six months that you can be sure they will be trying and sucking supply over the next eighteen months at least
I don’t think the low end stuff will be affected as it costs money to convert the cards into an sec registered security; its why the conversation is overwhelming around sports cards as pokemon is mostly too cheap to securitize, but it’s at the cusp of an inflection point in terms of economics
Yeah but you’re also paying most likely a premium for that high end card that they will “value” it at. And fees. I’d argue a $4,000 low grade Zard vs a $4,000 “share of a higher end one” is better.
You can buy it on the secondary market - premium would be gone then. Also they don’t all value it higher; some have a fixed 5% sourcing commission which is partially mitigated by direct purchase vs auctions with BP
Fees are far lower with secondary trading costs at zero to 1.5% per trade
70,000 users that have signed up so far seem to think so. You and I may not like it, but people are diverse. I bet a lot more would sign up once they start getting beckett etc to help them market these products.
There are also alot of benefits to this platform. If you want a card and its price keeps increasing - if they list it, buying its shares gradually would be the ultimate hedge against future price increases.
Think Otis recently listed a psa 10 1st blastoise and 150+ investors bought a stake in it. It was fully subscribed super quick. And it’s still super early innings - once this scales there’s a very real possibility that supply would evaporate; don’t forget the last boom was only driven by a few cards being sold - you don’t need to buy the entire population for prices to go up, only the free float which is a few cards
47.5k usd. Who cares? Just don’t subscribe to the initial offering
Wait for it to trade. If it goes lower buy, if it doesn’t then ignore it.
Mr market offers you a price everyday and it’s up to you when you want to subscribe and when you don’t
Think a venusaur was sold at 20k? A charizard on rally road is being sold at 350k. A full psa 10 1st ed base set is sold at 600k. All quite reasonable
I suggest doing some research first and avoiding a negative knee-jerk reaction, I’ve spent alot of time researching this and it convinced me not to liquidate my side collection
It’s a very simple story. The vast majority of these fractional ownership investors wouldn’t otherwise be able to afford these cards. It’s an addition to the current demand base, a right hand shift to the demand curve while the supply curve is fixed. How big the right hand shift is depends on whether these platforms take off or are a short 2 year experiment
Don’t forget, they’ve raised tens of millions and they make money by recycling that money. So their actual purchasing power is far greater than those millions they raised - as after every ipo they get the money back to recycle it into a new purchase to inject into their exchange
And they are incentivized to make their exchange as deep and as liquid as possible to scale faster than their competitors - it might become a land grab to win market share and that means buying more to put on their platforms
They have no incentive to rip people off right now. They make money through transaction fees when people trade with one another. And I like said, they have tens of millions to burn and they need to build market share as quick as they can and faster than their other five competitors, who are thinking the same thing
“Who cares?” Then ok may as well value it at $500,000 who cares, right?
Lol at “doing some research”, Otis actually reached out to become a sponsor on my YouTube channel in the past month (declined it), well aware of what’s going on in that space.
I’m not saying this isnt easy money. At this stage it definitely is since these companies control the prices and the hype. However, everybody is a genius in a raging bull market. What happens when prices go the other way? How many of these “investors” will stick around? These pieces of cardboard do not have any intrinsic value. They don’t produce revenue or profit. Rally or Collectable or whoever was offering the psa 10 jordan at 750k and now it’s selling at 450k.
No one will subscribe if it was 500k. It sold out at 47.5k, why so bitter? Plus is 47.5k overvalued?
And again so what? It was fully subscribed quickly so clearly there was enough demand. And again if you don’t like the price just don’t buy it or wait for the secondary market to price it to your taste.
Bitcoin crashed in 2017 but the underlying crypto infrastructure continue getting advanced and now coinbase is worth 95bn. Does crypto generate cash flow? Does soy bean on the commodity exchanges generate cash flow? Does gold etfs generate cash flow?
This is not some one year project that the venture capital firms are investing in. This is a long term investment betting that an exchange will exist for collectibles as they do for stocks, commodities and crypto currently
As long as the infrastructure keeps getting refined, it’s bullish
And people lose money on the stock market everyday - it’s still around last I checked
Bitter? Bro you ok? Haha. Super defensive, calm down. Just think they are overpricing these a bit, pretty simple. Logan Pauls packs were overpriced too, doesn’t mean that something has a buyer that it isn’t priced over market.
If a complete 1st ed base set psa 10 is overpriced at 600k then it is what it is. Don’t bs me with the 500k price offer when it never happened
If anything I think those hype box breakers and justripit are the ones ripping people off. So far based on what I’ve seen the pricing on these platforms are been reasonable. And they have to be because they too know that if they screw their customers today they will lose market share to their five other competitors trying to scale and do the exact same thing
These platforms give people a chance to get exposure to an asset they would otherwise never get exposure to due to the entry cost.
And again, there is a secondary trading market - there is no need to subscribe to whatever they ipo at
You are going around in circles. Your last statement makes no sense. Stocks create things, services, make money. Blastoise survives on nostalgia. Why would you want something you can’t see or touch that is down 50% from when you bought it and doesn’t create profits?
If your point is that the collectibles marketplace/trading platform will still exist in the future…of course it will, but I’m asking about actual real world investors, not helicopter money VCs