11/21/2023 0 Comments Alts stockThe results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained. Backtested performance is not an indicator of future actual results. Justin Birnbaum contributed reporting to this article.Disclaimer: The TipRanks Smart Score performance is based on backtested results. “For Gen Z digital natives, NFTs as a medium make so much sense because they don't have nostalgia.But in the meantime, financial wealth is largely concentrated among the older folks who have a nostalgia factor,” he says. Ohanian is betting that fond childhood memories will blow wind into Alt’s sails for the time being. Avidar is steadfast in his belief that the digital and physical collectibles markets overlap minimally, and he says he has no plans to incorporate NFTs into Alt anytime soon. To Hummer, NFTs represent “pure substitutes” for physical collectibles. A Lebron James Moment recently sold for more than $200,000. Each Top Shot “Moment” is essentially a virtual trading card, but technically it is a video clip from a sliver of NBA history that gleans its authenticity and scarcity from its NFT. Launched five months ago, NBA’s Top Shot business booked nearly $300 million in sales over the past 30 days, according to crypto tracker CryptoSlam. The recent popularity of non-fungible tokens (NFTs) using blockchain technology in the sports arena raises questions about the long-term viability of something as mundane and old-fashioned as trading sports cards derived from dead trees. Startups like StarStock, which in December closed a $1.3 million seed round backed by Kevin Durant, and Whatnot, which hosts frequent trading livestreams, and just raised a $20 million Series A, have marketplaces that loosely resemble Alt. With about 75,000 customers, Otis sells shares of trading cards, sneakers, comics and even a $75,000 work of art made out of medical bills. Otis, with about $14 million in funding since 2019, aims to become the “Nasdaq for culture,” according to CEO and founder Michael Karnjanaprakorn. is a high-profile player that lets investors buy and sell chunks of collectibles ranging from Lamborghinis to Birkin handbags (and sports cards, too), raising $27 million since 2017. Several other startups exist for investing in collectibles, but most break expensive assets down into more palatable shares. “Investing passively in a plot of farm land will be as easy as buying a share of stock.” “In the future, anything that has value will be securitized, fractionalized and tradeable on an exchange,” Hummer writes in an email. So it felt a lot more innate to get excited about this.”Īlt’s emergence reflects a wider democratization of investing in all types of asset classes, says Merritt Hummer, a fintech-focused partner at Bain Capital Ventures. “I was definitely a hobbyist as a kid, whereas Bitcoin was not a thing I could have collected when I was younger. “I could not unsee the experience I had investing in Coinbase combined with my own, let’s say, irrational excitement around the asset class of trading cards,” Ohanian says. Having used spreadsheets to manage his personal card collection, Ohanian remarks that Alt is sitting on a similar goldmine for collectibles. (The company is currently preparing to go public at a reported $100 billion valuation.) At the time, Ohanian says that the brightest minds investing in Bitcoin were managing portfolios with spreadsheets-until Coinbase stepped in to create a better platform to buy, sell and oversee these cryptocurrency holdings. Alexis Ohanian, who launched his latest venture capital firm Seven Seven Six in September with a $150 million fund, likens Alt’s potential to that of a nascent Coinbase, where he made an early bet in 2012.
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