Mint Condition - March 31, 2021
Crypto enters sports auctions -- High-end wax dropping -- Collectible 2.0 event @ 1pm ET
Good Morning Squad:
Leading Off
Sports Auctions x Cryptocurrency: Goldin Auctions announced yesterday that it will allow bidders to use Bitcoin and Ether when trading on its platform. As crypto continues to receive mainstream press coverage, it is not a surprise this was covered by the likes of Bloomberg and The Athletic. What the news didn’t cover is how this development affects the various stakeholders within the hobby. We break it down below:
Auction Houses: The added hype is clear and plays into this type of decision, whether they admit it or not. Simply associating yourself with crypto or blockchain boosts your profile (and if you are a public company, your stock price). Auction houses hope to expand their customer base and grow profits, as crypto collectors will have a new way to invest their holdings. Conversely, auction houses now open themselves up to risk: cryptocurrency values are volatile and based on crypto’s conversion rate to U.S. Dollars (or other ‘fiat’ currencies), these auction houses could receive less value for certain items as the conversion rate weakens. This will directly impact their bottom line, as they are taking on this risk, not the buyer or seller within the auction
Buyers: Auctions for sports memorabilia and cards might become even more competitive. The number of Bitcoin- and Ether-focused investors who previously have not invested in sports is numerous, and now these auctions are fair game for them. Investors view crypto as a ‘hedge’ against traditional investments (ex: stock market), similar to how hobbyists have increasingly viewed sports cards as a hedge as well. Expect auctions to see even greater activity, leading to headlines about more record-breaking sales and the millions someone pays for an MJ rookie using Bitcoin
Sellers: Due to the above, we would expect sellers to benefit from higher sales. Auction houses are taking on the risk of cryptocurrency volatility, so sellers do not have to worry about losing value based on the crypto market. In fact, we would expect sellers to seek out platforms (the only, for now, being Goldin) that accept cryptocurrency in order to realize maximum profit on their items
Hobby Box Sellers (ex: Dave & Adam’s or your local card shop): Dollar signs should be crossing their minds right now. This seems like the logical next step of who will accept cryptocurrency as a payment method. If boxes weren’t already flying off the shelves, accepting cryptocurrency will surely help do so. Opening up wax to the crypto investor community will introduce another set of buyers to the market. Though, similar to auction houses, hobby box sellers will have to take on the risk of crypto volatility
The Traditional Hobbyist: Although the traditional hobbyist can fall under the buyer or seller category, it is important to differentiate. If I am a long-time collector who views the hobby as sacrosanct, this would frustrate me. I am simply trying to buy and sell items that are my passion, and now I need to compete with crypto investors for them? The market has evolved tremendously, and as alluded to, a Tom Brady Rookie Auto is not viewed as simply that anymore…it has now become a hedge against traditional investments. You are no longer competing with other diehard collectors of Tom Brady or with your long-time nemesis on sports forum sites. This will absolutely take some getting used to
Mint Condition’s Take: Pre-COVID pandemic, we would have guessed that cryptocurrency as a payment method for sports cards was 3-5 years away. The last year has accelerated the industry’s evolution, and we see that front and center with auction houses now accepting crypto to pay for sports cards and memorabilia. Being a collector for 10+ years who also currently works in the financial markets, I see all sides of this topic. I empathize with the traditional hobbyists who want to keep crypto investors out, and I understand the potential profit impact to auction houses by accepting crypto. For the sake of the hobby, let’s hope that we can find a balance
Card Product Releases
New Drops on March 31
Baseball: 2021 Topps Definitive Collection . Find it on Dave & Adam’s for $1,849.95. Mint Condition’s Take: Super high-end product with 6+ autos per box. I suggest sitting this one out as I don’t love the bang-for-your-buck, rather you can buy singles on eBay or join a group break
Basketball: 2020-21 Panini Prizm. Find it on Steel City for $2,289.95. Mint Condition’s Take: Another high-end product that has become the go-to for NBA rookies. Hit a LaMelo Ball refractor? Make back all of your money and then some. Much better bang-for-your-buck given how well even base rookies from this product sell for
Fractional Listings
Recent Drops
Collectable: Sandy Koufax ‘64-’65 Game-Worn Jersey. Market Cap of $426,500 (AKA at what dollar amount the card is being valued). Seller retaining 70.34% ownership. $10/share. <1% ownership left available (vs. <3% on 3/26)
Collectable: Mickey Mantle ‘56 Topps PSA NM-MT 8 x2. Market Cap of $28,500. Seller retaining 24.74% ownership. $5/share. 0% ownership left available (fully funded in <1 day)
Rally Rd.: Joe Montana ‘81 Topps Rookie PSA Gem Mint 10. Market Cap of $70,000. 38% ownership left available. $7/share
Rally Rd.: MJ ‘85 ‘Shattered Backboard’ Signed Jersey. Market Cap of $280,000. $14/share. 57% ownership left available (vs. 60% on 3/26)
Otis: Magic Johnson ‘81 Topps PSA Gem Mint 10. Market Cap of $47,400. $10/share [Otis does not share % ownership left available]
Otis: Mike Trout ‘09 Bowman Chrome Refractor Auto /500 BGS Gem Mint 9.5. Market Cap of $45,800. $10/share
Otis: Russell Wilson ‘12 National Treasures Rookie Auto /25 BGS Gem Mint 9.5. Market Cap of $58,300. $10/share
New Drops on March 31
Rally Rd.: MJ ‘87 Fleer PSA Gem Mint 10. Market Cap of $50,000. $5/share (Opens @ 12pm ET) [Photo Credit: Rally Rd.]
Collectable: Willie Mays ‘59 Topps PSA Mint 9 x2. Market Cap of $24,000. Seller retaining 21.67% ownership. $5/share (Opens @ 1pm ET)
Top Auctions
Ending Soon
Lelands Spring Auction (Ending 4/2/21 @ 11pm ET): Premier items include Tom Brady Rookie Contenders Auto BGS NM-MT+ 8.5, MJ Fleer Rookie PSA Gem Mint 10, and Mike Trout MLB Debut Game-Worn Jersey
Goldin March Premium Auction (Ending 4/3/21 - 4/6/21): Premier items include Tom Brady Rookie Contenders Auto BGS NM-MT 8, Mickey Mantle Topps Rookie PSA NM-MT 8, and Luke Doncic NT Patch Auto /10 BGS Gem Mint 9.5
Newly Listed / Coming Soon
Heritage Auctions April Showcase Auction (Listing 4/1/21): Premier items include LeBron Topps Rookie PSA Gem Mint 10, MJ Fleer Rookie BGS Mint 9, and Ken Griffey Jr. Upper Deck Rookie PSA Gem Mint 10
Around the Horn
Event Alert: At 1pm ET today, Sportico is hosting Collectible 2.0, where leading players in the sports cards and collectibles space will share their industry insight. Really looking forward to this! Mint Condition will break down any key takeaways later this week
Dapper Labs, the company that launched NBA Top Shot, has raised $305 million and is now valued at $2.6 billion. Key investors include MJ and Kevin Durant
PSA, hoping to reduce the grading backlog discussed last week, has expanded its facilities by another ~60k sq. ft. Let’s hope those throughput times start dropping…
It just became faster to sell your cards on eBay…they have introduced features to cut listing time in half. It launches this April
Thank you for reading, folks. Be sure to subscribe and share with friends and family. See you soon!