Sports Card DAO

[x2drich2000]

Per the OP the group would be to have group of cards, so essentially you would need to join the group, commit to financing before evening knowing exactly what the group would be elect to purchase. Imagine joining expecting to purchase a high grade Ruths/Cobbs and getting stuck with some modern basketball patch cards instead.

[maniac_73]

Hey Everybody, loving this conversation and questions (both positive and negative lol). Just as an update, the DAO has been created as a closed DAO with some really great members. I wont say who they are but if they want to disclose then that is their choice. Let's keep this convo going though as its a really interesting topic and one that will continue to evolve as this space evolves.

[Lorewalker]

Originally Posted by maniac_73

Hey Everybody, loving this conversation and questions (both positive and negative lol). Just as an update, the DAO has been created as a closed DAO with some really great members. I wont say who they are but if they want to disclose then that is their choice. Let's keep this convo going though as its a really interesting topic and one that will continue to evolve as this space evolves.

And here they have been telling me that Rome was not built in a day! Proof now that it could have been!

[Peter_Spaeth]

Originally Posted by Lorewalker

And here they have been telling me that Rome was not built in a day! Proof now that it could have been!

Fire, aim, ready.

[carlsonjok]

Originally Posted by maniac_73

Hey Everybody, loving this conversation and questions (both positive and negative lol). Just as an update, the DAO has been created as a closed DAO with some really great members.

For someone starting a conversation and still doing your research, you seem to have a lot of insider information.

I wont say who they are but if they want to disclose then that is their choice.

I guess we can assume Gary Vee isn't one, since we know that guy can't keep his cakehole shut.

Let's keep this convo going though as its a really interesting topic and one that will continue to evolve as this space evolves.

I have to say that I am bit shocked that us curmudgeons are commenting more than the swells over at Blowout.

[swarmee]

Originally Posted by carlsonjok

I have to say that I am bit shocked that us curmudgeons are commenting more than the swells over at Blowout.

I wonder how the Blowout unopened case mutual fund is doing. I thought that signaled the top of the market, but it still ran for a year after that.

https://www.blowoutforums.com/showthread.php?t=1351664

Modern Wax Fund
In February 2020, Attic Investments, in partnership with Blowout Cards, launched the $3.15M Modern Wax Fund, believed to be the first private equity fund in trading cards. This fund followed the structure of a Special Purpose Vehicle with the assets to be acquired already identified and under contract to be closed on by the Fund. The asset acquisition represented 9,202 of individual boxes/sets and was for just over $3M. The most recent quarterly valuation from June 30, 2021 put the value of the underlying assets at $11.67M or an increase of 288.3%. The June 30, 2021 quarter did represent the first negative quarter for the underlying fund assets at -7.6%. The fund will strategically liquidate the assets in years 4-7, with approximately 25% of the assets liquidated each of those years.

[Lorewalker]

Originally Posted by carlsonjok

For someone starting a conversation and still doing your research, you seem to have a lot of insider information.

At 1PM yesterday he is still researching and 24 hours later he has not only formed it but recruited significant members. Very impressive 24 hour period, don't ya think?

At the very least it feels like he has not been 100% upfront. Maybe his opening post should have stated that he was about to form this and had significant interest. As an investor I like full disclosure but maybe that is a silly concept these days.

This is not for me for other reasons but it is absolutely not for me for the way it was presented.

[BobC]

Was just reading a story online how another group is supposedly trying to create a Blockbuster DAO now, and how if they are successful, some feel they will be able to eventually take out Netfix.

This DAO concept sounds like something the government will eventually come back at. Forming any group for investing like this should require some form of legal entity election (partnership, LLC, corporation) it seems, and these "tokens" sound like a type of substitute for, but similar to, owning shares of stock or partnership units in the formal, traditional entries. And in the case of a DAO formed to invest in cards, along with questions that have already been asked about who will make actual buy/sell decisions, or physically hold the cards, what about what the tax treatment is and how it is handled and reported by the DAO and the "token" owners if a card bought by the DAO is subsequently sold. Or what is the tax treatment and how is it handled and reported if a "token" owner decides they want out of the DAO and decides to sell their "tokens" to someone else, or will they even be allowed to do that?

I would most definitely want to completely review and read through every page of all documents related to the formation and all ongoing operational aspects of any DAO I was even thinking about getting into. I also wonder if there couldn't be a lot of additional, ongoing costs and fees such an investing vehicle will create for the owners. And another curious question(s) I'd have is if everyone truly has an equal say on things based on what they paid in to the DAO, or do maybe some who formed and set up the DAO get extra "tokens" for their efforts in setting things up, or get to buy "tokens" at a reduced cost for those efforts and service and/or receive more "tokens" or discounts in acquiring them going forward for providing managing type services to the DAO, on an ongoing basis, and so on. I have always been a little suspicious by nature, and can't help but think that some parties doing these DAOs are profiting from them in some manner at everyone else's expense.

[Fred]

How does a group IPO a DAO?

A few posts back there was mention of a "fund" that originated at $3.1M and is now worth over $11M. The assumption is that if there were 3.1 million "shares" at the beginning, then each share would now be worth $11. What happens if I decide I want out NOW, rather than later? Are there people in line waiting to pay $11 a share for that "fund"? Who handles the transaction and logs it and how long would it take to get the funds from selling the shares?

[swarmee]

Originally Posted by Fred

How does a group IPO a DAO?

A few posts back there was mention of a "fund" that originated at $3.1M and is now worth over $11M. The assumption is that if there were 3.1 million "shares" at the beginning, then each share would now be worth $11. What happens if I decide I want out NOW, rather than later? Are there people in line waiting to pay $11 a share for that "fund"? Who handles the transaction and logs it and how long would it take to get the funds from selling the shares?

Well, each share in your example would be worth $11/3.1 = $3.70 each. In case you wanted to sell, you would line up a buyer to purchase your shares, similar to the Collectible and RallyRd transaction marketplace. In Blowout's unopened, you may have to indicate willingness to sell to the oversight company who then offers it to the next person on the waiting list willing to buy in at your sale price.

I think the DAO idea is terrible, even worse than storing stuff in the PWCC vault. And you know how much I abhor PWCC. What if 50% of the cards bought by the DAO are later found to be trimmed in BGS and SGC holders, with no grade guarantee in force at either company? I'm sure the DAO token owners will all make the right call at that point in time. Or if the bank vault the cards are stored in is flooded. How does insurance pay out? If you're really going to be a part of this, read every document and ask every question before you throw cash in the hole.

[D. Bergin]

I love how the word “democracy” is thrown around in this scheme. It’s a “democracy”, As in: Whomever has the most money (ie. stock/tokens/etc) has the democratic right to be the dictator of this fund. Most likely the originator of the fund.

Split those tokens baby…..then split ‘em again and sell ‘em again.

I also love how the words “transparent”, and “undisclosed” were rather un-ironically used within the same context.

Hope the undisclosed majority partners don’t vote to liquidate the fund and relocate to Costa Rica

[skelly423]

I didn’t see any firm yeses on this thread. I’m curious if anyone other than the OP will put their hand up and say they’re putting their money into this arrangement. I’m skeptical that any board members actually joined in the day since this thread was posted.

For those of a certain vintage, I’m thinking the monorail salesman just came to Springfield….

[drcy]

Originally Posted by x2drich2000

Per the OP the group would be to have group of cards, so essentially you would need to join the group, commit to financing before evening knowing exactly what the group would be elect to purchase. Imagine joining expecting to purchase a high grade Ruths/Cobbs and getting stuck with some modern basketball patch cards instead.

Pokeman, Lady Gaga concert-used swatch card