Amazon enters the fractional sports trading card industry with Dibbs
With more and more prominent names entering NFTs, Amazon has now joined the queue to enter the sports collectibles industry by investing in fractional marketplace Dibbs. This comes at an ideal time because Dibbs has just released an intriguing new feature that allows users to sell stakes in their things directly to one another.
A new step up
This is certainly fascinating, as collectibles have not previously piqued Amazon’s interest, but that doesn’t stop them. This household name is ready for this move since it has a track record of making strategic investments and acquisitions to retain its dominance, including Audible, Deliveroo, LoveFilm, and Twitch.
The demand for alternatives to traditional financial assets such as stocks and shares is driving the expansion in sports memorabilia. Surprisingly, sports cards are now fetching millions of dollars at auction, while NFTs are also catching speculators’ attention.
The terms of Amazon’s investment have yet to be open to the public. However, Dibbs did raise US$16 million in Series A funding in July of this year. Foundry Group and Tusk Venture Partners are among their current investors. Of course, this is not all as there are more partners with athletes Chris Paul, Channing Frye, DeAndre Hopkins, Kevin Love, Kris Bryant, and Skylar Diggins-Smith.
Dibbs was formed in 2020 to address ownership issues by giving fractional shares of cards and NFTs. They are offering a more inexpensive path to involvement and allowing collectors to unlock value without giving up absolute ownership.
The most recent extension of this idea is ‘Sell with Dibbs,’ a marketplace where owners can sell directly to other users while maintaining control over the process. This includes the price as well as the number of fractions for sale.
Fractions are specified in smart contracts, which are validated by blockchain technology, and Dibbs keeps and insures any card listed on the site, charging a 2.9% commission on any transaction. If someone buys 100% ownership in an asset, they can take control and have it shipped to them.