Trades and Trends by Altan Insights: June 5, 2021

Join Altan Insights as we highlight trading activity across the various alternative marketplaces with a combination of charts and penned analysis to help investors track trends and price movements that impact their portfolio.

Collectable

Note: Only assets that traded for the entire month of May are included in data calculations and graphs.‍

After returning a positive April in which the average return was 1.65%, performance on Collectable slumped slightly, dropping -3.33%. Thirty assets were traded throughout the entire month and over a dozen new assets were added as Collectable ended May with 53 different offerings trading. 

The 1996 Tiger Woods SI for Kids card was the top-performing asset on the platform, gaining 85.5%. The card IPO’d in February and Collectable presented investors with a buyout offer for $34,400 on April 7th. The response from investors was a resounding ‘no’ as 91% voted to reject the offer. The famously perforated card closed May with a $43,592.50 market cap, nearly 10K more than the buyout amount. The second-best performing asset during the month was a game-worn and signed Michael Jordan rookie jersey. The road jersey, which was worn by Jordan during the 1984-85 season, ended April at a low point of $7.40 per share but recovered and closed May trading at $9.00 per share. Two other jerseys showed strong performances in May as the 1956 Johnny Unitas and 1954 Wilt Chamberlain jerseys returned 13.33% and 11.11% respectively. 

The worst-performing asset was the Emmitt Smith Trophies which fell -26.67% during the month. The MVP trophies are now down -45% overall since opening for trading on April 19th. The asset suffering the second biggest loss was the 1952 Bowman Mickey Mantle card which dipped -25.18%. The Bowman Mantle is still trading 20% higher than its IPO valuation but has pulled back to a $35,000 market cap after reaching $55,000 earlier this year. 

One actively trading asset was sold on May 30th after investors accepted a buyout offer. The 1985 Michael Jordan Nike Promo Basket was sold for $203,000 after 56% of investors (share weighted) voted to approve the sale. The sale represented an ROI of 43% after the card had actually traded back to its IPO price of $139,000. 

Sports cards fell -4.09% on average while sports memorabilia dropped -1.8%. This is a flip from last month when sports cards led after gaining 3.14% and sports memorabilia decreased -2.52%.

Rally

During a month highlighted by a new trading schedule, assets trading on Rally continued to struggle overall. The average return throughout May was -10.03%, similar to the average during April, -9.98%. 

The 1985 NES Super Mario Bros. received a $484,505 net buyout offer which was rejected by 72% of investors (share weighted) on May 4th. The video game traded on May 11th and jumped 130%, the best performance of any fractional asset during the month. The game eclipsed the buyout amount and now has a $690,000 market cap. Three sports cards comprised the next best-performing assets as the 1956 Roberto Clemente card gained 25.64%, Kareem’s 1969 Topps card added 24.61%, and the 1958 Pelé card increased its market cap by 13.5%. 

The worst performing asset in May was Jack Kerouac’s: On the Road. The 1st edition copy fell -64.75% and was followed closely by two Michael Jordan offerings. MJ’s 1988 sneakers dropped -51.29% and his 1984 Signing Day Jersey had its market cap cut by -46%. Video games returned 15.79% on average, carried by the ‘85 Super Mario performance. For the second straight month, sports cards returned a positive month. In April, cards increased by an average of 2.5% and in May, performance remained relatively flat with a gain of 1.68%. Cars were the most frequent visitor to the Rally secondary market as sixteen different offerings traded during May. 

Otis

Note: Only assets that traded for the entire month of May are included in data calculations and graphs.

Otis has the best average return of the three major platforms as their assets dropped -3.06% overall. Otis traded a total of 76 different assets across seven different asset classes during the month of May with five additional offerings added intra-month. 

The comic book ‘Tomb of Dracula’ gained 91.67% during May and is now up 120% since its IPO. Otis also has a copy of the 1985 NES Super Mario Bros. which increased 33.24%. Three different sneakers were amongst the top ten returning assets in May as the Air Jordan Kobe ⅜ PE Pack jumped 57.20%, followed by the ‘Nike X Travis Scott Collab’ and ‘Yeezy Collection I’ which gained 26.14% and 17.5% respectively. 

Felipe Pantone’s ‘CHROMADYNAMICA MSS’ was the worst performing asset in May, falling -44.45%. Sports cards comprised the next four assets led by two 2004 Panini soccer cards featuring Lionel Messi and Christiano Ronaldo which dropped -43.71% and -36.68%. It seems as though investors in May might have anticipated an early playoff exit for the Lakers. LeBron James cards were the third worst performing asset during May on both Collectable and Otis, as the Otis card slumped -38.18%.

Card games were the best-performing asset class overall led by a 29.49% monthly return for the 1st Edition Venusaur card. Comic books followed with a 4.72% gain and sneakers were the other asset class to return a positive month, increasing by 3.03% on average. For reference, card games were the worst-returning asset on Otis in April when the space dropped -17.39%. Comic books were the best performing asset class in April, returning 10.22%. Sports cards fell mightily on Otis during May, propelled by the Soccer/LeBron sell-off. The sector tumbled -16.07% while sports memorabilia slipped -2.85%.

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Disclaimer: You understand that by reading Altan Insights, you are not receiving financial advice. No content published here constitutes a recommendation that any particular security, transaction, or investment strategy is suitable for any specific person. You further understand that the author(s) are not advising you personally concerning the nature, potential, value or suitability of any particular security, transaction, or investment strategy. You alone are solely responsible for determining whether an investment, security or strategy, or any other product or service, is appropriate or suitable for you based on your investment objectives and personal financial situation. Please speak with a financial advisor to understand if the risks inherent in trading are appropriate for you. Trade at your own risk. 

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