Tom Brady Collectibles Tank 📉 & Meebits Insider Trading 👀
Brady's un-retirement sinks value of final game football, and claims that insiders benefitted from Meebits sale
Cultured is a newsletter that gets readers up to speed on the most interesting things going on at the intersection of finance, art, collectibles, NFTs, and more. Cultured is produced by Otis, an alternative investment platform that was recently acquired by Public.com.
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🗞 STORIES OF THE DAY
Tom Brady’s return from retirement tanks the value of “last game” collectibles
Just hours after a bidder paid more than $500,000 for a football used by Tom Brady in his retirement game, the football player announced he’d be returning to the field. For the unlucky collector, it means their prized football is now just another game item.
Some experts estimate the value of the football dropped by 96% to just $20,000 following the announcement. Still, the bidder will be on the hook for the full amount because the listing was accurate at the time of sale.
There are three ways this can play out: the buyer could pay the full amount and take the loss, the auction house could negotiate some kind of deal with buyer and seller, or Brady himself could step in to offer some kind of settlement.
Our Take: This auction could have wide-ranging effects on the price of Brady memorabilia next time he retires.
This is a nightmare situation for any collector, and it’s pretty clear the auction house isn’t happy either. Hopefully whatever resolution the parties work out will be straightforward and free of legal drama. However, next time Brady retires, collectors will probably think twice before putting down huge sums on items from the game.
Irregular trading patterns cloud Yuga Labs’s acquisition of Meebits
In the days before Yuga Labs acquired Meebits from Larva Labs, a handful of accounts bought up the tokens at significantly inflated values. In some cases, the price floor was upwards of 6 ETH — more than double the price two days earlier.
This has led some NFT enthusiasts to lob accusations of insider trading. One account pointed to purchases by execs at TikTok and Twitter, suggesting they knew about the deal before it closed.
The anonymous nature of the blockchain means we’ll probably never know if this was indeed insider trading. Even if it was, it’s still unclear whether that would be illegal. The market is currently unregulated, meaning that insider trading isn’t necessarily a crime.
Our Take: The drama around Meebits has shaken confidence in the collection, which could have broader repercussions across the NFT market.
If these revelations end up being true, it could rattle collectors’ confidence in the value of the Meebits collection. Given how big the collection is, any damage to Meebits’s value would likely be felt in the rest of the market as well. In addition to eroding investors’ confidence, the implication of insider trading on such a big deal could also result in a greater push for regulation.
✨ AROUND THE INTERNET
Who’s doing NFTs now? DC Comics, Gucci (again), and Ukraine (yes, the country). Check out the full list of NFTs by celebs and big brands on Otis Mag.
A mysterious Pokémon card has reappeared on YouTube after a collector bought the card for $130,000 earlier this year. Before the sale, the card had been hidden for two decades.
Bored Ape Yacht Club has released its own token called ApeCoin. Proceeds from the sale will help fund a DAO and play-to-earn game.
A rare Picasso sculpture deaccessioned from the Met’s collection is going up for auction at Christie’s. It’s expected to fetch $30 million.
Weekend watch: The future of NFTs could be in play-to-earn games. It could be a new frontier for the metaverse and represent a path forward for the technology.
The future is now and it’s a weird snail/bird/cat hybrid that gives you free crypto.
