Our in-depth review compiles crucial details to help you assess whether Alt.xyz is legit, ensuring you make informed investment decisions.
What is Alt.xyz and how does it work?
Alt is a platform designed to facilitate the investment in trading cards, a niche but rapidly growing segment of alternative assets. The platform's mission revolves around unlocking the value of these alternative assets, making it easier for collectors and investors alike to manage, value, and transact their trading card collections.
At the core of Alt's offerings is the Alt Vault, a service that provides free vaulting for all graded trading cards, ensuring their security, digitization, and insurance. For ungraded (Raw) cards, the service incurs a minimal fee of $5 per card, covering the same benefits as those for graded cards, without any ongoing storage costs.
For individuals looking to leverage their collections without selling, Alt Lending offers a solution by allowing users to borrow cash against their assets. This ensures that collectors can access liquidity while retaining ownership of their valuable cards.
The platform also features the Alt Exchange, a dedicated marketplace specifically for the buying and selling of authenticated, graded cards stored within the Alt Vault. This setup ensures the authenticity of cards, streamlines transactions, and facilitates quick transfers of ownership and funds.
Additionally, Alt introduces Liquid Auctions, which are bi-weekly events showcasing some of the hobby's most sought-after trading cards. These auctions, which last for 10 days, are accessible to anyone with an Alt account, offering both buyers and sellers a transparent and efficient platform for transactions.
Lastly, Alt's Portfolio Management tool enables users to upload and track their trading card collections over time. Utilizing Alt Value, which is calculated through a blend of systematic market knowledge and comprehensive data analysis, users can monitor the market value of their assets, backed by some of the industry's most detailed transaction data.
In essence, Alt positions itself as a data-driven platform for trading card enthusiasts and investors, offering a suite of tools and services designed to enhance the value, security, and liquidity of trading card investments.
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How risky is Alt.xyz?
4/5
— High RiskInvesting in trading cards through Alt, like all investment platforms, carries inherent risks that potential investors should consider.
1. Market Risk: The value of trading cards can fluctuate widely based on market demand, rarity, condition, and trends within the collecting community. While some cards may appreciate in value, others may not perform as expected, leading to potential losses.
2. Liquidity Risk: Despite Alt's efforts to increase liquidity through its exchange and auction systems, trading cards remain a relatively niche investment. High-value or less popular cards may take longer to sell or may not achieve expected prices, affecting liquidity.
3. Authentication and Grading Uncertainty: While Alt requires cards to be graded by reputable agencies (PSA, BGS, or SGC) and offers authentication for cards sold on its exchange, discrepancies in grading standards or errors in authentication can impact a card's value and an investor's trust in the process.
4. Regulatory Risk: As a platform dealing with alternative investments, Alt operates within a complex regulatory environment. Changes in laws or regulations affecting alternative assets, financial transactions, or digital marketplaces could impact Alt's operations and, by extension, its users.
5. Operational Risk: This includes risks related to the security and functionality of Alt's platform. Cybersecurity threats, technical glitches, or operational failures could disrupt trading, affect the valuation of assets, or lead to loss of assets.
6. Insurance and Vaulting: While Alt provides insurance and vaulting services for stored cards, there are always risks associated with the physical storage and insurance coverage of tangible assets. These could include limitations on insurance coverage or potential damage to stored items.
Potential investors should carefully consider these risks and conduct due diligence before engaging with the platform. Diversification within one's investment portfolio and thorough research into individual assets can help mitigate some of these risks.
How liquid is Alt.xyz?
2/5
— Moderate LiquidityAlt provides its users with several features to enhance the liquidity of trading cards, a traditionally illiquid asset class. The platform's liquidity is primarily facilitated through services like the Alt Exchange and Alt Liquid Auctions.
The Alt Exchange allows users to buy and sell authenticated, graded trading cards that are stored within the Alt Vault. This setup not only ensures the authenticity and quality of the cards but also enables quick transfers of ownership and funds. By requiring cards to be graded and vaulted, Alt significantly reduces the time and friction usually associated with peer-to-peer transactions of physical assets, thereby increasing liquidity.
Alt Liquid Auctions further contribute to the platform's liquidity by offering bi-weekly auctions of highly sought-after trading cards. These auctions provide a regular, structured opportunity for buyers and sellers to engage in transactions, adding a layer of predictability and consistency to the market. This bi-weekly event ensures there's always a dynamic flow of assets and opportunities for liquidity.
Moreover, the ability to borrow against the value of the cards through Alt Lending allows users to access cash without needing to sell, offering a form of liquidity that doesn't require parting with assets.
Together, these features create a more liquid market for trading cards on Alt, making it easier for investors to enter and exit positions compared to traditional methods of trading card transactions.
How volatile is Alt.xyz?
3/5
— Moderate VolatilityThe assets traded on Alt, primarily consisting of trading cards, exhibit a level of volatility inherent to collectible and alternative asset markets. This volatility is influenced by several factors, including changes in consumer interest, market demand, the rarity and condition of specific cards, and broader economic conditions.
For instance, a sudden surge in popularity of a sports figure or character can lead to a rapid increase in the value of related trading cards, while a decline in interest or negative news can cause values to drop just as quickly.
Additionally, the market for trading cards is relatively niche, with a limited pool of buyers and sellers compared to traditional financial markets, which can result in more significant price swings based on transaction activity.
Investors on Alt should be prepared for the possibility of rapid changes in the value of their assets, reflecting the dynamic and sometimes unpredictable nature of the trading card market.
What is the average rate of return for Alt.xyz?
N/P
— Not Predictable ReturnThe returns an investor can expect from trading cards on Alt vary widely and depend on several factors, including the rarity, condition, and demand for specific cards. Trading cards are alternative investments, and like art, vintage cars, or rare collectibles, their value can fluctuate significantly over time. Some cards, especially those that are rare, in mint condition, or associated with iconic athletes or characters, have the potential to appreciate substantially. However, market trends, shifts in popularity, and changes in the broader economic landscape can also lead to periods of depreciation.
Investors should approach trading card investments with a long-term perspective, recognizing that significant returns may take time to materialize and are not guaranteed. It's also crucial for investors to conduct thorough research and possibly diversify their holdings within this asset class to mitigate risk. While stories of trading cards selling for millions may capture the imagination, they represent the exception rather than the rule. As with any investment, potential returns on Alt come with a degree of risk and uncertainty, and outcomes can vary widely based on market dynamics and individual asset characteristics.
What is the minimum investment amount for Alt.xyz?
$2
Bids on the platform can start from as little as $2, allowing a wide range of investors and collectors, regardless of their budget, to participate in the trading card market.
This low entry point democratizes access to trading card investments, making it feasible for enthusiasts and investors alike to engage with the market, whether they are looking to start small or diversify their portfolio with alternative assets.
What is the investment time horizon for Alt.xyz?
5+ years
The time horizon for investing in trading cards on Alt should generally be considered long-term. Due to the volatile and speculative nature of alternative assets like trading cards, significant appreciation in value may take years to materialize. The market for these collectibles is influenced by trends, popularity of specific athletes or characters, and rarity, among other factors, which can shift over time.
Investors looking to maximize returns would do well to approach trading card investments with patience, understanding that while rapid gains are possible, they are the exception rather than the rule. A long-term investment horizon allows for riding out market fluctuations and capitalizing on the gradual increase in the value of rare or highly sought-after cards. This strategy aligns with the broader approach to alternative investments, where time can often enhance the potential for significant returns.
Who can invest in Alt.xyz?
International
To invest with Alt, individuals must meet certain eligibility criteria, primarily aimed at ensuring compliance with legal requirements for financial transactions and identity verification.
These prerequisites include:
1. Age Requirement: Investors must be at least 18 years old to participate in transactions on the platform.
2. Address Verification: A current address must be provided for verification purposes.
3. Identification: Investors need to supply a Social Security number for those in the U.S. For both U.S. and international users, a valid government-issued photo ID is required.
Alt supports international investors by accepting payments from 76 additional countries, making the platform accessible to a global audience.
Is Alt.xyz regulated or audited?
Not Regulated
Alt operates within the regulatory framework applicable to financial technology platforms and alternative investment marketplaces. In compliance with legal requirements, Alt mandates identity verification for all its users to prevent fraud and ensure the integrity of transactions on its platform. This process includes providing a valid government-issued photo ID and, for U.S. residents, a Social Security number.
While specific details on audits are not provided, platforms like Alt typically undergo regular audits and assessments to ensure compliance with financial regulations, cybersecurity standards, and operational best practices. These audits are crucial for maintaining user trust, securing sensitive information, and ensuring the platform's overall reliability and legality. Regular audits also help in identifying and mitigating risks, ensuring that Alt remains in compliance with the evolving landscape of financial regulations.
Is Alt.xyz insured?
Yes
Alt provides insurance coverage for trading cards stored within its vaulting service, ensuring an added layer of security for investors' assets. This insurance is designed to protect against risks such as theft, damage, and loss while the cards are under Alt's custody.
The provision of insurance is a critical feature, considering the high value and irreplaceable nature of many trading cards. By including insurance as part of the vaulting service, Alt aims to give investors peace of mind, knowing that their valuable assets are protected.
Does Alt.xyz distribute payouts?
No Recurring Payouts
Investing in trading cards through Alt does not provide dividends in the traditional sense that investors might expect from stocks or other dividend-yielding financial instruments.
Trading cards are alternative assets, much like art or collectibles, whose value derives from their rarity, condition, demand, and cultural significance rather than generating regular income or dividends.
The primary financial benefit comes from potential appreciation in the asset's value over time, which can be realized upon sale. Investors in trading cards should focus on capital gains as their main return mechanism, rather than expecting periodic income distributions.
How do I get my money back from Alt.xyz?
An investor can get their money back from investments in trading cards on Alt primarily through the sale of their assets on the platform.
The process involves several steps:
1. Listing for Sale: Investors can list their trading cards for sale on the Alt Exchange or through Alt Liquid Auctions. For a card to be listed on the Exchange, it must be graded by an approved agency and stored in the Alt Vault, ensuring its authenticity and condition.
2. Transaction: When a buyer is found, the sale is processed through the platform. The secure storage and digitization of cards in the Alt Vault facilitate a quick transfer of ownership and funds.
3. Receiving Funds: After the sale is completed, the proceeds are credited to the seller's account on Alt. The investor can then withdraw their funds, typically via bank transfer or other available withdrawal methods specified by the platform.
It's important for investors to consider market conditions and the liquidity of their assets when planning to sell. While Alt provides tools and services to facilitate sales and enhance liquidity, the timeframe for selling a card and the price it fetches can vary based on demand, rarity, and overall market trends.
What are the annual fees for Alt.xyz?
Alt's fee structure is designed to accommodate various stages of the trading card investment process, notably in vaulting services and sales transactions.
Vaulting Services:
- For trading cards that are graded by companies supported by Alt, vaulting services are provided free of charge. This includes digitization, storage, and insurance of the cards.
- For cards graded by unsupported companies and ungraded (Raw) cards, a fee of $5 per card is charged for vaulting services.
Sales Transactions. The fees for selling trading cards on Alt's Fixed Price marketplace, including counteroffers and cards listed on eBay, vary based on the final sale price of the card, as follows:
- For selling prices between $0 and $7,499, a selling fee of 10% of the final sale price is applied.
- For selling prices between $7,500 and $9,999, the selling fee is reduced to 8%.
- For selling prices of $10,000 and above, the selling fee further decreases to 5%.
How do I handle my investments in Alt.xyz?
On Alt, investors have the capability to actively manage their trading card assets through a variety of tools and features designed to enhance the ownership and investment experience.
Key aspects of asset management available on the platform include:
1. Portfolio Management: Investors can upload their entire trading card collection into their Alt portfolio. This allows for centralized tracking of individual assets and overall collection value over time.
2. Alt Value Tracking: Using Alt's proprietary valuation tool, investors can monitor the market value of their cards. Alt Value is calculated through a combination of data analysis and market knowledge, providing investors with insights into how their assets are performing in the current market.
3. Vaulting Services: By utilizing Alt's vaulting service, investors can ensure the physical safety and condition of their cards. Vaulted cards are also digitized, allowing for easy viewing and management online. This service includes insurance, adding an extra layer of protection for the assets.
4. Buying and Selling on Alt Exchange: The platform’s marketplace enables investors to liquidate parts of their collection or acquire new assets. Transactions are streamlined as cards must be graded and stored in the Alt Vault, ensuring authenticity and quick transfer of ownership.
5. Lending Options: Alt Lending allows investors to borrow against the value of their assets, providing liquidity without the need to sell. This can be a strategic tool for managing cash flow while retaining ownership of valuable cards.
Through these features, Alt empowers investors to actively manage their trading card assets, from tracking and valuation to protection and liquidity options.
How does Alt.xyz get taxed?
Alt provides tax reporting support to its investors by issuing 1099-K tax forms to certain account holders who meet specific criteria for a tax year. This support is aimed at facilitating investors' compliance with their tax obligations.
To qualify for receiving a 1099-K form from Alt or Alt's payment partner, an investor must:
1. Be a verified Alt customer.
2. File taxes in the United States.
3. Have received an aggregate amount of payments exceeding $600 during the calendar year.
The issuance of the 1099-K form is part of Alt's commitment to ensuring that investors meet their tax obligations by reporting the necessary information to the IRS and the appropriate state tax authority, based on the reporting thresholds met by the investor.
How many investors are on Alt.xyz?
The website received an average of 132,000 visits in the last 3 months.
With over 23,000 cards directly listed on Alt, the platform offers a wide array of investment opportunities ranging from common collectibles to rare and highly sought-after pieces. Additionally, the integration and tracking of over 3 million more cards from external sources like eBay, PWCC, Goldin, and Lelands further underscore Alt's comprehensive coverage of the trading card market.
A notable highlight that speaks to the caliber of assets within Alt's ecosystem is the listing of a trading card valued at $11 million.
This vast collection of cards, combined with the high-profile listings, indicates that Alt serves a diverse user base, from casual collectors to serious investors looking to engage with alternative assets.
Who is the CEO of Alt.xyz?
Leore Avidar is the founder and CEO at Alt.
His experience prior to founding Alt includes a position at Amazon Web Services, where he was involved in Technical Business Development with a focus on Startups and Venture Capital.
Beyond his role at Alt, Avidar has a broad engagement with the startup ecosystem as an angel investor in 22 startups and a limited partnerin 8 funds.
