Our in-depth review compiles crucial details to help you assess whether Rally is legit, ensuring you make informed investment decisions.
What is Rally and how does it work?
Rally presents an approach for individuals interested in investing in collectible assets. It operates on a platform that allows investors to buy and sell equity shares in items that possess unique value due to their rarity, historical significance, or cultural importance.
The process involves sourcing, verifying, and acquiring noteworthy collectibles from around the globe. Each selected item is then transformed into a securitized company through regulatory qualification, effectively splitting the asset into equity shares. These shares are made available to the public via an Initial Offering on the Rally platform, enabling investors of all sizes to participate and build a diversified portfolio of collectible assets.
Once an asset is listed on Rally, investors have the opportunity to delve into comprehensive details about it, including its provenance, ownership history, visual documentation, and comparative past sales data. This transparency allows investors to make informed decisions based on the asset's potential for appreciation over time. Approximately 90 days following the Initial Offering, the platform offers a trading period where investors can either sell their shares through the app or choose to increase their stake, facilitated by registered broker-dealers.
Rally prioritizes the trust and safety of its investors by partnering with FINRA registered broker-dealers. These partners are tasked with confirming the identities of investors, issuing shares, and overseeing the transaction process to ensure compliance and security. Furthermore, Rally invests alongside its users in every offering, aligning its interests with those of its investors and underscoring its commitment to selecting and managing assets that are anticipated to yield long-term returns.
Receive new reviews from Fintorial
How risky is Rally?
3/5
— Moderate RiskInvesting through Rally, like any investment platform, involves certain risks that potential investors need to be aware of before committing their funds. The value of investments on Rally can fluctuate, meaning that the price of shares in collectible assets can increase or decrease over time. Consequently, there is no guarantee that an investor will be able to sell their shares at their desired price when they choose to liquidate their investment. This market risk is inherent in the nature of investing, particularly in assets whose value is subject to market perceptions, trends, and demand.
Collectible assets, such as collector cars and other unique items offered on Rally, are considered real assets, which contributes to their appeal for many investors. However, this characteristic also introduces specific risks related to the physical condition, authenticity, and provenance of such items, as well as broader market risks that can affect their value.
Rally provides detailed information about the risks associated with each investment through Offering Circulars (OC) or Private Placement Memorandums (PPM). These documents are readily accessible in the "Legal" section of each asset's page on the Rally platform. Potential investors are encouraged to thoroughly review these documents to fully understand the risk factors before investing in any offering on Rally.
How liquid is Rally?
1/5
— Minimum LiquidityRally offers liquidity for investments through its Live Trading feature. It allows investors to place bid and ask orders, which are then routed to Dalmore Group, LLC, a broker-dealer, for matching on the Public Private Execution Network Alternative Trading System (PPEX ATS). The PPEX ATS, operated by North Capital Private Securities Corporation, enables these orders to be matched and executed in real-time during market hours, which run from Monday to Friday (excluding standard stock market holidays) between 10:30AM and 4:30PM Eastern Time.
After purchasing shares in an asset's Initial Offering, there is a 90-day lock-up period during which shares cannot be traded. Following this period, investors can sell their shares through the Rally App, which acts as the interface for placing bids and asks that are routed to the PPEX ATS for execution. Shares are not listed on public stock exchanges like NASDAQ or NYSE, but the trading process on the PPEX ATS is designed to be familiar to those experienced with traditional stock markets.
Not all assets may be available for secondary trading on the PPEX ATS, and Rally will indicate within the app which assets are not open for trading. For assets that are eligible, investors must hold their purchased shares for at least 5 business days before they can be resold.
How volatile is Rally?
3/5
— Moderate VolatilityThe assets offered on Rally, primarily consisting of collector cars and other collectibles, inherently exhibit a degree of volatility in their market values. This volatility is influenced by several factors specific to the collectibles market, including changes in consumer preferences, market demand, the rarity and condition of the asset, and broader economic conditions. Unlike traditional financial assets whose value might be more directly tied to financial performance indicators or market indices, the value of collectible assets can be more subjective and can fluctuate based on trends within the collectors' community and the historical significance of the items.
Given their unique nature, these assets may see periods of significant appreciation in value, but they can also experience downturns, where their market value may decrease. This volatility is a critical consideration for investors on the Rally platform, as it can impact the timing and profitability of their investment decisions. Investors should be prepared for the possibility that the value of their shares in these collectible assets could change rapidly and unpredictably over time, reflecting the dynamic and sometimes speculative nature of the collectibles market.
What is the average rate of return for Rally?
N/P
— Not Predictable ReturnRally's platform has showcased a range of returns on investments in collectible assets, with historical data indicating returns from as low as 1.35% to as high as 84%. These returns are based on assets that have been held for a period ranging from 2 to 6 years.
It's important for potential investors to understand that these figures represent all-time returns, reflecting the performance of various assets over different holding periods within the specified range.
What is the minimum investment amount for Rally?
$2
Investors can begin their journey in the collectible asset market with as little as $2 per share.
What is the investment time horizon for Rally?
2-6 years
The time horizon for investments on Rally varies, typically extending from 2 to 6 years based on historical data. This timeframe allows for the appreciation of collectible assets, which can be influenced by market demand, rarity, and other factors unique to each item. Investors should consider this medium to long-term horizon when allocating funds to collectible assets, as these are not typically suited for short-term speculation.
Additionally, Rally implements a 90-day lock-up period for each asset following its Initial Offering. During this lock-up period, shares cannot be bought or sold, allowing for market stabilization and ensuring that investments are made with a longer-term perspective in mind. After this period, shares become tradable during specific market hours, providing liquidity within the constraints of the platform's trading system.
This approach underscores the importance of patience and a strategic view when investing in collectibles, acknowledging the time needed for these assets to potentially increase in value.
Who can invest in Rally?
United States
To invest with Rally, individuals must be over the age of 18 and possess a U.S. Social Security Number. Additionally, they must pass standard Know-Your-Customer (KYC) and Anti-Money Laundering (AML) checks.
Prospective investors are also required to have a bank account, a form of identification, and an address within the contiguous United States. While the Rally app itself is free and open for anyone to explore, the ability to invest is currently restricted to those who meet these criteria.
Is Rally regulated or audited?
SEC Regulated
The platform exclusively offers securities that are regulated by the U.S. Securities & Exchange Commission (SEC), providing an added layer of protection for investors. Rally's activities are overseen by regulatory bodies, and it partners with registered broker-dealers who are members of the Financial Industry Regulatory Authority (FINRA) and covered by the Securities Investor Protection Corporation (SIPC). These partnerships ensure that Rally adheres to strict financial and ethical standards, including investor identity verification and transaction oversight.
In addition to regulatory oversight, Rally's financial operations and asset acquisitions undergo regular audits. These audits are conducted by independent third parties to verify the accuracy of financial statements, compliance with regulatory standards, and the authenticity and valuation of the collectible assets. This rigorous audit process is part of Rally's commitment to maintaining a transparent and trustworthy platform for investors to engage in the purchase and sale of shares in collectible assets.
The securities offered through Rally are available for sale through a registered broker-dealer licensed in all 50 U.S. states, aligning with the platform's dedication to regulatory compliance and investor protection.
Is Rally insured?
Yes
Rally ensures that all collectible assets listed on their platform are protected by comprehensive insurance policies. These policies are designed to cover potential damages or losses to the physical assets, safeguarding the investments made by shareholders.
While specific details of the coverage can vary depending on the asset in question, generally, the insurance is in place to provide a level of security against unforeseen circumstances that could adversely affect the value of the collectibles.
Does Rally distribute payouts?
No Recurring Payouts
Rally does not traditionally offer dividends in the way that stock investments in corporations do. Instead, the primary financial return for investors on Rally comes from the potential appreciation of the collectible assets over time. Investors can realize gains by selling their shares at a higher price than the purchase price, especially if the asset's value increases due to factors like rarity, demand, and historical significance.
The focus on Rally is more on capital gains from the resale of shares in collectible assets rather than periodic income through dividends. This model aligns with the nature of investing in physical collectibles, which typically do not generate regular income but can appreciate in value over time, offering potential profits to investors upon exit.
How do I get my money back from Rally?
An investor can potentially get their money back on Rally by selling their shares after the initial 90-day lock-up period ends. Trading is allowed during market hours through the Rally app, where investors can place bid (buy) and ask (sell) orders.
The ability to sell shares and, consequently, the possibility of getting money back depends on market demand and finding a buyer at the desired selling price.
After purchasing shares, investors must also observe a 5-business-day holding period before they can re-sell their shares, adding another layer of timing consideration for getting money back.
The process of selling shares and the timing for recovering invested funds can vary based on market conditions and the specific asset's demand within the Rally platform.
What are the annual fees for Rally?
Rally aims to make investing in alternative assets accessible and affordable, hence it does not charge any commissions or management fees on the value of your investments.
However, Rally does incorporate a sourcing fee into each initial offering. This fee is part of the offering price you see in the app, and it covers the costs associated with sourcing, verifying, and making the collectible available for investment. The exact amount of this sourcing fee is detailed in the offering circular for each asset, ensuring transparency so investors know exactly what they are paying for.
For those using Rally's Instant Cash feature, which allows for immediate transfers, a fee of 1.5% of the transfer amount is charged, with a minimum fee of $0.25 per transfer. New users benefit from a 14-day free trial period from sign-up, during which these fees are waived. After the trial period, these fees will apply to future transfers. Importantly, Instant Cash fees are added to the transfer amount rather than being debited separately, so a $100 transfer would result in a total debit of $101.50 from your bank account.
How do I handle my investments in Rally?
On Rally, investors have the ability to manage their collectible asset investments through several key actions. After the initial 90-day lock-up period, investors can actively trade their shares during designated market hours, allowing them to adjust their positions based on market conditions or personal investment strategies. This includes the ability to place bid and ask orders through the Rally app, providing a level of control over the buying and selling process.
In addition to trading, investors can monitor the performance of their assets directly within the app. Rally provides detailed information about each asset, including historical data, condition reports, and market trends, enabling investors to make informed decisions. This transparency allows for a more hands-on approach to asset management, as investors can track the value of their investments over time and consider diversification strategies within their collectible asset portfolio.
How does Rally get taxed?
Rally provides tax reporting support to its investors by issuing necessary documents for tax purposes. Investors who have sold shares or received dividends during the calendar year will receive a Form 1099 for reporting these transactions on their tax returns.
However, investors who have only purchased shares and have not engaged in selling or receiving dividends will not receive a 1099. These tax documents are made available through the investor's Portfolio section on the Rally platform by March of the following year, ensuring investors have ample time to prepare their tax filings.
In addition to annual tax documents, Rally offers monthly statements to investors with active investments. These statements provide a detailed overview of the investor's portfolio activities and are typically ready to view in the Portfolio section by the first week of every month. It's worth noting that new investments may take up to two months to be reflected in these monthly statements, allowing for processing and integration into the overall portfolio overview.
How many investors are on Rally?
The website received an average of 53,000 visits in the last 3 months.
The platform boasts approximately 200,000 users. This diverse community of investors contributes to a dynamic and engaging marketplace for buying and selling equity shares in collectible assets.
In terms of financial metrics, Rally has nearly $30 million of merchandise under its purview. This figure represents the total value of the collectible assets that have been securitized and made available for investment on the platform. The valuation of these assets indicates the premium nature of the collectibles Rally sources, verifies, and acquires, ranging from rare automobiles to sports memorabilia and historical artifacts.
The platform's asset catalog includes 459 distinct assets, each with its own unique story, provenance, and investment potential. This extensive and varied catalog allows investors to diversify their portfolios not only across multiple assets but also across different classes of collectibles. The diversity of the asset catalog is a testament to Rally's dedication to offering a wide array of investment opportunities that cater to the varied interests and investment strategies of its user base.
Who is the CEO of Rally?
Rob Petrozzo serves as the Co-Founder and Chief Product Officer of Rally. In his role, Petrozzo is primarily responsible for the platform's product development and user experience, ensuring that the service remains intuitive, engaging, and accessible to investors of all backgrounds.
Christopher Bruno holds the position of Founder and President of Rally. Bruno's leadership has been instrumental in driving the strategic direction of the company, focusing on growth, scalability, and the expansion of investment opportunities offered to users.
Max Niederste-Ostholt is a Co-Founder and serves as the Chief Financial Officer. Niederste-Ostholt brings a strong financial acumen to the team, overseeing the financial operations and strategy of Rally. His expertise ensures that Rally operates on a sound financial basis, optimizing returns for investors and securing the platform's long-term viability.
