Coinbase Enters Physically Backed Collectibles Market with Pokémon Partnership
Coinbase has announced plans to enter the physically backed collectibles market by partnering with The Pokémon Company. The cryptocurrency exchange wants customers to open Pokémon packs on their phones and collect real cards, which may never be touched. This new product is part of Coinbase's 'Everything Exchange' ambitions, which extend beyond conventional cryptocurrency trading.
The company has promised physical backing, vault storage, and delivery on request for its Pokémon packs. However, it remains unclear whether the platform will use a blockchain-based token to represent ownership, similar to existing models like Courtyard.io. In such systems, a card can change owners without moving an inch, as the token is transferred digitally.
Coinbase has entered a market already dominated by Gamestop's Power Packs, which offer digital packs containing physical cards graded by PSA for authenticity and condition. The top pack costs 100 times the entry price, ranging from $25 to $2,500. Customers can sell their cards back or keep them vaulted.
Phygitals, another physically backed card collectibles platform, advertises instant buybacks at 85% to 90% of a card's estimated fair market value. However, this percentage follows the card's estimated value, not the pack cost. The company also promotes public verifiable randomness, but this does not guarantee a profitable draw.