Today marks the day of Amazon’s first NFT investment. The now-trillion dollar+ company have invested into Dibbs, a platform that allows users to fractionalise sports collectibles, like physical sports cards as NFTs.
About Amazon’s NFT Investment, Dibbs
Dibbs is a startup that has created an NFT based marketplace. Their main selling point is similar to what we’ve seen before, with fractionalization. However, Dibbs puts a different spin on their marketplace. They are allowing users to fractionalise sports collectables like sports cards, making the most costly cards open to the average collector for as little as $1.
For the physical cards, they will be held in storage as fractions are sold as NFTs in the marketplace. This is an interesting view on fractionalization that we’ve yet to see before. The platform highlights giving authority back to fans. It recently launched a new feature in the marketplace, “Sell with Dibbs”, which allows card owners to sell fractions directly to other users. They have to submit the physical card to Dibbs, which stores it in a vault.
Notably, Dibbs uses several blockchains to conduct transactions. The main blockchain in NFTs: Ethereum, which has the benefits of mass amounts of users. Flow, which has benefits such as high capacity to support transactions, alternative scaling solutions and developer-friendliness. And finally, WAX has the benefits of environmental friendliness and ethics, something which Ethereum has been critiqued for in the past.
The Current Stats of Dibbs
So far, Dibbs have had many users and commerce. At the time of writing, they have conducted over 100,000 card trades. There are also 150+ player collections. 500+ cards have been listed. Finally, and maybe most importantly, they have over 17,000 users on the platform. This is in excess of their investment from Amazon, their first step into NFTs.
Also, they have been shown on Business Insider, SLAM and Forbes.
The Amazon NFT Investment
As part of $2.8 million worth of funding, Amazon was included in the investors into the NFT company.
Currently, Amazon is one of the largest companies in the world. Their investment and belief in NFTs may be key to the growth of the space based on the finances they have, as well as the users they have on their platform.
The advice that Amazon can provide to the project will be helpful for the growth of the project. Their financial offerings are not where the help will stop.
The Potential Legal Issue with Dibbs
There may be one legal issue with the project. Hester Peirce is the crypto-friendly Commissioner at the Securities and Exchange Commission who has been named CryptoMom. She lately was asked whether NFTs are securities. She responded that normal collectibles without revenue earning potential are not. However, she warned that people must be cautious about fractional ownership which could be sensed as converting the NFT into a security.
Peirce talked about fractionalizing an item that is already an NFT. It’s unclear if the idea from Pierce is applicable to Dibbs. The company described their use of NFTs as: “Physical assets available on Dibbs are assigned NFTs. Then fractionalized on blockchains including Ethereum, Flow, and WAX, with smart contracts defining ownership and other rights.”