In their disclaimer I read this:
Maybe this page will answer most of your questions -
https://collectable.com/disclaimer/
Super helpful junyab - so it looks like they are trying to say that these are all "private" offerings and what you buy / hold in any card is really an indirect interest in a series LLC that you trade through their platform. How that LLC interest is tied to any underlying card isn't totally clear to me. It says that all the docs should be available on the SEC website (Edgar) but I couldn't find them.
Upshot, if I've understood this correctly, is that:
1. These are not regulated by the SEC directly - they are subject to certain SEC rules but the SEC does not appear to be reviewing their offering materials in the way they would for a "public" offering
2. Unlike a public company, there is no periodic reporting filed with the SEC here
3. The mandatory internal controls rules and other disclosure / conduct rules that apply to public companies don't seem to apply
4. You can only resell / trade your interest on their platform - it can't be sold elsewhere -
5. Unclear who the "custodian" is - i.e., who is actually holding the underlying assets like a bank etc. that's bankruptcy-remote from Collectable if Collectable has a problem
6. Unclear if there's any ongoing audit requirements by an independent accountant to confirm that your assets actually exist
7. I expect you're going to be getting 1099s for all your trading - which obviously appears to be something that has cooled some (? or a lot) of the market for sports cards on eBay
8. You have to trade through their system via a broker - meaning every trade will have a commission charged (plus tax etc.)
9. You have to be an "accredited investor" to participate - meaning certain non-trivial income or net worth tests apply.
10. They say this about themselves: "There is substantial doubt about our ability to continue as a going concern."
11. Some things from the "Conflicts of Interest" section:
-"
Members of the expert network and the advisory board of the Manager are often dealers and brokers so may be incentivized to sell the Company their own collectibles at potentially inflated market prices."
... really everything in this section is probably worth a read...including that they can incur debt on your behalf for a series that holds cards?
Taking a step back and to going back to the underlying enthusiasm for this as an idea, it does seem like a really cool idea to offer fractional share in high end cards just seems like the market is in early stages with all that comes with it.
