12 Comments
User's avatar
Michael P's avatar

You make a great point that Quaid Walker seems to miss: this is explicitly NOT for collectors. This is for speculators who want the financial returns of the watch without collecting.

In theory, if there was enough liquidity to divert this crowd from flipping allocations, it’d actually be healthy. But disappointingly enough this is not designed as a mechanism to do that. It’s designed to predate on ill informed retail investors

Tony Traina's avatar

yea that's a good point actually re "if executed well, there's an argument that it's a net positive" (if you think getting 'speculators/flippers' out of the physical watches is a net positive.)

Ron's avatar
Mar 6Edited

It’s gambling. Gambling is not a financial product. It is just gaming. The system is mathematically rigged against speculative betters over the long term and I don’t understand what’s the economic utility of it other than recreational game of chance.

Tony Traina's avatar

yes, agreed

Matt F Walker's avatar

So we can now bet on whether a new Rolex is released, or if a different Rolex is dc'd? And betting on these things, isn't betting, and thus not subject to the same tax and regulations as betting under its' usual name 'gambling'.

Also, how dare anyone suggest that betting on something is betting when is so clearly it is "futures". P.s. what is "futures"? Oh, it's betting on something in the future?

Oh crap, we must stop using the word betting when this betting clearly isn't betting.

And stopping insider betting surely won't be an issue, nobody would use the fore knowledge to enrich themselves.

----

Hopefully it all collapses like the house of cards it is.

Tony Traina's avatar

i’d bet it does 🤣

Aman Brar's avatar

This feels like pay-to-win gaming more than anything associated with healthy markets: fun for some, but not exactly a model of logical decision-making or clean price discovery. A big missing piece is there’s no real arbitrage/hedging loop — you can’t cheaply trade the “underlying” across venues (with tight spreads, standardized condition, instant settlement) the way you can in real derivatives, so mispricings can just sit there. Folks are free to enjoy (go America). Still, there are better ways to lose money and spend time IMHO. To each their own as they say.

(Hopefully said Villaret came along side a Daytona lolz)

kingflum's avatar

Wayyyyy more numbers than I ever expected to read on Unpolished. Love it :)

Huey's avatar

No it's not lol.

Tony Traina's avatar

who are you responding to here?!

Huey's avatar

Repeating your footnote!