FREQUENTLY ASKED QUESTIONS
What is Dibbs?
Dibbs is the world's first 24/7 market for instantly trading fractional interests in sports cards. The Dibbs platform allows customers to buy, sell and trade fractions of sports cards from any connected device with just a few clicks.
How does it work?
Dibbs uses tokenized representations of physical sports cards (Card Tokens) to enable instant trades, either for a full Card Token or a fraction of one. These tokens exist and are transferable on multiple blockchain networks. The physical cards are held by a third-party custodian. A holder of 100% of a Card Token can choose to take possession of their card by surrendering the Card Token to the custodian and requesting shipment of the card to their address.
Who owns the assets on Dibbs?
Dibbs uses a consignment model, meaning that owners of Card Tokens use Dibbs to sell directly to you.
Where are the physical cards kept?
All physical cards are held by a third-party custodian. If you hold 100% of a Card Token you can choose to take possession of the physical card by surrendering the Card Token to the custodian and requesting an IRL shipment.
All cards on Dibbs are held by PWCC Vault, LLC, or other third-party custodians which meet the strict requirements set forth in our User and Consignment Agreements.
The PWCC Vault was constructed using the guidelines established by the Underwriters Laboratory, and it received its highest classification of Class III.
Are the physical cards insured?
Absolutely. All cards on Dibbs are insured by PWCC Vault, LLC for at least their aggregate value. For more on PWCC's terms and insurance, see https://www.pwccmarketplace.com/vault-services-agreement.
Are the assets secured and maintained?
To quote our vaulting partner PWCC's description of their vault and asset security, "The Vault was constructed using the guidelines established by the Underwriters Laboratory and we are proud that it received UL's highest classification of Class III. It is 2000 square feet and surrounded by 11 inches of concrete on all six sides. There are 140 security cameras, motion detection, security during business hours, and rigorous access control and security protocols."
What is a "Drop"?
A Drop is a card that is being offered on the platform at a set price for a specific period of time. Usually, Drops are how new cards are added to the Dibbs’ marketplace.
What is a "Card Token"?
When we receive a physical sports card, we create a digital representation of that card so that it can then be instantly traded on our platform either as a whole card or a fraction of one.
This digital representation of the physical sports card utilizes a blockchain technology called an NFT (Non-Fungible Token). Specifically, Card Tokens are non-fungible Digital Assets that exist and are transferable on the WAX and Ethereum network. We are actively adding support for more blockchain protocols.
Card Tokens are then fractionalized for trading using smart contract technology. Fractions of Card Tokens may be represented by fungible Digital Assets.
What is an "Order Book"?
An order book is used to record the interest of buyers and sellers in the market for a particular Card Token.
An Order Book is arranged by price for buyers (green) and sellers (red). The green orders are buy orders, and the red orders are sell orders.
Simply put, the Order Book is a list of the various orders that would be placed at various price levels. Understanding and observing the Order Book will help you understand the level of demand or interest in a given Card Token based on other orders placed by collectors on Dibbs.
What is a "FRAC PACK"?
FRAC PACKS are a digital version of a trading card pack. Every new user receives a FRAC PACK in their Collection after their first successful deposit of $20 or more.
Each FRAC PACK contains fractions of at least three graded cards held by a third party custodian. The amount of Card Tokens and their value may vary by card.
What is a "Player Collection"?
Our "Player Collection" feature allows customers to purchase Card Tokens in all of a particular athlete's cards available on Dibbs at the time of purchase in a single click. When you use the Player Collection feature, your buy order will be spread evenly across that athlete’s cards based on their prices relative to the total value of the Collection so that you end up with an equal percentage of Card Tokens in each of the athlete's cards. Think of it like a pack of cards that only includes cards of your favorite athlete.
For example, consider a Collection consisting of three cards: Card 1 (current price $100), Card 2 (current price $200) and Card 3 (current price $300), for a total Collection value of $600 ($100 + $200 + $300). Because $100 / $600 = 16.7%, $200 / $600 = 33.3% and $300 / $600 = 50%, however much of the collection you decide to buy needs to be allocated in these proportions to each card. So if you buy $6 (net of fees), you would effectively be placing a $1 order for Card 1, a $2 for Card 2, and a $3 order for Card 3, resulting in a 1% interest in each card..
What is a real-time, 24-7 card market?
Exactly what it sounds like (and pretty much what you’d expect from any online trading platform).
You can trade any time of day (or night) because prices are determined by market participants (that’s you!) and the laws of supply and demand.
What trading fees will I pay?
Each trade will include a fee ranging from 0.1% to 5.0% of the Order Value, paid by the buyer.
For a complete breakdown of fees visit: https://dibbs.io/fee-schedule
What is "KYC" and why does Dibbs need all of this private information?
Know Your Customer, or KYC is how we verify a customer’s identity, making sure they aren’t on any prohibited sanctions lists and helping to ensure criminals do not use our platform for illegal purposes. A related term, AML, stands for “Anti Money Laundering”). Institutions that take deposits such as banks or brokerages (or Dibbs!) are required by law to verify certain personal information to confirm that you are who you say you are. That’s KYC / AML. A procedure to confirm your identity and therefore guard against illegal activity.
We require all users to submit identity verification documentation in order to comply with our banking partner's (Primetrust) KYC and AML requirements.
Our KYC / AML process typically takes a few minutes. In rare cases however our banking partner must manually verify your identity which can take a lot longer. Regardless, you will receive an email once your information has been approved. Important Note: Please do not send personal identification (ie. Driver's License, Passport) to Support directly.
Who or what is Primetrust?
Primetrust is our banking partner. Primetrust is a financial institution that provides compliance, identity verification and processing services.
Is my personal information secure?
We employ a number of measures to protect your account and your data and to promote a safe and secure experience on Dibbs.
These security measures include the following: Sensitive details, such as your social security number, are encrypted before they're stored.
Our mobile and web applications securely communicate with our servers using the Transport Layer Security (TLS) protocol with up-to-date configurations and ciphers. Once we verify your banking credentials, we'll never read them again. We use trusted third-party integrations that mask these credentials to access bank information like account number and available balance. The mobile app can be secured using TouchID, FaceID, or a custom PIN code.
We also offer two-factor authentication with an external authenticator app or via SMS. We highly recommend enabling these features on Dibbs and any other application you want to keep secure.
How do I start collecting?
Step 1. Download the Dibbs mobile app or use the web app on any supported browser.
Step 2. Create an account using email and password.
Step 3. Follow the prompts to complete KYC.
Step 4. Add a payment method (Credit Card, Debit Card, Wire Transfer, ACH) and deposit funds.
Step 5. Start collecting!
How do I add money to my Dibbs account?
Adding money to your Dibbs account is simple! After completing the KYC process, customers will have the choice of depositing money using Credit Card, Debit Card, Wire Transfers or ACH.
What happens when I place a trade, and what are the different types of trades?
There are four types of trades:
- Buy (Instant market order): Your order is executed instantly but only at the best price available relative to the current sell orders in the Order Book. The price will be calculated for you; this is the “Average Price” at which your order will be executed.
- Sell (Instant market order): Your order is executed instantly but only at the best price available relative to the current buy orders in the Order Book. The price will be calculated for you; this is the “Average Price” at which your order will be executed.
- Conditional Buy (limit order): Your order is only executed at the maximum price that you’re willing to pay or less, which you provide. This means the order may not fill immediately, but rather if and when the market reaches the price you set.
- Conditional Sell: Your order is only executed at the minimum price that you’re willing to pay or more. This means the order may not fill immediately, but rather if and when the market reaches the price you set.
Can I buy an entire card off Dibbs?
Yes! - Some cards have a lockup period that can range from 12-24 months, while others can be bought out completely at any time.
Assuming that there is no lockup period, there are two ways this can happen:
• Where we only hold a single physical version of the card in our vault, you may be able to buy the card with a User Buyout:
- You must obtain 75% or 0.75 Card Tokens
- You then pay a premium of 33% over "Market Price" for the remaining Card Tokens to complete the buyout
• Where we hold more than one physical version of the card in our vault:
- You must obtain 100% of the card or 1.0 Card Tokens
- No premium is required; you acquire the card interests at market prices
A User Buyout can only be executed by the first user to acquire 75% of the Fractional Tokens associated with the Card Token. The Card Token’s sale price in a User Buyout transaction will be 133% of the Market Price, with payment of the sale price being made pro rata to holders of Fractional Tokens being purchased in the User Buyout.
What happens once I buy an entire card? Can I have the physical card?
Of course. Once you buy out 100% of a specific card, you can choose to have the physical card shipped to you from the Custodian
You can also move the Card Token off of Dibbs using a compatible blockchain wallet, which can then in turn be traded on compatible NFT marketplaces. If a third-party then purchases the Card Token from you, the terms of the smart contract will enable the new owner to choose physical shipment to their own address.
Please see the User Agreement for more details.
How do I withdraw funds from my Dibbs account?
Funds can be withdrawn from Dibbs using Wire Transfers to your bank of choice or ACH.
How do I list my own cards?
We are working on a seller dashboard and portal for new sellers, but for now, we are not taking on any new sellers. With that being said, stay tuned for updates on enabling new sellers!
Is blockchain technology used on Dibbs?
Yes, the Dibbs Platform allows users to trade Card Tokens that represent ownership of sports cards.
Card Tokens are non-fungible Digital Assets that exist and are transferable on multiple blockchain protocols, including WAX and Ethereum with support for more protocols being added continuously. Fractions of Card Tokens may be represented by fungible Digital Assets. Each sports card on Dibbs has a corresponding NFT (Non-Fungible Token) containing relevant data about the specific card. The NFT's are then fractionalized using smart contract technology and the fractions are traded on Dibbs.
If a Dibbs customer executes a buyout of a specific card, they will have the option to receive the NFT (using a compatible blockchain wallet) for the card, instead of having the card immediately shipped to them. This NFT can, in turn, be traded on compatible blockchain-based marketplaces. The NFT's can be redeemed for the physical collectible and shipped to the NFT owners address.
Please see the User Agreement for more details.