Kevin O’Leary, a prominent figure known for his role on “Shark Tank” and as chairman of O’Leary Ventures, is making a significant pivot away from the world of non-fungible tokens (NFTs) to focus on rare, physical collectibles, particularly high-end sports cards. In a recent interview with CoinDesk TV, O’Leary shared insights into his investment strategy that includes co-purchasing a remarkable dual Logoman card valued at $13 million, which features legendary basketball icons Kobe Bryant and Michael Jordan.
This one-of-a-kind card is now considered a central piece in what O’Leary refers to as his “index” of unique collectibles. He articulated a long-term perspective on such investments, stating, “The majority of the returns over 20 years have accrued to the collectors who bought the piece uniques.” He likened this strategy to his successful investments in iconic Andy Warhol art and luxury watches. Rather than engaging in competitive bidding wars, O’Leary opted to partner with other investors, affirming that he would “rather own 33 and a third of it than zero.”
His investment in sports cards is characterized as a calculated move rather than merely a passion project. Reflecting on the significant appreciation in value of high-quality collectibles, he remarked, “It once traded for $75,000 years and years ago, but it shows you the price appreciation.” He anticipates a strong emotional response from collectors, noting, “Grown men are going to weep when they see this.”
In stark contrast to his enthusiasm for physical collectibles, O’Leary has expressed a firm skepticism towards NFTs. He described the NFT market as a fleeting trend, stating, “NFTs turned out to be a fad.” He elaborated that his investment philosophy centers on tangible assets, highlighting the absence of a physical presence in NFTs. “Where is the asset? Where can I put my white glove on and go touch it? That’s what you can’t do with an NFT,” he explained.
O’Leary’s dismissal of NFTs comes after a brief period of explosive growth in the market, which peaked in 2021 with trading volumes skyrocketing to $25 billion, a dramatic increase from just $95 million the prior year. The initial hype attracted numerous celebrities and major brands, yet the enthusiasm quickly dwindled, resulting in an over 80% decline in NFT sales by mid-2022 amid a broader downturn in the cryptocurrency market.
Despite his aversion to NFTs, O’Leary indicated that he sees future potential in the tokenization of his collectibles, suggesting that such a move would facilitate easier management and trading. “It would be much easier to deal with and manage them in an index that way,” he noted.
O’Leary frames his current strategy as aligned with a broader vision of “Wall Street on chain,” advocating for the adoption of blockchain technology. He believes that this infrastructure can modernize asset management, enhancing transparency, liquidity, and trust, particularly in markets that currently depend on intermediaries. He remains optimistic about foundational cryptocurrencies, including Bitcoin and Ethereum, as well as the infrastructure surrounding them, such as mining operations and exchanges.
