Collector Crypt Financials
Revenue
Collector Crypt (CC) generates revenue primarily through the following streams below:
Gacha Packs:
Players can purchase either a $25/$50/$250/$1000 Pokemon pack or $100 Sports Pack for a chance to win high value TCG cards. If a player choose not to keep the card, they can sell it back to CC via buyback whereby CC repurchase cards at 85% of insured value for $50 spins and 90% for $100 and $250 spins. Players have 72 hours to decide whether to sell back. If they choose to keep the card, CC incurs the procurement cost (typically 85% of market price). Buybacks/Repurchase are net off under Net Revenue. COGS (cards kept and redeemed/burn by user) will be net off under Gross Profit. Values for gacha packs here include payments made via credit card.
Ebay Sniping:
CC offers user the option to bid on eBay auctions through its in-house sniper. If users win an auction, CC charges a 1% fee based on winning bid amount.
Marketplace Royalties:
All trades conducted on secondary marketplace are subject to 2% royalty fee.
Redemption Fee:
When user wants to redeem their collectible/card, a 3% fee is charged based on the item's insured value. This fee also includes shipping and insurance costs which are included in the calculations on the dashboard.
Partnership:
CC engages in partnerships and collaborations with external projects (eg Moonbirds). Revenue from such mints - eg Moonbirds Collectible falls under this category. However, ME Gacha partnership revenue is classified under Gacha Packs and not partnerships.
Gross Profit
Gross Profit is calculated as Net Revenue (Total Fees/Revenue Collected - Total Repurchase/Gacha Buybacks) - Cost of Goods Sold (COGS).
COGS refers to cards redeemed or burned that originally came from the Gachapon machine. These costs are recognized only on day of redemption. If a user decides to keep a card, it is not recognized in Gross Profit until that card is later burned or redeemed.
The COGS will be 85% of the cards insured value which represents CC's approximate procurement cost.