Courtyard.io & The Future of Trading Cards: A Blockchain Revolution

Unlocking Digital Ownership in a Booming Trading Card Market: A Deep Dive into Courtyard's Vision for Collectors in the Web3 Era.

What to expect: 1634 words a 6.5-minute read.

Intro

GM GM, make the wise decision trainer.

Alright so why did I go down this rabbit hole? As most of you know depending on when you started reading this newsletter, I am an avid pokemon card player and card collector. It is a form of gambling, fun and with my addictive nature, it is a release. So why am I writing about this company when they don’t even pay me?

I’ve been thinking about the correlation between sneakerheads and NFTs or TCG collectors vs NFTs. This is a common theme among many of us degens. A lot of the behavior we see in those subcultures are very prevalent in NFT culture.

None of this is new information for many of you, but nevertheless I wanted to explore this intersection of common sectors I like, how they collide and how blockchain tech sits in the middle of all this. In crypto we have a sense of trying to add blockchain to everything similar to how you can put AI in the middle of anything right now and people will eat it up. But there are bull cases where blockchain tech is ripe to change an industry and I think this is one of those cases.

So let’s dive in!

Trading Card Game Background

This is a deep dive into Courtyard.io, a platform powered by blockchain and protected by Brinks. It empowers card collectors to take control of their collection with a true digital ownership representation on the blockchain.

Some background to begin with: the global trading card game market is projected to grow from $6.39 billion in 2022 to $11.57 billion in 2030, almost double the increase. The market is expected to expand rapidly, at an 8% rate.

When looking at this from age demographics, divided into adults and teenagers, the teenager segment accounted for about 65% of the total market share in 2022. It's expected to keep growing significantly. From a card type perspective, character cards, autograph cards, or image cards are anticipated to continue dominating in the coming years.

If we consider sports cards and non-sports cards, sports cards only capture about 40% of the market. So, 60% of the market is non-sports related cards, such as Magic the Gathering and Pokemon. What's driving all this? Innovation and the rise of global liberalization are key growth drivers.

Trading cards are not only used as entertainment but can also be used as educational tools, aiding in critical thinking. If you've ever played Magic the Gathering Arena online or TCG Pokemon online, you definitely need some critical thinking skills to be successful. There are also tournaments that reinforce this.

Another key factor, and this is my personal opinion, is that Millennials are one of the first generations to grow up with specifically non-sports cards, like Pokemon and Magic the Gathering. This is important because as mentioned earlier, only 40% of the market is driven by sports cards. As Millennials move into higher positions and accumulate wealth, our affection for Pokemon cards, Magic the Gathering, and other types of cards like Yu-Gi-Oh, Digimon, will escalate the popularity of unique trading card games and continue driving the market.

This trend will not only strengthen among teenagers but also among adults, as Millennials age. If we look at it from a regional perspective, North America accounted for about 50% of the global market in 2022 and is predicted to continue being dominant. This is largely due to trading card games getting popular in Canada and the U.S., again because Millennials are getting older.

In Europe, higher growth trends and more consumer inclination to purchase cards are expected in countries like the UK, Germany, and France. This trend is evidenced by trading card grading companies expanding into Europe. Currently, European customers have to use an intermediary to get their card graded. But now, PSA is expanding to Germany for the first time, a big development for European enthusiasts.

This expansion will continue solidifying the trading card game market for people abroad and open new avenues for market growth. The games continue to be affordable and cater to both young and adult audiences, especially as Millennials keep getting older.

The current generation continues to age and secure stable jobs. They'll be able to afford all this. Evidence of this is apparent in Post Malone purchasing a $2 million card (yes it was MTG but the thesis remains) and the skyrocketing demand for Pokemon cards (Andre Jikh is a prime example).

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