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🟪What happened: Courtyard, a tokenization platform on Polygon PoS, is hosting an onchain auction of a first edition Holographic Charizard Pokémon card. The card has been tokenized as an NFT, representing ownership of the physical asset, with the current highest bid at $180,000.

🟪Why does it matter: The auction of this rare Pokémon card is arguably an example of a good reason to tokenize a physical asset. The limited supply and demand balance for collectibles such as Pokémon cards, sports trading cards and memorabilia creates increased concerns about authenticity, security and valuation.

Courtyard's digital marketplace introduces a new level of security, transparency, and liquidity for these collector's items. The items are even stored in Brink vaults with insurance.

By tokenizing real world items, buyers and sellers can be protected from common fraud and security concerns that are associated with collectibles markets.

Once a tokenized card is purchased on Courtyard, buyers are transferred ownership without any additional sales taxes or fees. The card is also redeemable at any time as holders can ship it from their digital collection to anywhere in the world.

By minting the card as an NFT, Courtyard not only ensures the card’s authenticity but also enables global trading of the asset, removing the traditional barriers for buying and selling collectibles. Also, trading onchain creates an open market where everyone can see past owners and the prices they paid, making the process more transparent and trustworthy.

With less than a week remaining in the auction, the price of this Pokémon card is expected to rise more as a similar card sold for over $400,000. This NFT auction can establish Courtyard’s platform as one of the gateway marketplaces for real-world tokenized assets.

🟪The big picture: The Charizard Pokémon card auction is part of the broader trend of tokenization of physical assets, which can revolutionize ownership and investing in similar high-value items. It's an example of how blockchain technology can be used for more than just digital currencies by extending its use to the valuable collectibles and real world assets.

The success of this auction could encourage more collectors and investors to consider tokenization of their assets, further driving the integration of blockchain technology into another industry.

Overall, tokenization offers many advantages including fractional ownership, which allows multiple individuals to own a portion of a high-value item. This can democratize access to investments in valuable collectibles that were previously out of reach for many. Instant liquidity is another benefit as it provides owners the ability to quickly buy or sell their ownership without the typical constraints of physical asset transactions.

By providing a transparent, efficient and secure marketplace Courtyard and Polygon have the potential to change how people invest in and interact with real world assets.

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This information is for entertainment purposes only. It should not be considered financial advice, nor should it be used to make investment decisions. Cryptocurrencies are high risk and you should consult a financial professional before making any financial decisions. Make sure you do your own research.