Rally Road Trading Arbitrage
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A story about how Jack Smith, a successful entrepreneur, created a systematic approach to profit from collectible arbitrage on Rally Road.
"Jack was very active on Rally Road and Otis, these marketplaces where you could buy fractional shares of unique items like collectibles - rare Pokemon cards, original box sets of Harry Potter, or portions of a 1965 Ford Mustang.
He didn't actually care about the items themselves. When I asked him about a Jaguar F1 he owned part of, he said 'I don't know what it was, I just saw it on a spreadsheet.'
What he did was create a team of 8 people in the Philippines who would research prices on eBay. They would constantly search and place bids to buy items below market price on Rally Road, then flip them on eBay. He had invested millions of dollars into this operation and was making 40-50-60% returns.
When I asked him about it, I was amazed at three things: how he even saw this opportunity, the balls to actually set up this operation with significant money, and why he spends his time finding these edges in the system. That's just what he does - he finds edges and exploits them, sometimes for profit but mostly for amusement."
Shaan Puri
Host of MFM
Shaan Puri is the Chairman and Co-Founder of The Milk Road. He previously worked at Twitch as a Senior Director of Product, Mobile Gaming, and Emerging Markets. He also attended Duke University.