Dibbs, a platform for trading cards that launched in 2021, says it is shutting down operations of its marketplace.
The company says it will instead focus efforts on its “growing Tokenization-as-a-Service” business.
Dibbs allowed collectors to buy and sell cards but also fractionalize their items by selling shares to other users either on the web or via its mobile applications.
In a string of posts on Twitter, the company called it “an emotional day.”
Dibbs halted buying and selling functionality on its website at 3 PM Eastern time Wednesday while it “executed a buyout of all remaining customer-owned assets on the platform.” They say any remaining balances were made available for withdrawal. Customers were to receive a personalized email with their individual accounts and instructions on how to withdraw any money in their accounts.
“The decision to shut down Dibbs Marketplace activity was influenced by a variety of factors, including unforeseen changes to offerings from our payments provider and their partner banks,” the company wrote. “In order to ensure our customers’ ability to withdraw their funds from the platform, we needed to act swiftly and decisively,” adding via Twitter that “the current instability caused by the collapse of Silvergate Bank, Silicon Valley Bank or Signature Bank will not negatively impact the funds held within your Dibbs account. Your funds are secure.”
Founded in 2021 by Evan Vandenberg, Dibbs received $2.8 million in initial seed funding two years ago this month from as group that included PSA’s Nat Turner, Sports Card Investor founder Geoff Wilson and former NBA player Channing Frye. In July of that year, the company announced it had received a $13 million investment from venture capitalists and another group of current and former athletes including Chris Paul, Kris Bryant, Kevin Love and DeAndre Hopkins.
In December 2021, it was announced that Amazon had also invested an unannounced sum in the company.
Earlier that year, it claimed that it had executed hundreds of thousands of transactions involving millions of dollars.