What are the similarities and differences between Pokémon cards and cryptocurrency?
Written by: simple_peanut
Translated by: Felix, PANews
Given the rising popularity of the RWA sector in trading card games (TCG), there exists a knowledge gap among non-collectors and non-native crypto collectors in a field they may not have ventured into and may not be familiar with. Therefore, I decided to write this article over the weekend. The purpose of this article is threefold:
To introduce crypto players to the Pokémon TCG collecting hobby and its market.
To help those who only understand one of the fields to comprehend and point out the gaps that the Pokémon RWA protocol needs to fill or does not need to fill.
To share insights on this niche area.
Personally, I am a cryptocurrency enthusiast and work in this industry. I approach the crypto industry much like collecting Pokémon cards and interacting with fellow enthusiasts—sociable, enjoying making friends, and going out with them, while also valuing personal privacy.
I started collecting Pokémon cards at a young age (paused during high school/university, then resumed collecting later).
In the crypto circle, not many friends know about my hobby, but given the current trend, it feels appropriate to mention it now—it's clear from the photos below that I am a serious collector. I also have unopened cards and products. You could say I’m just riding the wave, having recently bought a bunch of these items to show off. But the truth is, the origin of these cards and products (both in the photos and in storage) is built on the innocence of childhood, combined with the effort and persistence of adulthood (I paused during university because Pokémon wasn’t “cool” then).
For wealthy cryptocurrency players, this may not seem like much, but for me, it took a lot of time and energy, thoughtful consideration, and a mix of intuition and luck (not professionally, but as a Pokémon collector) to develop my collection to its current scale.
Cards from childhood (pulled from packs) and adulthood (purchased during previous cycles). Most of the sealed products here are from the current cycle. Other cards from previous cycles are stored in the warehouse.
Childhood binder
Given that most readers of this article (if any) come from the cryptocurrency field, I won’t go into detail about $CARDS FDV or Pokémon TCG RWA protocol data, as there has already been plenty of discussion on that; instead, this article will strive to provide more insights from the perspective of Pokémon collectors/investors.
Pokémon TCG Collecting/Investment Market Cycles
In short:
The Pokémon TCG market has cycles of boom and bust, which is very similar to the macro economy and/or the crypto market.
Despite the cycles of boom and bust, the prices of Pokémon cards and sealed products have steadily risen over the years like a staircase.
That said, just like stocks or tokens, not every card and sealed product fluctuates in a "binary manner"—meaning that a price increase does not necessarily equate to profit.
It’s worth noting that in the 2000s, I was in my childhood to teenage years, during which I had no financial knowledge and did not understand cycles. It wasn’t until university and adulthood that I began to understand and experience cycles in the Pokémon TCG space.
Below is a rough sketch of the Pokémon trading card game cycles I have experienced, along with a detailed description of the catalysts for each boom cycle.
Catalysts for the 2016 Boom Cycle:
As I was nearing graduation from university, I picked up this hobby again (2016/17), coinciding with the release of the Pokémon TCG XY Evolutions series.
This hobby began to gain popularity because the XY Evolutions series cards are reprints of the original base set, albeit with slight differences that are quite noticeable. This nostalgia resonated with many young people who had played the base set as children, thus igniting the Pokémon craze in 2016.
Interestingly, 2016 was also the year the Mario and Luigi Pikachu promotional cards were released—each box sold for $30 to $40 at the time. Today, the price of the full-art Mario Pikachu ranges from $10,000 to $14,000.
Catalysts for the 2020 Boom Cycle:
The launch of Pokémon GO (mobile game) took the world by storm.
The COVID-19 pandemic:
People felt bored.
Government subsidies were issued.
Post-COVID, macroeconomic conditions/risk appetite increased.
The influence of Logan Paul and other celebrities—high-value cards were seen as status symbols:
Logan (influencer) flaunted his BGS 10 first edition base set collection featuring Charizard and PSA 10 limited edition Pikachu.
Logan publicly opened first edition base set booster packs during a live stream.
Steve Aoki (Japanese-American DJ and music producer) publicly expressed his interest in collecting and opened Aoki Card House.
- Many ordinary people followed suit—buying sealed products and opening them live, selling booster packs to viewers at high prices.
Catalysts for the 2025 Boom Cycle:
A generally favorable macro environment conducive to risk assets/bull markets.
Pokémon TCG entering the Chinese market:
The Chinese version of Pokémon cards was officially released in China.
Chinese players (wealthy individuals) began purchasing high-value cards, as they were not considered expensive for them.
The launch of Pokémon Pocket—opening digital card packs on mobile, attracting people to experience this feeling in real life.
The rise of card shows and card dealers; opinions from card dealers on YouTube became increasingly popular—people enjoyed seeing trades being made.
The chain reaction of the above factors: (i) Crypto-native users and RWA protocol users began purchasing complete sets and sealed products for investment and/or resale to users; (ii) Kevin O'Leary recently announced he has also become a card collector (sports cards); (iii) Various streamers began purchasing sealed products again, just like in the previous cycle, selling them at a premium to consumers and showcasing them during live streams.
Common Features of Each Pokémon Craze:
A positive macro/risk appetite environment.
The Pokémon Company always cleverly introduces a catalyst that may evoke nostalgia.
Just like in the crypto space, ordinary people (i.e., non-Pokémon card collectors) start talking about it, asking you questions, and sharing cards on Instagram.
Just like in the crypto space, new players enter the market.
There is a tight supply of Pokémon products; scalpers emerge, fighting over Pokémon card products in stores like Target/Walmart (a stabbing incident occurred in July), and disputes arise from queuing in every cycle.
Celebrity involvement: Logan Paul and Steve Aoki were highlights of the 2020 craze, while Kevin O'Leary is a highlight of the 2025 craze.
The emergence of streamers: a large number of sealed products are purchased (further driving up the prices of sealed products), which are then opened during live streams and sold to viewers for profit.
New Changes in the 2025 Cycle (which may ultimately be irrelevant from a financial and market cycle perspective):
The rise of merchants and card shows + videos from a merchant's perspective—experiences akin to the TV show "Pawn Stars."
The Chinese market and large buyers in China.
Crypto-native participants and cryptocurrency whales.
Commonalities between Cryptocurrency and Pokémon TCG Collecting/Investment
Both are forms of "gambling": whether done responsibly and thoughtfully or in a Degen manner (e.g., pack opening, blind box opening, trading NFTs/meme coins, etc.), both fields trigger psychological responses between the gambling mindset of the brain/human instinct to follow the herd and the hoarding instinct.
Both have cycles of boom and bust: people's attitudes/views towards them can be fickle and opportunistic—sought after during booms, dismissed during busts. (Just like last year when Ethereum was mocked, and this year it’s a point of pride to hold Ethereum.)
Both are highly volatile asset classes: both outperform traditional asset classes (e.g., the S&P 500).
Nuances: What Crypto-Native Users and Pure Pokémon Collectors/Investors Need to Understand
Here, I will emphasize more on "what cryptocurrency enthusiasts need to understand," as most readers of this article are from the crypto space rather than pure Pokémon collectors/investors.
Buying tokens or meme coins related to the Pokémon RWA protocol may seem foolish, yet there are still opportunities to make money. Just like cards featuring Pokémon designs, which may seem unremarkable, they can also yield returns.
Through blockchain technology, the TCG RWA protocol has the potential to offer something unique to collectors. However, in its current state, we have yet to see its maximum potential.
It is commendable that using cards as collateral for loans provides significant value enhancement for crypto players and collectors—this is an advantage of the TCG RWA protocol over existing traditional solutions in this field.
Just like Pokémon cards and sealed products, in the crypto space, the rise of tokens does not guarantee that all "boats will rise with the tide" (resulting in profits).
What Crypto Enthusiasts Need to Know (Feel free to ignore if you don’t care)
Just like cryptocurrency, collecting Pokémon requires experience, skill, knowledge, intuition, and luck.
The idea that the Pokémon RWA protocol can solve liquidity fragmentation issues is foolish for the following reasons:
Taking the stock market as an example, there are many traditional venues, such as Saxo, IBKR, etc. Beyond tokenized stocks, there exists a broader world and a larger market. Similarly, in the TCG secondary market, most trading volume occurs on eBay, TCGplayer, through Telegram OTC (over-the-counter transactions), numerous card shows around the world, and places similar to Facebook Marketplace.
Furthermore, regarding the tokenized stocks on the current RWA protocol, liquidity is weak. Additionally, an increasing number of RWA protocols are offering tokenized stocks in their own packaging, which will only further exacerbate the fragmentation of the stock market.
- For crypto-native non-collectors, it may be true that the TCG RWA protocol is doing something novel/revolutionary, but for collectors, this is mostly a myth:
Markets like eBay and card certification agencies like PSA already have vault custody services—sending your cards to a vault where they can even verify whether the cards (i.e., graded cards) are legitimate. You can choose to leave the cards there for easy trading or opt to redeem them and have the physical cards sent back to you. Comparing the proposals of the TCG RWA protocol with existing traditional solutions, they do not have a significant moat in their current state.
The tokenization of assets (such as stocks or government bonds) is very feasible for a huge reason: blockchain technology can provide T+0 settlement—(i) this improves upon the T+1/T+2 settlement times of traditional payment solutions, (ii) it extends trading hours from Monday to Friday to 24/7 year-round, (iii) buyers of stocks or government bonds do not want to physically hold the assets. In contrast, enthusiastic collectors/investors often wish to actually own the cards—emotionally, they enjoy having physical cards, and practically, they like to take them out occasionally to admire the physical cards.
However, when cards are used as collateral for loans, the tokenization of cards becomes feasible—this represents a significant value enhancement for consumers, and for non-crypto-native TCG RWA protocols, this can be seen as transformative.
That said, there are also some investors who participate purely for profit rather than out of love for Pokémon or the art—perhaps these non-crypto-native collectors could benefit from the TCG RWA protocol. However, such solutions already exist, just without blockchain accounting technology.
Similar gambling activities already exist on traditional platforms—like Whatnot. However, it should be added that the Gacha elements in the TCG RWA protocol are at least as good, if not better, than those on traditional platforms.
Just like tokens in the current cycle of the crypto space, in the Pokémon card realm, a rising tide does not necessarily lift all boats.
Just like tokens, there are blue-chip stocks, mid-tier tokens, and low-priced/meme coins, which have a small chance of skyrocketing but are very likely to never do so, remaining at a few cents/dollars.
Unlike those mediocre meme coins or NFTs, high-quality Pokémon cards and sealed products will not go to zero—this has been the case throughout the history of Pokémon TCG (about 30 years).
There exists a subjective and personal emotional (sometimes even sentimental) connection between collectors and the art and Pokémon in the cards. This intangible factor is crucial and serves as a key differentiator between cards and tokens, stocks, or meme coins.
Today, you can sell 1 Bitcoin or 10 billion meme coins, and if the price skyrockets tomorrow, you can easily buy them back on various exchanges. However, to give an extreme example, if I sell a Pikachu Illustrator card, of which only 41 exist globally today, it may take months or even years before I have the opportunity to buy it back. (This leads to discussions about fungibility vs. non-fungibility, supply, trading venues, etc.)
So what?
On whether the TCG RWA protocol is a necessary solution
If you read what has been written above, you will find that, for now, the TCG RWA protocol has not truly created anything revolutionary. Aside from the loan aspect, it serves as another channel for gambling and trading for crypto-native non-collectors and crypto-native TCG collectors, much like meme coins and NFTs. However, such solutions already exist, so from a collector's perspective, I do not believe the TCG RWA protocol fills any gaps that existing traditional solutions do not cover.
That said, I still believe the TCG RWA protocol can (i) attempt to compete with existing traditional solutions, and (ii) if it can fully leverage blockchain technology, it can fill certain gaps. I hope this situation occurs, as it would only benefit the hobby and the crypto space to develop together.
On market cycles and how to handle collections
Given the market cycles, now that you know the Pokémon TCG market has cycles of boom and bust, you might say that at some point, you should take profits or sell part of your collection.
Personally, I will not sell. From a purely financial perspective, you can call me a fool, and I would agree. However, I want to emphasize again that just because it is different from cryptocurrency, if I sell something now, I may not be able to buy it back immediately at the desired price. Rare cards are hard to find, and their owners are often unwilling to part with them easily.
Based on my entry timing, I am willing to accept some losses because I entered the market very early. That said, just like in trading, entry and exit are both important, and I will consider this when handling cards or products in my collection. You should do the same, just like in trading.
What is concerning is that those crypto-native non-collectors who venture into trading will sell off and abandon this hobby once Pokémon cards no longer bring them substantial profits or the market crashes—because, like stocks or cryptocurrencies, crypto-native non-collectors view these collectibles merely as financial assets, rather than items with emotional connections. However, I acknowledge that this is inevitable, just like in any other market during bull and bear cycles, and I do not mind it.
When this narrative ends with the broader bull market or the Pokémon card bull market cycle, this article will gradually be forgotten, and the time spent writing it may be entirely wasted. However, I believe the information here transcends the Pokémon card bull market cycle, so if you are willing, you can take a look.
The potential impact of the Pokémon card RWA protocol on the Pokémon card market
Perhaps many crypto players trading crypto versions of Pokémon cards actually have no emotional attachment to the cards themselves; they participate merely for profit, gambling, or both.
Like most hyped concepts in the crypto space, the craze will not last long, as most users of the TCG RWA protocol are crypto users. Moreover, since many players trading crypto versions of Pokémon cards have no emotional connection to the cards themselves, when this concept falls out of favor, the cards will be sold off, and the protocol's tokens will be sold off as well—just like how worthless meme coins and ordinary NFTs are treated.
Cards sold off by users may be repurchased by the protocol, but if the protocol cannot sustain itself due to reduced revenue, these cards may also be sold off by the protocol itself, or the founders may return to the traditional Pokémon trading card market with their card inventory.
This is why the hype/narrative around Pokémon card RWA could negatively impact the Pokémon card market, thereby harming non-crypto-native Pokémon card collectors, who may not even know the reason. For newcomers, this could be a lesson, or they may completely abandon the hobby. Similarly, for newcomers in the crypto space, if their initial on-chain experiences involve following the trend to buy $CARDS, and $CARDS drops after their entry, they will be afraid to participate in the crypto space.
That said, a counterpoint to this could be: from a more macro perspective, the RWA space for Pokémon cards is too small to have a long-term impact on such a large TCG market. I also agree with this.
In any case, I hope this article provides some inspiration. If not, I at least hope it brings you some value.
Tools: Pricing and Tracking Mechanisms for Cards/Products
How to assess card value during trading / How to typically track prices
Here are ways Pokémon card collectors/investors negotiate prices in practice, along with tools you can use—different people have different philosophies/methods, which may change based on their circumstances:
Look at the average of the past X completed transactions on eBay: This is the most commonly used method when trying to reach an agreement in actual transactions.
Aggregators: Price charts (https://www.pricecharting.com/)—may or may not be used in actual transactions as a reference for assessing card value during trading. However, its usage is much less frequent compared to the above tools. I believe it is a convenient way to get a rough view of the prices of ungraded cards (i.e., ungraded cards) or graded cards (i.e., graded cards).
Other aggregators - Collectr (mobile app): Similar to the above situation. Suitable for recording your cards and sealed products, buying and selling prices, and providing an overall estimated view of your portfolio. There are other similar alternatives.
TCGPlayer (tcgplayer.com)—similar to the above situation. However, the quotes here mostly reflect the prices of ungraded original cards or products, with conditions ranging from lightly used to nearly new.
Deficiencies in TCG market pricing / Additional factors
The pricing in the TCG market differs from that in the cryptocurrency market, where price references are obtained from major CEXs and DEXs through oracles—it is more centralized. However, TCG market pricing is more decentralized.
Over the years, aggregators have been established to compile sold items from major markets like eBay. But it is important to note that:
Many "over-the-counter" (OTC) transactions occur in informal markets such as card shows, Facebook Marketplace, Telegram/WhatsApp groups, and are not tracked. Therefore, pricing remains somewhat decentralized and inefficient.
Many people engage in arbitrage between online trading and OTC/offline trading—merchants at card shows are heavily involved in such operations, with their main income source being similar to market makers or liquidity providers, earning the spread and primarily relying on trading volume and volatility to sustain.
Although these aggregators have improved pricing, there are still manipulators who inflate prices in auctions to manipulate the pricing of these aggregators, solely to "inflate their own prices."
Here are some typical participants/players in this hobby:
Scalpers/resellers: Speculative opportunists. During boom cycles, many people flood into this hobby and will just as easily leave as they came. They can be said to be the least interested and most lacking in passion among the group. Some even know very little about Pokémon itself, coming solely for economic gain.
Collectors/investors:
Collectors/investors can play their own game in their own way—many of these individuals can approach this hobby in a wise and financially literate manner, possessing genuine passion while not forgetting the investment perspective.
Others may simply collect and purchase items that have no value and will not appreciate, purely because they like them—and this liking itself is priceless.
Just like traders, some people may trade frequently in a short period, while others take a slow and steady or dollar-cost averaging (DCA) approach. Some may just keep buying without ever selling, purely out of love.
Suppliers: They appear at card shows, with varying degrees of passion for the cards. Most are very enthusiastic. They can be seen as market makers/liquidity providers in the crypto space.
Distributors: If you know any distributors, these individuals are often veterans and likely represent companies. They have direct connections with the Pokémon Company and can purchase in bulk at low prices. These individuals supply sealed products to Pokémon Centers and some card shops. To become a distributor, it mainly relies on relationships built over many years, consistently purchasing Pokémon-issued TCG products regardless of market conditions.
Dealers' dealers: Similar to the above situation, but without long-term operations. They may operate B2B (e.g., supplying card shops) or B2C (e.g., selling to collectors/investors).
I hope the above information is helpful to you. As a seasoned collector, I sincerely hope you can maintain this hobby even after the Pokémon craze ends. Just like the cryptocurrency cycle, the end of a craze will promote exits, but there will still be new entrants. If you are participating purely for profit, then I wish you good luck.
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