Why I'm building Sentry

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Sentry is a bank for your collectibles.

TL;DR
Sentry is a startup that tokenizes physical collectibles so they can be used on the Ethereum Blockchain. It solves two major problems; asset vulnerability and asset illiquidity and is a step towards a future where the collectibles market is transparent and investing in it is accessible to anyone with an internet connection.
What is Sentry?
Sentry is a new way to buy, sell, own and invest in collectibles.
We tokenize physical collectibles (ie. sneakers, baseball cards, etc.) so they live on the Ethereum blockchain. The physical assets are stored in our vault and the NFTs are sent to the owner’s Ethereum wallet. Collectible owners are now able to use the NFTs to interact with the world of decentralized finance (DeFi). This makes buying, selling, and owning collectibles easier, safer, faster, and cheaper.
What problems are you solving?
Sentry is working to solve the two biggest problems facing collectible owners today; vulnerable assets, and illiquid assets.
Vulnerable Assets
  1. Collectibles are frequently stored haphazardly. Compared with assets of similar value or importance collectibles don’t get the safety and security they require during storage. Stock certificates would never be kept in a box in the basement but it seems a fitting place for the storage of baseball cards worth the same dollar amount.
  2. Collectibles take up a lot of space. For example, if you’re a sneaker collector living in an apartment in New York City with a collection value of $50k your sneakers are taking up a significant portion of your living space.
Illiquid Assets
  1. There is a lot of friction to selling collectibles. For an item to be sold an individual must photograph, post, package, and ship it. Depending on the platform being used to sell there may be price negotiations / product verification in a chat. Dealing with Web2 marketplaces means sellers must list and monitor assets across several platforms.
  2. A significant portion of collector’s net-worth is tied up in physical assets. With fractional NFT ownership it’s possible for an owner to fractionalize their collectible so they retain a % of the item while increasing their liquidity.
How does it work?
Sentry order of operations
Sentry order of operations
  1. A collectible owner can ship their collectible to us or if the live in a city where we operate they can request their item be physically picked up from their home.
  2. The item arrives at our secure facility where it is authenticated and photographed. Sentry will not allow fakes, knockoffs, or forgeries on our platform.
  3. Once the collectible has been properly vetted and photographed an NFT is minted and sent to the owner’s Ethereum wallet.
  4. That NFT can be used to interact with the world of DeFi. This includes fractionalization, loans, and insurance.
If a collectible is sold the new owner does not need to take physical possession of the collectible (unless they want to). The NFT acts as an “IOU” for the physical item. Whoever the current owner is can request the return of their physical asset at anytime.
The bigger picture
The future of collectible ownership goes far beyond geeks and hypebeasts. Web3 solves many problems collectible enthusiasts have in Web2 but the future has more upside than solving these problems.
As collectible markets grow and Web3 popularity increases access to a new asset class will also increase. Without the hassle of having to physically take hold of these items it becomes much easier for anyone anywhere in the world to build a portfolio of collectible assets.
Sentry asset investment portfolio
Sentry asset investment portfolio
Sentry’s long-term mission is to bring transparency and access to the collectibles market.
Sentry has the ability to do for collectibles what online trading platforms like eTrade did for the stock market. When online trading platforms were introduced liquidity, access, speed and transparency increased, and fraud and costs decreased. With 21st Century technology Sentry can further advance these qualities.
So much of the collectibles market takes place by handshake deals behind closed doors, without referees. Ethereum’s public ledger and the tokenization of assets will have a dramatic impact on investor/owner confidence.
High-net-worth individuals ($50M+) have historically allocated between 3-6% of their portfolio to collectibles with an average of 5%. (Deloitte) Our research shows that this is approximately the portfolio allocation that non-high-net-worth collectible enthusiasts have. For reference gold is approximately 3%.
A future where laypeople are investing in collectible assets or even collectible ETF-esque products is extremely likely. Who wouldn’t buy an ETF made up of Virgil Abloh’s Nike collaborations? I know I’d be a buyer.
Sign up for the Sentry wait list at www.sentryreserve.com.
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Essays
Essays @lucasecerbeg

I write about collectibles and my startup, Sentry. We tokenize physical collectibles like sneakers and baseball cards.

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