Founded in 2019 by Grant LaFontaine and Logan Head, the startup transformed trading card and sneaker auctions into a high-speed, interactive spectacle. Backed by heavyweights like Andreessen Horowitz and Sequoia Capital, the platform is currently valued at $11.5 billion. Its rapid growth in 2025 saw 20 million new accounts created, yet this success has invited significant regulatory and legal pressure.
An attorney representing more than 70 claimants argues that the platform’s "breaks"—a system where users pay for a chance at high-value items—function as unregulated gambling. These legal filings suggest that the app’s frictionless, one-swipe purchasing interface encourages reckless financial behavior, with some claims even alleging fraudulent practices during live streams. LaFontaine has disputed these characterizations. In response to the growing backlash, the company introduced features such as spending limits and mandatory watch-time caps to curb compulsive behavior, maintaining that the platform remains a legitimate marketplace for hobbyists.
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