Rally

Rally is a digital platform that allows users to invest in collectible items, typically luxury or significant assets like classic cars, rare art, and sports memorabilia. The platform enables users to purchase shares in these collectibles, turning traditionally high-value items into more accessible investment opportunities for the average investor.

Understanding Rally

What is Rally?

Rally is a fractional investment platform that focuses on collectibles. It allows individuals to own a fraction of high-value items through the purchase of shares in a particular asset. This democratizes the investment landscape, making it possible for people who may not have the capital to purchase full ownership of a valuable item to still invest in it and potentially benefit from its appreciation.

How Rally Works

• Asset Acquisition: Rally acquires collectible items that have the potential for appreciating value.
• Share Offering: Once an item is acquired, it is registered with the SEC as a public offering of shares, allowing investors to buy into the asset.
• Ownership and Trading: Investors own shares of the asset and can trade those shares on the platform. When the item is sold, investors may realize gains based on the appreciation of the asset’s value.

Example of Rally

An example would be Rally selling shares of a classic 1967 Ford Mustang. Suppose Rally acquires the Mustang for $60,000 and registers it for public investment. If Rally issues 6,000 shares at $10 each, investors can buy shares in the vehicle.

– Initial Investment: $60,000
– Number of Shares Issued: 6,000
– Price per Share: $10

If, after a few years, the value of the Mustang appreciates to $90,000, Rally may decide to sell the vehicle. The gains can be calculated as follows:

Calculation Example

• Initial Value: $60,000
• Final Value: $90,000
• Net Gain: Final Value – Initial Value = $90,000 – $60,000 = $30,000
• Per Share Gain: Total Gain / Total Shares = $30,000 / 6,000 = $5

In this case, each investor’s shares would be worth $15 if they initially bought in at $10 when Rally sells the Mustang. The return on investment (ROI) for each share would be:

Per Share Gain / Initial Price per Share x 100 = 5 / 10 x 100 = 50%

Through this model, Rally enables fractional ownership in collectible assets, appealing to a broader audience and allowing them to diversify their investment portfolios beyond traditional securities.