SHINY THING$ 0161 ✨

We’ve gone full-dino here at Rally over the last few weeks as we prepare for the biggest IPO in the history of the company - a $13.75M Stegosaurus skeleton while its still be excavated and prepared for auction. 

It’s fitting that dinosaurs have dominated headlines over the last few weeks. Most recently, the “should dinosaurs be sold to private buyers?” debate caught newfound momentum after the $44.6M sale of the Stegosaurus “Apex” to hedge fund billionaire Ken Griffin. Some of that controversy was eased this past week when the American Museum of Natural History announced that the dinosaur would be on loan to the museum, unveiling it to a packed house and launching a new exhibit based around the specimen. 

But there’s another controversy that’s followed the dinosaur market. It’s an issue that often reveals itself when big money is involved in any asset class: the underground world of illegal trade. 

This week, in the 161st installment of Shiny Thing$, we’ll take a look at one of the earliest stories that highlighted what’s legal and what’s not as the dinosaur market has started its transformation into modern art. 

The US is one of the only places in the world where you can find a fossil on private land, and sell it anywhere in the world for profit.

While dinosaur-fertile land exists outside the US with major finds happening in places like Argentina, Brazil, and China, most countries put major restrictions on the sale and export of fossils and rare earth minerals. They’re considered cultural artifacts and governments want to keep them in the country — and most times, keep them in institutions within the country. 

While that adds to the scarcity of important fossils here in the US, it also opens the door for a criminal element. With nearly $100M in dinosaur sales worldwide over the last year, the demand is certainly there. And that, when it comes to international finds, created the issue.

One case in particular from the early 90s is still as relevant today as it was then, and only recently was resolved.

In 1995, a fossil unearthed from Brazil's Crato Formation was acquired by Germany's State Museum of Natural History. This specimen, later identified as Ubirajara jubatus, became the center of the dinosaur-ethics controversy, specifically related to its exportation.

Ubirajara jubatus was special.

The dinosaur was a compsognathid theropod that lived during the early Cretaceous period specifically in the area that is now Brazil, so beyond being important to the dinosaur community, it was extra important to the local community. 

Ubirajara jubatus is distinguished by its elaborate integumentary features, including a mane-like structure along its back and a pair of elongated, ribbon-like filaments extending from its shoulders. These features suggest complex display behaviors, offering valuable insights into the evolution of such traits among theropod dinosaurs. Long story short, it kinda belonged in a museum. 

Getting to the museum was the problem.

Brazilian law, established in 1942, says that all fossils are state property and prohibits their unauthorized export. The circumstances surrounding Ubirajara's removal from Brazil lacked clear documentation, leading to allegations of illegal exportation almost immediately. Brazilian paleontologists and institutions initiated campaigns and investigations to address these concerns and make sure their voices were heard over the cash register ringing.

The moral line of conducting a private sale had already been crossed, so the only stance from the scientific community became legal. 

But ethics were at the forefront of the argument. The Ubirajara case highlighted broader issues of scientific colonialism, where specimens from countries rich in natural heritage are studied and housed abroad, often without local collaboration. Brazilian scientists spearheaded movements advocating for the fossil's return, emphasizing the importance of respecting national patrimony and promoting equitable scientific collaboration.

Fast forward 25 years later… with the Ubirajara case still in limbo and still being battled in the court of public opinion, dinosaur fossils become one of the most popular collector pieces for the ultra wealthy. In the time that passed from the first protest of Ubirajara’s sale, everyone from Leonardo DiCaprio to Jeff Bezos had taken an interest and purchased dinosaur fossils both privately and at well publicized auctions. In the period since that 1995 sale, 10-figures in primary fossil transactions occurred. 

But the scientific community in and around Brazil kept the Ubirajara fight top of mind.

In July 2022, after extensive discussions and mounting pressure, German authorities agreed to repatriate the Ubirajara fossil to Brazil. This decision marked a victory for advocates of ethical scientific practices and the preservation of cultural heritage. 

The fossil was officially returned to Brazil in June 2023, 28 years after the sale, reinforcing the importance of adhering to legal frameworks governing the handling of invaluable artifacts.

The case set a precedent. It prompted museums and research institutions worldwide to re-evaluate their collections and acquisition practices, fostering a more conscientious approach to the stewardship of global natural heritage. But it also highlights how early we are in the current cycle of treating dinosaurs as Art. 

Can we honor the cultural and scientific patrimony of nations while also continuing the “privatization” of fossils. We believe so. With the US being a safe haven for the excavation and sale of dinosaurs, and with private owners more open to putting their purchases on public display for enthusiasts and the scientific community (as Ken Griffin did with “Apex” this past week), the future of the dinosaur trade feels like its headed in the right direction — both for the US and internationally — as long as private buyers aren’t tucking away landmark purchases from the public.

In most markets, all you have to do is follow the money. In this case, a lot of it seems to be starting and ending with the dinosaur-rich quarries out west.

“STEG,” the full Stegosaurus Skeleton known as “BCQ 24” IPOs on Rally later this month. Be sure to select the “Notify Me” button in-app to access share reservations starting next week. 

Until Next Week…