As the Christmas countdown intensifies, a frantic battle for the season's most sought-after toys and collectibles is playing out not in crowded shops, but on the screens of a rapidly growing live auction platform called Whatnot. This hybrid of eBay and a TV shopping channel has created a booming, yet controversial, marketplace where impulse buying meets gambling-style mechanics and professional resellers corner the market.
The Gamified Frenzy of Instant Bidding
Whatnot's explosive growth is staggering. Founded just six years ago in the US by Grant LaFontaine and Logan Head, the company achieved a valuation of $11.5bn (£8.5bn) in October 2025 after attracting investment from giants like DST Global and Alphabet's CapitalG. Its model is powered by an army of amateur auctioneers hosting livestreams where lots, from Pokémon cards to new trainers, sell in seconds. Bidders swipe right to compete, swept up in a rapid-fire patter from charismatic sellers.
The platform's special "break" sessions are particularly contentious. Here, participants can bid on "spins," essentially buying blind in hopes of landing a super-rare, high-value item from a box. While Whatnot states it does not allow gambling and that bidders know the range of possible items, experts see clear parallels. Dr Steve Sharman, a senior research fellow at the National Addiction Centre at King's College London, warns of the potential for harm. "The pressure and the speed at which auctions run are key features," he said, highlighting the "variable reward system" and the ease with which users can lose track of spending.
From Impulse Buying to Personal Crisis
This environment has proven dangerously alluring. One user recently confessed on the forum Mumsnet to accumulating £7,500 in credit card debt and a £1,500 overdraft after becoming hooked on Whatnot, describing it as an "impulse buyer's dream." She revealed she feared for her marriage and had contemplated suicide. Whatnot responded by highlighting account controls that allow users to set spending and time limits, and emphasised that wellbeing concerns are taken seriously.
The platform's defence of the secondary market is that "primary market prices often don't fully reflect consumer demand or value," noting that reselling limited-run products has occurred for decades in various venues. However, the scale and speed enabled by live streaming represent a new frontier.
Scalpers, Artificial Scarcity, and Angry Parents
Beyond addiction risks, Whatnot's focus on collectibles has amplified a broader issue: professional scalpers creating artificial scarcity for must-have Christmas gifts. Groups like "Crep Chief Notify," run by three men in their 20s from Manchester, have shifted from reselling trainers and concert tickets to Pokémon cards. They boast online about tactics like using multiple identities and paying strangers to bypass store purchase limits, as seen in a video filmed in a Costco car park.
Justine Roberts, founder of Mumsnet, notes "tonnes of festive frustration" as popular toys are "hoovered up in bulk and listed on resale or auction sites at hugely inflated prices." This practice feels "exploitative" to families on tight budgets and causes significant anxiety for parents. The impact is felt deeply within hobbyist communities. Lars Ohrvik-Stott, assistant games manager at Badger Badger board game pubs in south-east London, reports customers paying mark-ups of up to 250% on retail prices due to scalping. He states the practice has driven people away from the hobby and even led to aggressive incidents in stores enforcing purchase limits.
While eBay, which also offers live auctions, states it has strict policies for essential items and that non-essential goods prices are set by individual sellers, the ecosystem thrives. As Crep Chief Notify boldly declared via Instagram, with Pokémon "bigger than ever," there's "more profit than ever to be made" – a sentiment that underscores the challenging new landscape for consumers and collectors alike.
