Gerry Palmers Tech 01.02.2022 23:Jan PM EST

Ferarri NFT: Should You Buy Ferrari Stocks After NFT Deal With Velas?

For many, owning a Ferrari is but a faraway dream.

With its models ranging from $250,000 to $1.8 million in price, owning that Prancing Horse is certainly only for those with deep pockets.

But in the world of non-fungible tokens (NFTs), this dream has definitely come closer. Ferrari NFTs have arrived, leading to an immense rally of Ferrari stocks.

Having such NFTs, particularly of luxury brands, are like owning the real thing--only that they are digital in nature. Brands like Louis Vuitton, Givenchy, Rolex and Hermes are seeing billions of dollars in earnings from the space.

Definitely Ferrari won't be left behind, and it's like you are cruising in that red road demon in the metaverse.

Ferrari NFT: Velas Deal to Expand Brand Presence in the Metaverse

The Italian luxury sports car manufacturer has partnered with Swiss startup Velas Network AG to produce and sell NFTs for its racing arm Scuderia Ferrari, Screen Rant reported. Velas Network AG is known worldwide for its blockchain, digital products and services.

The deal is a multi-year pact to jointly develop exclusive digital content for Scuderia Ferrari, a company statement revealed. While there's still no word on the specifics about the Ferrari NFTs and other digital products they would jointly develop, the automaker further announced that Velas is set to be the title sponsor of the Ferrari Esports Series, the luxury sports car's digital mono-brand and the Esports team that will compete in the F1 Esports Series.

When Formula 1 kicks off in 2022, the iconic red speedster will also show the Velas brand on it. Velas indicated that their partnership with Ferrari is ideal for both companies, since it claims being the "fastest and most energy-efficient blockchain" and the Prancing Horse sports car being the fastest in the world.

Blockchains running cryptos and NFTs have been highly criticized for its enormous energy use and its destructive impact on the planet. However, Ferrari picked Velas for this NFT initiative not only because of its speed, but also of its revolutionary platform. Ferrari stressed Velas "revolutionized" the blockchain world with a pioneering, energy-efficient platform that "operates at unparalleled speed."

Velas also indicated a wide range of services and benefits for Ferrari fans, without going into detail yet. The blockchain further said it will be "opening a new dimension for the sport and the brand."

Ferrari-Velas Partnership Leads to RACE Stock, VLX Crypto Surge

As such, is a Ferrari stock worth a buy after this deal?

Definitely, as analysts see this combo as perfect as both brands race forward not only on the physical racetracks but also on the metaverse. This would become a tremendous development and would provide immense opportunities for investors to profit, Entrepreneur noted.

Ferrari N.V. (RACE) stock is up 0.77 percent at the yearend's close at $258.82 despite a traditional sell-off of assets in the broader market. Velas's native token VLX, meanwhile, surged 6.19 percent to $0.40, mainly as a result of this agreement with Ferrari. The token is likewise expected to gain strong momentum as more details about the accord with Ferrari emerge.