Lyra Martin Tech 07.16.2022 08:Jul AM EDT

After Corvette Debacle, Do Automakers Wary About NFTs?

After Corvette Debacle, Automakers Wary About NFTs — Automakers take vigilance with NFT after Chevrolet's non-fungible token with Steve Aoki failed to acquire any bid.
Photo : Photo by Giorgio Trovato on Unsplash

Expecting to profit from crypto after its growth last month, Chevrolet developed a non-fungible token that eventually gained nothing.

Chevrolet's NFT Vehicle Flops in Achieving Bids

In June, Chevrolet hoped to profit from the cryptocurrency boom when a non-fungible token was created with Steve Aoki and sold for $1.6 million together with the last Lamborghini Aventador LP 780-4 Ultimate Coupe ever produced. It thereby provided a unique NFT with a vehicle motif.

Chevy showed a specially-painted 2023 Corvette next to a computer-generated image of a Corvette Z06 in a Blade Runner-style city. The acid-green duo from the Detroit carmaker didn't garner a single bid. A Corvette spokeswoman called the effort "very informative."

Chevy will eventually wade back into digital assets, Mr. Thompkins says. For now, the fiasco remains a stark example of the NFT market's epic volatility.

The mishap at Chevy serves as a warning for other automakers who don't invest the effort to develop worthwhile NFT projects for their fans.

In June, the company decided to join NFT and cash in on the fast-growing market. Its NFT project included a cyberpunk green Corvette Z06.

Despite extending the auction for a day, the business received no bids for the NFT. Corvette's Trevor Thompkins called the effort "educational." Chevy would continue its digital asset journey, he said.

On July 14, the average sale price for an Ethereum NFT was $391, an 84% reduction from May's $2,436. Dune reports that OpenSea sales have been down 75% since May.

The dip in pricing may cast questions on NFTs at organizations established on real-world tangible assets, but the drive to create money, crypto or not, isn't going away.

The mishap at Chevy serves as a warning for other automakers who don't invest the effort to develop worthwhile NFT projects for their fans.

Lamborghini-backed VSR Will Use NFTs to Validate Automotive Components

In order to develop a program that certifies racing vehicle components, Vincenzo Sospiri Racing (VSR), a GT racing team supported by Lamborghini's motorsport division, has announced its cooperation with non-fungible token (NFT) platform Go2NFT.

Former racing champion Vincenzo Sospiri from the VSR said in a message sent to Cointelegraph that their team would develop NFT certification for its race vehicles using Go2NFT and blockchain platform Skey Network. They will be able to keep an eye on and assure the quality of the auto components in this way.

In addition to the auto components, VSR wants to extend the NFT certification procedure to its other items, including official apparel. The team claims that this would offer customers confidence when buying branded items.

In 2022, the worlds of motorsport and cryptocurrency have already collided. In February, the cryptocurrency trading platform Bybit announced a $150 million collaboration with Formula 1 racing team Red Bull Racing.

Ben Zhou, the creator of Bybit, stated in an interview with Cointelegraph that the alliance helped his company connect with individuals who were unfamiliar with the cryptocurrency industry.