The automotive industry has always been on the cutting edge of technology and innovation. Therefore it comes as no surprise that cars and car enthusiasts are coming to crypto.
The ways the auto industry has innovated are endless. Popularizing combustion engines, making carbon fiber mainstream, and bringing electric travel into the 21st century. Now, carmakers, car dealers, and even car racers are cashing in on the interest and innovation that comes with blockchain.
Tesla makes the headlines
Tesla is not the biggest car manufacturer in the world. However, it brought cars for crypto into the spotlight this year.
In March, Elon Musk announced that Tesla would begin accepting payments in Bitcoin.
The announcement was considered a contributing factor in the spike of BTC in the weeks that followed.
However, the celebration was short-lived after Musk backtracked his commitment to crypto over environmental concerns in May. The announcement by Musk once again affected the market, this time sending it crashing nearly $10,000.
Musk clarified his stance in a tweet afterward. It stated Tesla would resume selling cars for bitcoin if miners worked toward being more environmentally friendly.
Despite all the drama that surrounded buying Tesla for bitcoin, the incident did indicate that there is interest from the cryptocurrency community in paying for cars with their coin of choice.
Automotive inspired NFTs
While the NFT craze of 2021 is slowing down, it shows no signs of stopping.
It feels like every week there are multiple noteworthy NFT sales from digital artists, famous celebrities, or pro athletes. Many of these auctions are happening at historic houses such as Christie’s and Sotheby’s.
Automotive enthusiasts have always been clamoring for new ways to show off their appreciation. They are also looking for new rare collectibles to add to their display cases. This makes them the perfect home for NFTs to flourish.
One of the biggest stories includes a recent Barrett-Jackson Auction. It featured four NFTs commemorating real-world cars it sold for charity back in March.
What makes these cars particularly special is they are all VIN 001 automobiles. Therefore, each of the four cars sold, a Ford Mustang Mach 1, Ram 1500 TRX Launch Edition, and a 2021 Ford Bronco coupe, are all the first to roll off the production line for that model ever.
The NFT auction did not sell the vehicles themselves, but the digital rights to the sales. The winner received the digital packaging of an exclusive video, illustrations, and a trio of still images.
The auction company said that “It’s a digital piece of automobilia of sorts commemorating the sale of a spectacular VIN 001 vehicle.” The four NFTs sold for more than $60,000 in a matter of minutes.
Another big name to race into the NFT world is the Fast and Furious franchise. In the seventh edition of the long-running movie series, a very rare Lykan HyperSport was featured in a scene taking place in Abu Dhabi. The car, along with its NFT was auctioned off in May for $535,000.
Hot Wheels, technically a car manufacturer, also announced its intention of creating an NFT collection. It pays tribute to some of the more classic cars from its long history. Each NFT is a one-of-one and each sold for right around $5,000.