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Automakers Are Cautious of NFT Projects

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It is possible that numerous automakers who had previously indicated that they would be working on NFT projects will be forced to reconsider their plans as a result of Chevrolet’s decision to cancel the NFT project for the Corvette Z06. In August of 2021, Porsche decided to shelve their initial NFT project. An exclusive concept sketch that was created by Peter Varga, director of exterior design for Porsche, was included in the NFT. The sketch reportedly brought in 30.25 Ether, as stated by Porsche. Taking into account the current exchange rate for Ethereum (ETH), this amounts to slightly less than €37,000.

Since the development of the non-fungible tokens (NFTs) business, an increasing number of automobile manufacturers have shown interest in the emerging technology. This is because technology has the potential to increase consumer loyalty. There have been mergers that have resulted in success stories, such as the one Mercedes has experienced. However, there are also examples of undertakings that were unsuccessful. The Chevrolet Corvette Z06 NFT is a good example of an NFT experiment that was unsuccessful.

In June, the business made the decision to begin investing in NFTs in order to take advantage of the rapidly expanding market. The digital image for the NFT project was of a lime green Corvette Z06 set against a cyberpunk backdrop. In this year’s NFT, a real-life Corvette Z06 from the year 2023 was on display. In this instance, the auction comprised not just the digital token but also the actual car, which was going to be delivered anywhere in the United States.

In addition to this, the buyer would have the only right for a period of one year to choose the color of the car’s paint job, which would be an exact match for the color of the digital artwork. Chevrolet guaranteed that throughout that time period, they would not make another vehicle in that color.

However, Chevrolet’s fantasy turned into a nightmare when there were no offers received for the NFT, despite the fact that the auction was extended by one day in order to accommodate more potential buyers. The initiative has been “very educational,” as stated by the spokesperson for Corvette, Trevor Thompkins. He also mentioned that Chevrolet intends to proceed with the implementation of other strategies for digital assets.

According to the advice of specialists, businesses should develop alluring incentives.

The debacle that Chevy caused is an example of what may occur when manufacturers do not spend the effort to create relevant NFT projects for their respective fan bases.

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Jonathan Victor, business lead for NFT Storage and leader of the NFT division at Protocol Labs, offered the following commentary in response to the news: “You just have to think about what opportunities you have to engage with your user base.”

Alex Micol, the founder of Scalers Agency and Divergents Key, believes that the issue is caused by the crypto winter that is currently taking place. Therefore, those who create things should think in unconventional ways.

Micol continued by saying, “Car companies should focus on the value users get with their NFTs, not just a collectible. Don’t just give away a car to the highest bidder. Offer real value, like an invitation to an exclusive event or Formula One tickets. It should provide access to a community.”

In addition to Chevrolet, a number of other major automakers are working on their own NFT programs.

Due to the failure of the NFT project for the Corvette Z06, other manufacturers that had previously indicated that they would be working on NFT projects will likely be forced to reconsider their plans. Porsche and Bentley are two brands that come to mind.

In August of 2021, Porsche decided to shelve their initial NFT project. Porsche made an announcement regarding their future plans for non-fungible tokens in March of 2022. Even more, the company launched a webpage dedicated to Porsche NFTs. However, despite the fact that the website has been live for several months already, there are still no non-financial assets posted there for auction. However, representatives for Porsche have stated that the automaker is constantly working on improving these aspects.

On the other hand, Bentley presented NFTs for the first time last month. The business made the announcement that it intends to release its initial NFT collection in the month of September. According to the statement, the collection will consist of 208 NFTs, which represents the maximum speed that can be achieved by the Continental GT Speed. This figure also denotes the total amount of 1952 R-Type Continental automobiles that were manufactured.

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