Cars and Crypto: Popular Auto Brands Introduce Their Own NFTs
The automobile industry has always been known for endless innovations, so it comes as no surprise that since the end of 2021, many famous car brands have started experimenting with NFTs and the metaverse.
But how are they using this technology, and what do they see in it? Most importantly, how can their customers benefit from these partnerships? The list of collaborations is long, but let’s mention some of the brands that have made major headlines in recent months.
Hyundai and the World’s First Community NFTs
The Asian car manufacturer Hyundai has become the first of its kind to issue community-based NFT tokens. This announcement came after the automaker joined forces with the global NFT 3D project Meta Kongz. The partnership entails releasing 30 rare digital collectibles to introduce Hyundai’s brand-new Metamobility Universe.
A short video was made to celebrate the occasion, showing a Meta Kongz gorilla driving both a classic and a modern Hyundai Pony from Earth to the Moon. It’s supposed to demonstrate how far imagination and mobility can take us. At the end of the clip, the viewers are introduced to a limited-edition Shooting star NFT that is on sale.
The Metamobility Universe is Hyundai’s metaverse with unlimited freedoms and possibilities. New projects will be announced throughout the year to expand on the original idea. In addition, the developers are planning to introduce a VR device that can connect to the metaverse and submerge the holders in virtual reality. All owners of Hyundai NFTs will be allowed to enjoy the Metamobility Universe in full.
Ferrari Partners with Velas Network
A different car brand was faster in striking a deal with a blockchain company than Hyundai. In late December 2021, it was announced that Ferrari had started collaborating with Swiss NFT developers Velas Network.
The agreement foresees digital content creation for the Ferrari brand and their fanbase, particularly the Scuderia racing branch and the Esports division. Velas will also become an official sponsor of Ferrari’s Esports team.
Owning the world’s most successful Formula 1 race car as a non-fungible token can soon become a reality. However, what products and solutions will be developed remains a mystery: an NFT collection, a whole metaverse, or maybe a Ferrari cryptocurrency!
Lotus Cars + NFT PRO + Ripple
The British sports car manufacturer Lotus Cars has partnered with Web3 platform NFT PRO and Ripple to create exclusive digital content. This joint venture foresees the release of automotive NFTs on the carbon-friendly XRP blockchain.
This is the brand’s first journey into the world of Web 3.0 and non-fungible tokens, and they plan to leave their mark in it. Lotus car owners, NFT collectors, and crypto enthusiasts will gain access to exciting online content.
All NFT tokens will be created in-house and will display the values of this iconic car brand. Collection owners will be able to experience Lotus cars in a digital environment. In addition, they will receive benefits specially crafted only for collectors.
McLaren Racing Digital Collectibles
The F1 team of McLaren Racing has launched its own NFTs platform on the Tezos blockchain, and the company moved into the metaverse in October 2021. The new site allows racing fans to purchase and collect unique digital content for one of the most successful F1 franchises in the world.
The McLaren Racing Collective allowed users to collect all 3 Arrow McLaren SP Indy 500 cars and, in that way, become part of their digital community. The collection was sold out, and all buyers had the chance to be part of a virtual call with the drivers who participated in the 2022 Indianapolis 500 race held on 29 May 2022.
McLaren has also created the MSO LAB as part of its metaverse roadmap. The first collection was invite-only and featured one of the most recognized supercars ever produced – the McLaren P1. Owners of the collection receive exclusive gifts like digital sketches of their cars, airdrops available only to members, and virtual tours of McLaren’s headquarters. Around 2.000 items from the company’s Genesis Collection are on sale on the NFT marketplace OpenSea.
Alfa Romeo Verifiable on The Blockchain
The new era for Alfa Romeo begins with an electric SUV equipped with a blockchain certificate. In addition, The Tonale 2023 will have its own non-fungible token, enabling public verifiability that the car has been serviced regularly.
The NFT shows ownership rights and records how the vehicle has been used from the moment it was purchased. A model with a spotless status could bring in more money if resold. Blockchain data is irreversible, and the public records guarantee greater trust between a dealer and a buyer.
Car Financing with Cryptocurrencies
It’s not just individual car brands that are venturing into the world of crypto. Financial service providers are changing their ways and have started supporting digital currencies as means of payment.
Auto1 FT is one such company that operates out of Germany and France. They are a financial partner in the car industry. Their newest offer includes replacing manual paperwork and procedures with Ethereum smart contracts. As a result, the entire life cycle of cars financed by Auto1 FT will now be recorded onto the blockchain, ensuring better data security and greater efficiency.
Buyers have to spend less money on paperwork and have a public ledger that they can trust, thanks to its tamper-proof nature. Ethereum smart contracts can be configured to generate binding agreements between two parties with no human intervention. The entire vehicle history, servicing information, and proof of ownership are recorded on the blockchain.
Over on the North American continent, CarNow and Cion Digital have teamed up to offer American and Canadian customers a chance to purchase cars with cryptocurrencies. CarNow provides automotive services to over 5.000 dealerships across the country that can now integrate and use crypto for car financing.
Buyers can pay for their vehicles entirely with digital assets, make a down payment, or combine crypto and fiat options. Many of the top 20 cryptocurrencies are supported by Coin Digital, such as Bitcoin, Ethereum, Tether, Cardano, Litecoin, etc.
Using cryptocurrencies to purchase cars with CarNow and Cion Digital has several advantages over fiat. First, there is no need for credit checks. The dealers get their coins in a couple of minutes compared to the several days it takes with a traditional financial institution. Lastly, transactions are settled on-chain with no involvement from banks or other third parties.
Car Dealerships Are Accepting Crypto
Tesla and Elon Musk caused plenty of positive comments when the company started accepting Bitcoin. In fact, many other dealers all over the world have been doing it for years.
If you are in Georgia, USA, you could swing by the Carriage Auto Group and take a look at their offer of KIAs, Nissans, Mitsubishis, and Mazdas. They have been accepting cryptocurrencies since 2015.
In Orange County, California, Lamborghini Newport Beach has been selling popular sports cars for over a decade. In 2017, they introduced Bitcoin into their portfolio. Supercars can also be purchased for crypto in Europe, thanks to Bitcars located in Geneva, Switzerland.
If you are from England and a fan of BMWs, the Stephen James Enfield BMW dealership will gladly take your Bitcoin for a new or refurbished car. Japanese crypto fans can spend their coins in IDOM Inc., in one of 24 stores they have in the country. Bitcoin payments have been welcomed since December 2017. Luxury cars can also be acquired from L’Operaio, Japan. They have 3 branches in 3 different cities and sell Audis, Porsches, Mercedes, Volvos, Bentleys, Land Rovers, Jaguars, and many other brands. Since December 2017, it’s possible to purchase these cars with crypto.
Summary
No matter if it’s individual dealerships or entire car brands, many of them are all getting involved with crypto and blockchain technology one way or the other. Financing your new car and buying it with cryptocurrencies has been possible for several years already. Thanks to NFT technology, there is the potential to record the entire life cycle of a car onto a publicly verifiable ledger. Digital collectibles are unique and have great appeal to fans of luxury cars. With the increased popularity of the metaverse, a whole new virtual planet opens up. In it, token holders can collect, trade, and be part of an entirely new world with endless possibilities.
