Non-fungible tokens, or NFTs, were all the rage throughout 2021 with collectors shelling out thousands, and in some cases, millions of dollars to own these digital collectibles. Some collections, like Bored Apes Yacht Club, Crypto Punks, and others, have floor prices of over a hundred thousand bucks.
With all the hype surrounding these digital assets, it’s only fitting that more and more big brands are beginning to dive in. Recently, we’ve heard about several sports teams, entertainment companies, and large multinational corporations, getting involved in the space.
So, when new companies dive in, it’s no longer a surprise.
However, I wouldn’t be writing this article unless another big brand has decided to try its hand at digital collectibles. So, who is it? Ferrari. That’s right, the sports car legend has decided to get into the NFT industry.
Here’s what’s going on:
Ferrari Announces Web3 Entrance
As mentioned above, Ferrari is the next big name to announce that it’s getting into the Web3 industry with the launch of an NFT collection of its own. According to the announcement, the famed sports car company has inked a deal with a Swiss technology firm by the name of Velas Network.
Between Ferrari and Velas Network, the pair hopes to create NFTs for fans of the luxury sports car maker. These NFTs will allow fans to own rare digital artifacts that come with verifiable ownership through the blockchain and are backed by cryptocurrency.
The agreement between Ferrari and Velas Network will begin during the next racing season when the tech firm will provide digital products and services as part of Ferrari’s Formula 1 racing team. The agreement is a multi-year one too, suggesting that Ferrari isn’t just dabbling in NFTs, it’s planning a long-term strategy.
In a statement, a member of Ferrari’s team had the following to offer:
“Velas will be Title Sponsor of the Ferrari Esports Series, the online mon-brand series of the Prancing Horse, and of the Esports team that will compete in the F1 Esports Series, the official digital championship competed in by all teams participating in the FIA Formula 1 World Championship.”
Why Would Ferrari Want to Get Into NFTs?
The answer Ferrari would likely give to this answer is probably about the same answer you could expect from any other major brand, and it’s a multi-fold one:
- Relationship Building. NFTs have proven to be a great way for major brands to build relationships with their audiences. There’s no question that this will be one of the goals for Ferrari as it launches its own collection.
- Earn Revenue. Recently, Adidas brought in over $20 million in a matter of hours with the launch of its NFTs. That’s not chump change. So, I’d imagine that Ferrari is looking to cash in also.
- Stay With the Times. The fact is that the Web3 technology being made available today is laying the groundwork for the internet of tomorrow. As this continues, big brands that jumped into the industry early will likely reap major rewards.
The Bottom Line
The bottom line here is simple. Ferrari is joining a long list of top brands that are diving into the Web3 community. As this trend continues, and more and more brands get involved, it’s becoming impossible to discount the validity of digital assets.