Automobile companies are always known to keep up with the latest trend in technology to stay relevant. As we all know, the world of car manufacturing is a highly competitive market and customary practices will surely put your business at the bottom of the pyramid.
Perhaps, this pressure has put Lamborghini to foray into the train of non-fungible tokens (NFT) by launching its first original digital asset.
The product of this decision is the Lamborghini Space Key. Although, the product has no real utilitarian use as it will not jumpstart any of their iconic automobiles. Rather, it is the brand’s attempt to test the waters if they can jump into the NFT bandwagon.
What is NFT?
For those of you who aren’t familiar with NFTs, here is a quick textbook explanation of this term. A non-fungible token is a kind of original digital asset that exists within the blockchain and can have multiple uses.
It could be a digital sample of an artwork such as a graphic art, photo, audio or a video. The NFTs can also be used as an authentication of possession of a digital or tangible property.
For instance, you could stash the deed of your house or the title of your car as an NFT, in replacement of the paper documents. Even though these original tokens can have real uses, most of the NFTs being generated and traded in the market nowadays have no real-life significance or legitimate purpose.
Anyone can create an NFT in a short time, and you don’t even need a lot of creative or computer skills to do that, the value of these digital assets usually comes from the popularity being created around it and nothing more than that.
A spaced-out art
The Lamborghini Space Key is an excellent case of what we are talking about. The project includes five pieces of 3D-printed carbon fiber material that they issued to the International Space Station for experimentation. When they arrived back to Earth, the marketing team of Lamborghini saw a potential in the material to make money by turning it into an NFT.
These small pieces of plastic were embedded with a unique QR code on the backside of each piece that is connected to a digital artwork of an unnamed artist. To make it look posh, the whole thing was then put in a matte-surface metal frame and stashed away in a custom-built suitcase.
The artworks are set to be available for auction soon and it is no surprise that each piece is expected to be sold. After all, despite the huge figures attached to them, the worth of the name behind them bears more weight than other NFT projects ever launched so far.
Credibility is the key
Even though NFTs can appear as nonsensical at times, the marketing team of Lamborghini actually made a smart decision. We know that what we wrote just now is contrary to what we have written above, however, the brand’s first NFT project could be a gateway into many potential projects in the NFT world that might actually have real uses.
At the end of the day, the value of an artwork depends on how many people are willing to pay for it. I think people would choose a Lamborghini space block on their shelves rather than a Bored Ape piece that only resides in the digital world.
There are many NFT projects that have already made their debut and most of them are backed up by huge brands such as Nike, Gucci, Budweiser, Prada, and a whole lot more. This year, many NFT-related projects were set to launch that will be sponsored by global brands. The NFT bandwagon will continue for several years for sure.
If you are interested in this news in Singapore and other NFT-related articles, go to the site of The Straits Times.