Hot Wheels NFT Garage
What is Hot Wheels NFT Garage?
The Hot Wheels NFT Garage was announced by Mattel in 2021. The NFT Garage is a digital collectible. But to explain this, let’s first understand what an NFT is.
NFT – Non fungible token is a unique representation in digital form of anything such as, for example, a famous work of art, a song, a video or, in the case of Hot Wheels, a miniature. Generally, NFTs can be released as an exclusive item or in a very limited quantity. An example on the market was the game CryptoKitties, which made a limited number of virtual kittens available in the form of NFTs. Their value quickly rose, as they were rare.
Another example was a video by singer Grimes that was sold in the form of an NFT. The video is available to anyone who wants to watch it on the internet, but only the buyer has ownership of the original item. The same case happens when selling NFTs of works of art. Anyone has access to these works but only one holds ownership of the original work and can explore its use in the future. NFTs are tradable, that is, whoever owns an NFT can trade it in the future.
How does it work?
- Release: Mattel announces the release of a specific collection of Hot Wheels cars as NFTs.
- NFT platform: They can choose a specific NFT platform or even create their own platform to sell these digital collectibles. Currently negotiations are made through their own platform: https://hotwheelsnftg.io/
- Sales: Interested parties can purchase these NFTs during the designated sale period or until they are sold out. Each NFT represents a specific Hot Wheels car and can have unique characteristics such as color, design or rarity.
- Ownership and trading: Once purchased, NFTs are registered in the buyer’s digital wallet, which proves exclusive ownership of that item. Owners can decide to keep them as part of their collection or sell them to other collectors through the same platform.
- Authenticity and rarity: The authenticity and rarity of an NFT are verified through registration on the blockchain, ensuring that it is unique and legitimate.
- Value: Just like physical collectors’ items, the value of a Hot Wheels NFT can vary based on its rarity, demand, and condition.
I agree that it is still a difficult concept to understand. But there are a lot of people betting on this, including Mattel. Hot Wheels NFTs have been on sale since 2021 and have been released in several different series with various rarity levels, which have changed with each series.
When purchasing, the buyer acquires a pack of collectibles without knowing what is inside. It’s like buying a pack of stickers for an album. And some NFTs are redeemable meaning, if you manage to get one of these, you can “convert” the NFT into a physical car associated with that NFT through an exchange token. These real models are produced in a limited run and the models change with each series.
In the last series released before this article was published, Series 7, the rarity levels were (the percentage indicates the proportion of each level):
- Basic (rarity level: common) – 57%
- Epic (rarity level: uncommon) – 28.95%
- Flame (rarity level: rare) – 10.13%
- Premium (rarity level: super rare) – 3.34%
- NFTH (rarity level: ultra rare) – 0.49%
- Showroom (rarity level: exclusive) – 0.08%
It is important to consider that the NFT market can be volatile and speculative, and the values of items can vary significantly over time, both up and down. Just enter the platform to find countless NFTs being sold for pennies on the dollar. Additionally, NFT platforms and collections are always subject to change so it’s critical to stay up to date on the latest information if you’re interested in participating in this market.