Mercedes hitall the right notes jumping into the crypto pool.At Bentley and Lotus, the waters are largely untested. And what’s up with Porsche?

In January, Lamborghini announcedSpace Time Memory, its first NFT project. The series of five photographs of a Lamborghini Ultimae launchingcelebrated “human space exploration,” the company said.

Source: Lamborghini

In June, Chevrolet was hoping to cash in on the cryptocurrency bonanza that saw a non-fungible token made with Steve Aoki and packagedwith the lastLamborghini Aventador LP 780-4 Ultimae Coupé ever made sell for $1.6 million. So it offered a car-themed NFT of its own.

Chevy paireda digital image of aCorvette Z06 in aBlade Runner-style cityscape, with a real-life 2023 ’Vettecustom-painted to match the artwork. The Detroit automaker’s acid-green duofailedto receive a single bid—even after the sale was extended by a day. Trevor Thompkins, a spokesperson for Corvette, characterizesthe endeavor as “very educational.”

Chevy will eventually wade back into digital assets, Thompkins says. For now, the fiasco remains a stark example of theNFT market’s epic volatility. On July 14, the average sale price for an Ethereum NFT had dropped to $391, an 84% decrease from May’s $2,436average, according to data fromCryptoslam.Sales volumes on the world’s biggest NFT marketplace, OpenSea, are down 75%since May, according to Dune.

Still, pumped brakes don’t mean the ride is over.Googleany automaker’s name with the term “NFT,” and you’ll find yourself swimming in art. Porsche, Bentley, Rolls-Royce, BMW, Hyundai, Lotus, and Nissan, among others, haveannounced projects.

Source: Mercedes-Benz

Thedrop in prices may castdoubts about the long-term usefulness of NFTs at companies built on real-world tangible assets, but the urge to mint money, crypto or not, isn’t going away.Chevy’s neon-bright cautionary tale shows that automakers will havehave to do much more than produce a few quick pictures by a fresh artist and expect awindfall.“It just requires thinking about what are the right ways that you can engage with your user base,”says Jonathan Victor, the business lead forNFT.Storageandhead of NFTs atProtocol Labs, which builds Internet tools.

“We are undeniably in a crypto winter,” says Alex Micol, who founded the online-ad developer Scalers Agency and the NFT-based communityDivergents Keyin 2021.“It’s on any creator to think, what’s next?”

Smart brands will use NFTs to builda community of fans and collectors, experts say.Acquiring a specific NFTneeds to feel meaningful.

Hyundai says itsPlasma NFT will undergo a fresh transformation upon the launch of IONIQ 6 later this month.

Source: Hyundai

“Car companies should focus on the value the user gets with their NFTs, not just a collectible,” Micol says. “Don’t just give away a car to the highest bidder. Provide real value, like an invitation to an exclusiveeventor Formula One tickets. It should provide access to a community.”

Small memorabiliaNFTs such asthe kind givenat sporting events do this well. They are called Proof of Attendance Protocols, or POAPs, and somebody could use them to brag they’ve been toevery Dallas Mavericks game, for instance. Limited-edition runs and authenticators for commodities (including cars)also apply. Fashion houses are already usingNFTs likewatermarks to secure such luxury items asbags and watches. And access to special events, VIP privileges,and other exclusive content accessed via NFT ownershipgeneratea sense of camaraderie.

The Mercedes-AMG and PetronasRace Collection is a limited drop of NFT Ticket Stubs. This track in Spielberg, Austria, had a commemorative run of 2,500.

Source: Mercedes-Benz

“It’s really figuring outhow do I—as a brand who knows what my consumers like—create the experience that will let them showcase that this is a part of their identity?” Victor says.

Mercedes-AMG’sRace Collectionof NFT Ticket Stubs for Formula One fans does this. The brandcreated2,500 numbered Ticket Stubs each for most races,with five races having 1,000 rare editionsin collaborationwith different artists, for 14,888 NFTs total.Fans registered for free on the FTX platform to get a stub, which unlocked gated access to releasesand physical prizes.The idea was to gather the entire Mercedes F1 collection.The floor price was 0.04 SOL (about a penny) with sales averaging $8,124 on Thursday.

In August 2021, Porsche auctioned as a NFT an exclusive design sketch by Porsche’s director ofexterior design,Peter Varga.The sketch sold for a value of 30.25 Ether.

Source: Porsche

Larger ambitions may need to be scaled back.

Porschesuccessfully sold itsfirst widescale NFTinAugust 2021 for about $90,000. (The Ether tokens are now worth $60,000.)Then the automaker announced an entire NFT program at its annual press conference in March. “We intend to sell original Porsche NFTs on our platform,” saidLutz Meschke, deputy chairman of the executive board of Porsche AG at that time. “You can look forward to highly emotive, Porsche-quality products.”

ThePorsche NFT sitehas been headlined “Launching Soon” ever since. “There are currently no live NFT auctions or additional activities planned at Porsche,” said a spokesperson via email on July 12, addingwhen pressed further that, “as Meschke said, something is currently being created.”

Bentley’s first NFT will sellon the Polygon network inSeptember.

Source: Bentley

Bentley, meanwhile, is approaching its 208-pieceGenesis NFT dropthis September with an open mind.It will be the first foray for the brand, which plans eventually to include such other crypto applications asgaming, blockchain operations, and NFTs tied directly tothe VINs of each vehicle, saysJeff Kuhlman, a Bentleyspokesperson.

“We have very modest expectations for the Genesis NFTin terms of revenue,” he says.“There’s an opportunity to story tell and hopefully, connect with a new audience and have that conversation about who we are and who we want to be. We are still learning what is possible.”