A large classic car auction held by Lloyds concluded last night with the sale of both a physical GTHO Falcon and a non-fungible token (NFT) of the same car.
The actual car sold for $1.3 million, plus buyer’s premium, while the digital version netted $51K, plus PB.
An NFT is a blockchain-created certificate of authenticity for a digital asset or artwork. NFTs differ from cryptocurrency in that the latter are fungible — meaning they can be exchanged for crypto or cash.
NFTs can be sold, however. The current record for an NFT sale is an artwork titled Everydays — The First 5000 Days by American artist Beeple. This sold for US$69 million at Christie’s in March.
Confused? So are we! Here’s how the Lloyds listing explains the deal:
“This is your opportunity to be part of this world first digital verified blockchain NFT (non-fungible Token) Ford Falcon GTHO Phase III first edition release which is an artistic representation of the exact car with the same options it was sold with off the showroom floor in the early 1970s.”
Where it gets interesting is the promise the initial purchaser of the NFT will receive 10 per cent of every future sale of the item if sold through Lloyds. The purchaser will also be entitled to two years of free buyer’s premium on items purchased by the seller.
On top of that, the current owner of the physical Yellow Glo GTHO will also receive 10 per cent of the future sale prices, if registered with Lloyds beforehand.
The Yellow Glo GTHO is the first of 52 Phase III NFTs that Lloyds plans to offer this year. The remainder are listed here.
While Lloyds claim that this sale was the first of its kind, Barrett-Jackson sold four NFTs based on actual cars at their Las Vegas auction in June.
Eagle-eyed Street Machine readers have also noticed that the NFT GTHO has a ‘GT-350’ decal on the side, instead of the actual car’s ‘GT-351.’ Why is it so? We’ll endevour to find out.