Ferrari is building a team, but not to drive in Formula E. He wants to explore what it can mean in the metaverse and immerses himself in NFTs. That may be great for fans of the racing brand, but at the same time it confirms that Ferrari is not exactly a forerunner in the field of sustainability.
Bloomberg writes that Ferrari has told investors that it has all sorts of plans in the virtual world, including creating NFTs. Getting into this is a big trend right now: Samsung will make TVs that let you trade and display NFTs, Adidas has joined forces with a major NFT initiative, and YouTube is already working on it.
What exactly Ferrari wants to do with it is still unknown. Probably making a lot of money since NFTs are ways to sell digital art. We can imagine that Ferrari wants to make virtual cars, because Ferraris already exist in various games.
For example, we should be able to have fun in a fun way within the metaverse and a virtual ride (or competition) in the car can certainly contribute to this. Above all, owning a digital Ferrari could be another way to show how well you’re doing. If we learn that $500 million in ‘real estate’ was sold in 2021 in the four most well-known metaverse locations, it’s understandable that more and more companies want to do something with it.
The metaverse is likely to be a big, important new way of using the internet, so it makes sense for companies to take an interest in it. Among other things, metaverses are created that work on the blockchain. However, that blockchain is certainly not sustainable. As a result, NFTs contribute to the CO2 footprint that we as humanity leave on the world. The cryptocurrencies you buy NFTs with are stored on the blockchain. For each transaction, all the computers on the network must receive new information, in addition to hard calculations to make everything possible and keep it safe.
So it’s very two-fold: when many artists work with fairly organic materials, they are likely to have issues with their followers when they take a photo of their artwork and create an NFT of it. There are also artists who believe they can make NFTs carbon neutral by investing in renewable energy. So they have to contribute quite a bit for NFT. For example, Space Cat, a famous NFT, would have a CO2 footprint as large as the average Dutchman’s two-month electricity consumption.
Back to Ferrari. As much as the rules change and that brand will eventually have to make electric cars, it is also known as the brand that is one of the last automakers to come up with electric cars. For example, the first fully electric Ferrari would not be announced until 2025. The brand was not the first with hybrids either: it was only last year that the first hybrid was announced: the 296 GTB.
It also frustrates the Formula E organization for a long time that the ‘red’ brand has yet to field a team for the sport. A pity, because in Formula 1 it is still a brand with a lot of prestige. In addition, there are also Formula 1 teams in Formula E, including Mercedes. Car brands like Porsche and Nissan are also participating in this electric racing race. Theoretically, it wouldn’t be so crazy if F1 icon Ferrari got involved. However, he has been choosing not to do so for years.
Now he is setting up a team and that is not for the long-awaited Formula-E. That team likely won’t work as hard to make NFTs climate-neutral, but will primarily want to sell more within the metaverse. Whether it’s virtual cars, cartoon cars, or something else entirely: in any case, it’s something that doesn’t improve the earth as a planet in the first place.
At the same time, we are used to that from cars: road traffic is responsible for no less than 17 percent of CO2 emissions. Something that is not solved with electric driving, but it does decrease significantly: an electric car would emit 40 percent less during its entire life than the ‘normal’ variant with exhaust. Would that also apply to the electric Ferrari that will arrive in 2025?
Ultimately, it remains to be seen what exactly Ferrari plans to do with the metaverse and any NFTs. At the moment, he’s mostly looking at what he wants to do with this.
When you’re not tapping, you’re floating somewhere in the wonderful world of entertainment or on a plane to some great place in the real world. Mario…