Animoca Brands sees strong demand in world-first auction for F1 Delta Time, enters the record books with a sale of 415.9 ETH
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Special Report: Animoca Brands is building a racing game that gives users the opportunity to own digital assets in the form of non-fungible tokens (NFTs). The bidding action ran hot in an online auction for the 1-1-1, a high-performance F1 virtual car that sold for a stunning 415.9 ETH.
The ongoing development of F1 Delta Time stems from a landmark deal Animoca signed in March with Formula 1, the largest motorsport competition in the world with annual revenues of US$2.6 billion (AU$3.7 billion).
Today, that partnership has already borne fruit, as the game company’s very first virtual car fetched 415.9 ETH at auction – equal to US$106,428 (AU$153,803) according to the auction’s platform provider Open Sea – making it one of the most expensive virtual assets ever sold.
Animoca Brands (ASX:AB1) has split the game’s rollout into two stages, and phase one – the collectibles stage — is now underway. Players will buy and sell NFTs such as the 1-1-1, which are not only game items but also digital collectibles.
In Phase 2, gamers will pit their cars and driving skills against each other in the F1 Delta Time online racing game component – currently still in development.
While users can trade different tokens within the game to make their cars more competitive, not all digital assets are created equal.
To launch the trading aspect of the game, Animoca Brands put on auction the 1-1-1 – a striking, stunningly unusual F1 car comprised of black composite, whorls of rose gold, and swathes of glittering diamonds. Not exactly your average F1 car.
The lucky owner of the 1-1-1 not only owns a unique item, but will be able to reap gameplay benefits, since the 1-1-1 boasts vastly superior performance metrics.
“The 1-1-1 is a digital asset with multiple value points,” Animoca Brands chairman Yat Siu told Stockhead.
“It has value as the first ever Formula 1 digital collectible and NFT. It has value as a very powerful car in the game itself. And it obviously has value as an investment, given its high auction price.”
Based on the price action, the 1-1-1 appears to offer a compelling value proposition. The winning bid was 415.9 ETH.
Trading in the right digital assets can potentially be very lucrative, as evidenced by the CryptoKitties online game where the most valuable NFT sold for 600 ETH – the equivalent of around US$170,000 (AU$245,000).
Partnering with Formula 1 gives Animoca Brands the ideal platform to advance its market-leading position in the multi-billion dollar market for in-game purchases, via the use of non-fungible tokens and blockchain technology.
“We partnered with Formula 1 to help drive fan engagement through blockchain. We are creating a game that has a collectible component based on NFTs, plus a racing component utilising those NFTs,” Siu added.
“We believe that partnering with Formula 1 will broaden our consumer reach, appealing to fans of the sport who may not yet have experience with our products. It’s a win for both companies.”
Importantly, it means that owners of the 1-1-1 and other assets within F1 Delta Time will always maintain a direct ownership and control of their NFTs, regardless of any future decisions taken by Formula 1 or Animoca Brands.
“Players are free to do anything they want with their NFTs: they can sell them on a marketplace for real money, collect them, or use them in F1 Delta Time when the racing component launches,” the company explained.