The organizers of the 2023 Zandvoort Grand Prix in the Netherlands are offering non-fungible tokens (NFTs), or ‘digital collectibles’, to all attendees of the Formula 1 racing event from August 25 to 27.
However, because the wider NFT market is struggling and its perception is low, the organizers have conspicuously chosen to avoid using the actual term ‘NFT’.
The organizers are scrapping the term ‘NFT’
Each collectible contains unique coordinates representing part of the Zandvoort circuit, along with a visual design showing the circuit.
In addition, 75 attendees will receive a special 1/1 edition collectible commemorating the 75th anniversary of the Zandvoort circuit. The Dutch GP works together with the GET protocol on the NFTs.
The Dutch Grand Prix was first held in 1950. Source: Formula 1.
The organizers opt for a new nomenclature
All ticket holders can access a collectible by logging into the Dutch Grand Prix app, with the process automated behind the scenes via blockchain technology. Ticket holders do not need any prior knowledge of blockchain or need to set up a separate wallet.
According to the organisers, the collectibles will be updated throughout the race weekend to highlight different aspects of the track and show.
It’s also worth noting that the Zandvoort Grand Prix has avoided using the technical term NFT and opted instead for ‘digital collectible’. A choice that Reddit and other big names have also made.
This is an increasingly common shift in the industry. Especially since marketers have realized how bad the perception of NFTs is among the general public.
A survey by Variety magazine last year found that perceptions of NFTs were lowest among those who didn’t own them, which includes most people. The survey also found that perceptions had plummeted since the “crypto winter” set in.
The growing interchangeability between digital collectibles and NFTs is a problem for many in the industry, who say it is limiting and they are two different concepts. Digital collectibles are just one use case of NFTs, while the technology itself is much broader.
Still wondering what an NFT is? Look no further: NFTs explained: what are non-fungible tokens and how do they work?
Most major NFT collections are seeing their rock bottom prices fall
While the NFT market in general is struggling, brands are still leveraging the technology to improve the fan experience. But that hasn’t stopped NFT rock bottom prices from crashing now that the crypto winter isn’t thawing, at least for NFTs.
According to nftfloorprice.com, all but two of the top ten NFT collections by market cap have fallen in 90 days.
Bored Ape Yacht Club, the most famous NFT collection, is down about 49%. Pudgy Penguins is down 20% in the same 90 day period and DeGods is down about 59%.
With the speculative value of many NFTs diminishing, the industry is turning to more innovative use cases. Earlier this year, Argentine airline Flybondi began issuing every ticket as NFT. In these cases, issuing non-fungible tokens is less about speculative trading and more about making tickets more flexible and resaleable.
BeInCrypto has reached out to GET Protocol and the Zandvoort Grand Prix for comment, but has not received a response as of this writing.