The virtual racing car — the “1-1-1” — is the first model to be issued and is also one-of-a-kind, with the auction page promising to never release more. The company behind the game, Animoca Brands, ran an auction for the limited edition model in ether for four days, before selling the crypto collectible to user “09E282” after received 31 bids.
In late March, Animoca Brands partnered with Formula 1 to ship the game, in which players collect virtual F1 cars and race against each other. According to the game’s official website, there are competitive in-game advantages to owning particular car models:
“The game will center around the collection and trading of unique Cars, Drivers and Components – all of which will exist as non-fungible tokens (NFTs) based on the ERC-721 token standard. […] Tokens are produced in limited quantities as determined by their level of rarity, with the rarest tokens possessing the most impressive racing attributes.”
Crypto collectibles are a relatively recent innovation, in which companies use blockchain technology to track and authenticate virtual collectibles.
Similar to how bitcoin (BTC) operates, the total supply of Cryptokitties is fixed, meaning scarcity helps to drive and maintain their value; unlike bitcoin, however, the kitties are an example of NFTs, which are non-homogenous and indivisible assets.