Mattel Cuts the Cord on Hot Wheels NFTs – Virtual Garage Skids to a Halt
Another corporate NFT experiment bites the dust—turns out even nostalgic toy brands can’t defy crypto gravity. The ’web3 playbook’ gets another footnote: ’Chapter 11: When Marketing Stunts Meet Bear Market Reality.’
Wall Street analysts shrug—’At least they didn’t pivot to AI this time.’
Brands rethink NFT efforts
The toy manufacturer’s decision lands as legacy brands across industries reckon with the collapse of early NFT hype and the legal fallout that has followed.
Just two weeks ago, Nike was hit with a $5 million proposed class action lawsuit over its abrupt shutdown of RTFKT, the digital fashion startup it acquired in 2021.
Plaintiffs alleged that Nike hyped RTFKT’s Ethereum-based NFTs, such as CloneX and Dunk Ghost Edition, only to quietly pull support in a “soft rug pull,” leaving investors with illiquid assets.
The complaint claims Nike reportedly promoted unregistered securities and violated consumer protection laws.
Mattel’s Web3 foray
Mattel expanded its Web3 footprint well beyond Hot Wheels in recent years.
In 2023, it partnered with women-led crypto brand Boss Beauties to launch Barbie NFTs celebrating the doll’s 250 career personas, from astronauts to CEOs, designed to “empower women and collectors to explore Web3.”
The company also partnered with luxury fashion house Balmain in 2022 to launch a Barbie and Ken NFT collection, described as a “unique digital and physical art collection.”
Around that time, Mattel launched its own NFT marketplace on the Flow blockchain, enabling peer-to-peer trading in crypto and hinting at plans to tokenize more of its iconic brands.
