Azuki’s NFT Skateboards Set Off $2.5M Bidding War

The “Proof of Skate” auction brought in a staggering $2.5 million for these 8 NFT-backed physical skateboards. 

“Scan-To-Own” Technology

On Friday, Azuki brand creators Chiru labs held the “Proof of Skate” auction for eight physical skateboards for the first time for the NFT market.  These skateboards have all been authenticated by an embedded chip, and resulted in a flurry of 145 total bids, bringing in ETH worth a total of $2.5 million. Although it is rare to see a physical object being auctioned as an NFT, the chip embedded in each skateboard can be scanned and verified online, creating a “scan-to-own” experience for the owners. The highest bid on a skateboard from this collection went as much as $400,000 and was bid by an NFT collector going by the pseudonym of “dingaling.” This individual is already an avid NFT collector in the market and has a pretty sizeable collection that features 70 Azuki avatars. On the other hand, the lowest successful bid was $260,000. The owners could sell their boards down the line by scanning the embedded chip and transferring the ownership to another wallet. 

PBT Embedded Skateboards

With these boards, Chiru Labs is introducing the concept of the Physical Backed Token (PBT) that links a physical item to a digital token on the Ethereum blockchain. However, the makers of the skateboards have advised owners not to ride them as they are each plated in 24-karat gold and weigh around 45 pounds. The goal is to create a system of authentication of physical goods by leveraging blockchain technology and for transparent record-keeping of the ownership chain of an item. This could be especially useful in the world of art buying, especially to establish provenance for a piece of art. 

Other Examples Of Physical NFTs

Chiru Labs has previously also dabbled in physical NFTs. For example, in early 2022, Azuki owners were airdropped tokens that they could redeem for physical jackets that featured a fusion design inspired by American and Japanese street styles. 

And although physical NFTs such as the “Proof of Skate” collection are rare, tokens have been tied to the sale of many physical items, especially by major retail brands. For example, luxury goods brand Tiffany & Co. dropped an NFT collection earlier this year that featured gem-encrusted pendants inspired by the CryptoPunks. In 2021, Adelaide artist Dave Court’s “House Party” exhibition became the first physical NFT exhibition in South Australia and one of the first of its kind in the Southern Hemisphere.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.