The collectible car market is booming. Everyone knows that. Industry experts are forecasting it to expand to more than $54 billion by 2032. What happens when you introduce NFTs to the equation? What you end up with is something much more short-lived and possibly hazardous than anybody is ready for. The recently published “Global Collectible Cars Market Study” points to NFT car ownership certificates as an emerging trend to watch. But are we really ready for this?

Democratization or New Scam Avenue?

The promise of NFTs is simple: democratize ownership, verify authenticity, and unlock liquidity. All at once, fractional ownership of a ’67 Shelby Mustang is possible. Sounds amazing, right? A digital deed that can't be forged. But here's the shocker: it's a house of cards built on shaky foundations.

Think about it. Who checks to ensure that the NFT truly depicts the car it pretends to? A slick website? A charismatic auctioneer with RM Sotheby’s or Mecum Auctions. The reality is that the digital certificate doesn’t matter at all if there’s no physical verification to substantiate it. That's where the problems start.

Imagine a scenario: A less-than-honest seller creates an NFT for a "rare" vintage car. The NFT appears to be the real deal, including gorgeous photos and even a VIN. But the car itself? A well-executed replica, or even worse, a rusting hulk. Who's going to find out until after the buyer has taken possession? By then, the seller is long gone, pockets lined with crypto profits. In the meantime, the purchaser is left with a worthless digital token—and a massive liability hangover.

This isn't just speculation. All of this is the downside of the entirely unregulated NFT Wild West, supercharged in an unregulated, high-value market such as collectible cars. We’re not talking about nickels here—there’s millions of dollars and potentially billions of dollars at stake. When combined with the deregulation, that’s a recipe for a ticking time bomb.

Minting Dreams, Burning the Planet?

We are, after all, building in some of the most protected natural areas on earth. Every NFT minted continues to contribute to the carbon footprint. Although some blockchains have stepped away from creating the new blocks to adopt more sustainable models, the overwhelming majority continue to use these energy-intensive proof-of-work models. Are we seriously going to defend expending massive amounts of energy to “own” a digital version of a real-world item?

Consider this: you're buying a vintage car—a symbol of a bygone era. By maintaining a digital certificate of title for that car, you’re contributing to a worsening problem. This problem now imperils the future of that entire boom. The irony is almost unbearable.

And here's another uncomfortable truth: the perceived value of these NFTs is often driven by hype and speculation, not genuine appreciation for the car itself. It’s a crypto feeding frenzy whipped by FOMO (Fear Of Missing Out) and the lures of gold rush riches. It's not about the love of the automobile; it's about the love of profit. That's the real engine driving this "explosion."

Wash Trading & Market Manipulation Ahead?

The other critical issue is market manipulation. Wash trading is epidemic in the NFT space. In the first of these two practices, the same trader both buys and sells an asset to artificially inflate volume and drive up the price. Now picture this happening in the public good NFT space. A second scenario has a group of insiders colluding to artificially inflate the price of a particular NFT car. They play hot potato with it to one another, and then they invent the appearance of enormous demand because of that. Unwitting purchasers look at the increasing price and excitedly pile in. Instead, they are left holding the bag when the insiders go public and cash out.

It’s a pump-and-dump scheme, plain and simple. Yet, because the NFT market is almost completely unregulated, it’s next to impossible to identify and prosecute this type of activity.

According to HTF MI report, Europe is currently dominating the whole region. North America is expected to be the fastest growing region. That means the opportunity for fraud is international. The platforms facilitating these NFT sales, whether they're established auction houses like Bonhams or newer players like Collecting Cars, need to step up and implement robust verification and anti-manipulation measures. Will they? Or are they going to choose to put profits ahead of their customers’ safety?

The world of collectible car NFTs is about to skyrocket. But before you jump in, ask yourself: Are you investing in a piece of automotive history, or are you fueling a bubble that's about to burst? The answer, I would argue, as it turns out, is much more shocking than anyone can possibly imagine. Be careful out there. It would be the most dangerous trip you’ll ever take, and you’d probably hate where it leads to.