A new cryptocurrency recently caught our attention. Named BitCar, it’s founders Gov van Ek, and John Bulich are offering fractional ownership in supercars. The idea is that cars like the Ferrari 599 GTO can be fractionally owned with the fractions traded over a blockchain market. The company is exhibiting at the Goodwood Festival of Speed 2019 and has recently started on the Ethereum public network.
The car is purchased by the company and used to secure the cryptocurrency. In essence, the cars are security for the currency. If things go wrong then the car can still be sold and the fractional ownership redeemed. It’s not clear who would pay the cost in such a situation though. Clearly, it the value in the market fell significantly the the CAR tokens would suffer a similar loss of value.
In a practical sense, owners will buy into CAR tokens which are purchased using a utility token, BITCAR. Once purchased, the CAR token holders can vote on day-to-day decisions taken in respect of their cars.
The company also appears to offer what it describes as a “live auction platform” which allows users to eventually trade their way through fractional ownership to the point where they can purchase 100% ownership of an exotic which could then be taken out of the platform.
To us, it sounds like a risky venture. At the end of its press release, BitCar warns “Disclaimer: Exotic car values can go up or down and past performance is no reflection of future prices. The BitCar platform will be closed in certain jurisdictions including the USA, Portugal, Singapore and Australia.” Would you consider investing in a car-related cryptocoin?