Mattel Hits the Brakes on Hot Wheels Virtual Garage NFTs

Mattel has hit pause on its flagship Hot Wheels Virtual Garage NFT program, announcing there will be no further releases of new NFT series or feature drops “for the foreseeable future,” as the toy giant reconsiders the long-term future of its digital collectibles.

“As we evaluate the changing world of virtual collectibles, we’ve determined the time has come to end our Series and Feature Drops in 2025 and onward,” Mattel said in an official update posted to its website.

The decision puts an end, at least temporarily, to the Hot Wheels Virtual Garage project that launched in November 2021—one of the earliest branded NFT projects to emerge from a major toy manufacturer.

Mattel partnered with the Worldwide Asset eXchange (WAX) for its initial mint, offering collectors digital collectibles and redeemable die-cast cars.

Ten series were released in total, and the final drop went live in December 2024.

Mattel assured fans that “all existing and outstanding redemptions… will be fulfilled as promised,” including models like the Lamborghini Huracán LP 610-4 and the classic TV series Batmobile.

The toy giant said that while users currently can’t transfer their NFTs to external wallets or marketplaces, “we are exploring future options… and will share updates with the community.”

No revival of the program is planned at this time, but Mattel maintains that a long-term strategy is in development.

NFT holders can continue to buy, sell, and trade on the Mattel Digital Collectibles Marketplace, and the “My Collection” portal and official Discord community will stay online through at least 2025.

Customer support will also continue to operate during this period, the website reads.

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.