Audi Launches NFTs on xNFT Blockchain, Token Price Plummets 32% Following News

Major automaker Audi AG (OTC: AUDVF) announced that it will launch its own nonfungible tokens (NFTs) through a partnership with xNFT Protocol XNFT/USD.

What Happened: According to a Sunday post by the official Audi account on the Chinese-language social media platform Weibo, Audi is set to launch its NFTs on Tuesday.

Audi's announcement was accompanied by a 15-second teaser video with inspirational-type text in Chinese. The official Twitter profile of xNFT protocol also shared that "Audi will mint its limited NFTs on" its platform.

Audi will mint it's limited NFTs on xNFT Protocol. 🚀🚀🚀 pic.twitter.com/xa2ALi8Iq4

— xNFT (@xNFT_Protocol) August 8, 2021

xNFT Protocol is an NFT aggregator that has strategic partnerships with Dark Horse, Digicenter, Larva, and the EU-China Science and Technology Committee.

The project also raised funding from Huobi Labs, Fundamental Ventures, and Continue Capital, as well as other investors.

What It Means: NFTs are tokens hosted on blockchains that are best suited to be digital representations of unique items of physical assets thanks to their non-fungibility — meaning that each token is unique and identifiable separately from any other.

This property sets NFTs apart from cryptocurrencies such as Bitcoin BTC/USD and Ether ETH/USD, which aim to be fungible in order to maintain each token's value exactly the same.

While NFTs enjoyed a great deal of attention and saw their prices skyrocket over the last year, not everybody is convinced that they are a great investment.

In fact, Fred Ehrsam — the co-founder of United States cryptocurrency exchange Coinbase Coinbase Global Inc COIN — believes that 99% of all NFTs will be essentially worthless in five years.

Price Action: xNFT Protocol XNFT/USD token lost over 30% in price following the news and is currently trading at $0.4398.