Mattel has announced a suspension of all new releases in the Hot Wheels Virtual Garage NFT series. In an official statement on its website, the company said it does not plan to launch new series or conduct drops in the foreseeable future and has begun rethinking its virtual asset strategy.
The Hot Wheels Virtual Garage series was launched in November 2021 in partnership with the Worldwide Asset eXchange platform. The tenth and final series was released in December 2024. This effectively marks the end of the project in its current form.
Reasons Behind the Project Freeze
Mattel attributes the decision to changes in the digital collectibles market. The company plans to reassess its participation in the sector and develop a long-term strategy.
"The world of virtual collectibles is evolving. It’s time to pause regular drops and reflect on the future of the format," the official statement reads.
Despite halting new launches, existing NFT assets and their associated features will remain operational at least through the end of 2025. Holders will still be able to buy, sell, and trade tokens on the internal Mattel Digital Collectibles Marketplace. All previously announced redemption options for physical models will be honored in full.
At the same time, transferring NFTs outside the platform is currently not possible. The company is exploring options to add this functionality in the future, but no timeline has been provided.
The “Trend” of Shutting Down NFT Divisions
Mattel's exit from the NFT space is not an isolated case. In December 2024, Nike announced the closure of its RTFKT NFT platform. The company was subsequently hit with a $5 million lawsuit from token holders who claimed financial losses due to the shutdown.
Meanwhile, some players are expanding their activity. On April 30, FIFA announced the launch of a new Ethereum-compatible blockchain network to migrate its digital card collection from Algorand.
According to Cryptoslam, total NFT market sales in Q1 2025 fell by 63% compared to the same period in 2024 — from $4.100 billion to $1.500 billion. This decline has affected both major brands and niche projects, leading analysts to question the sustainability of the current virtual collectibles model.
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