Crypto

Crypto winter notwithstanding, when will Lambo arrive?

Many cryptocurrency buyers have been consumed by one nagging question as they watch the price of coins rise and fall over the past few years: when will Lambo come out?

Lambo is short for Lamborghini, a luxury car that is the ultimate symbol of success when it comes to getting rich with digital currencies and the focus of thousands of “wen Lambo?” memes. Like expensive watches and other traditional displays of wealth, supercars have been a staple of Bitcoin conferences and crypto influencers on Instagram for years.

The recent collapse in cryptocurrency prices has flooded the used markets with other luxury goods, including Patek Philippe and Rolex watches. Lamborghini, on the other hand, is doing great. The high demand for supercars suggests that most owners belong to a rare class of trophy seekers who are so wealthy that they pay little or no attention to changes in the market.

Peter Saddington is one of them. He rose to fame in the crypto-car community after buying a Lamborghini in 2017 for 45 bitcoins, which at the time was over $200,000. He bought bitcoin for just $115 in 2011 when the cryptocurrency was worth less than $3. The move helped popularize the purchase of luxury cars in cryptocurrency. Today, even after the crash, the 45 bitcoins he spent would be worth $1 million.

Peter Saddington said that many of his friends in the industry are still looking for luxury cars. Large price fluctuations are normal for digital currencies and should not get in the way of buying luxury cars, said Peter Saddington, who is currently investing in crypto projects.

During a video chat, Peter Saddington showed off a black Mercedes he bought in April with money he earned from bitcoin mining. He said he wasn’t going to sell his original Lamborghini Bitcoin: “It’s in a different garage.”

AutoCoinCars, an online platform founded in 2018 that allows shoppers to buy luxury cars with digital money, doubled sales on its platform to $12 million last year, and that figure continues to rise, COO Luke Willmott said.

The company often sees an increase in luxury car sales during market turmoil, Willmott said. Part of the reason, he says, is that Lamborghini tend to be less volatile than digital currencies. “People are spending money because they want to get out of their cryptocurrency and invest in physical assets,” he said. “Then it will allow them to have this asset that doesn’t depreciate like their crypto asset.”

Indeed, due to the violent reversal in the markets of late, Lamborghini have retained their value better than cryptocurrencies. Bitcoin and Ethereum prices have fallen over 50% since November, and platforms and lenders such as Celsius Network and Voyager Digital have recently gone bankrupt. Meanwhile, according to CarGurus.com, the price of a used Lambo has remained virtually unchanged over the past year.

Lamborghini sales were higher than ever last year and they are on track to surpass that record this year, according to financial information released last week by parent company Volkswagen. One of the reasons sales are holding up so well is because inventory is low and waiting lists are long. The spokesman said the waiting list for Lamborghini is over a year and a half.

The lure of cryptocurrency speculators is similar to what makes any rich person spend so much on a car. “If you want a really fast car, you can get something else for a lot less. If you buy a yacht, you can take your family on vacation,” said SHL0MS, a pseudonymous non-fungible token artist. Lamborghini “exists only to flaunt its wealth,” said SHL0MS, who blew up a Lamborghini Huracan on camera in February to mock the excesses of the cryptocurrency industry. (The resulting NFTs were sold for $2.2 million).

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