Mattel has announced that it will be halting its Hot Wheels Virtual Garage NFT series, pausing any future releases and feature drops for the foreseeable future. In a statement on its website, the company mentioned that it is reevaluating the long-term direction of its digital collectibles and thanked fans for their ongoing support.

Despite the halt in new releases, the Hot Wheels NFT collection, the Mattel Digital Collectibles Marketplace, community Discord, and other related channels will continue to operate normally at least through 2025.

Source: Mattel Creations

NFT holders can still buy, sell, and trade their Hot Wheels NFTs on the marketplace, and existing redemptions will be fulfilled as promised. However, transfers of NFTs to other wallets or marketplaces are not currently possible, though Mattel is looking into this feature.

The company's Hot Wheels NFT Garage was originally introduced in November 2021, and the latest model, Series 10, was made available in December 2024. While Mattel is stepping back from NFTs for now, it stated that it is working on a long-term plan for virtual collectibles, with more updates expected for the community in the future.

In the broader context, Mattel is not alone in reevaluating its NFT strategy. Nike recently shut down its NFT marketplace, RTFKT, after facing a lawsuit from holders. In contrast, FIFA is expanding its NFT efforts, launching a new Ethereum-compatible blockchain for its digital collectibles. 

The overall NFT market has experienced a considerable downturn, with revenues falling 63% year on year in Q1 2025, to $1.5 billion from $4.1 billion in the same time in 2024.