Porsche has just jumped headlong into the world of NFTs. Unfortunately, the car brand’s collection did not convince investors…
Porsche, one of the most famous automotive brands in the world, has just launched its collection of non-fungible tokens (NFTs). The collection includes 7,500 digital works different. Each token represents a car from the automotive giant. They are all identical.
To receive one of the illustrations developed by the brand, Internet users were invited to visit the Porsche site for the “mint”, i.e. by issuing an NFT on the Ethereum blockchain. The process is purely random, as is the case with other collections in the NFT market. To receive your token, you had to be whitelisted beforehand.
Subsequently the collection was opened to all investors. Each digital production was offered to the price of 0.911 ether, or around 1,300 euros, in tribute to the brand’s legendary Porsche 911. After the creation of the tokens, some of them were put up for sale on OpenSea, the essential marketplace for the NFT ecosystem.
The sinking of Porsche NFTs
Unfortunately, the Porsche collection was not as successful as hoped. Since launch, the brand has only soldjust over 1800 NFTs, of the 7,500 available, over two days. Only 25% of the total supply has found buyers. To boost sales, Porsche’s social networks have published a series of messages relating to the collection. In vain.
Porsche was quick to realize its failure. The car company finally suspended the initiative faced with a frosty reception from consumers. In a message posted on Twitter, Porsche says it has listened to the opinion of NFT holders:
” We will reduce our supply and stop the mint to move forward with creating the best possible experience for an exclusive community “.
In addition to the announcement, the price of NFTs on OpenSea has contracted. There are now many Porsche tokens around 0.5 ether, or around 700 euros, far from the initial price offered by the brand. Faced with the lower price, interested potential buyers should turn to OpenSea rather than creating a token through Porsche. Soon after, the ability to create a collection token was suspended.
It should be noted that Porsche is not the only automaker to have entered the world of digital works on blockchain. This is the case with hyundai, which last year launched 30 exclusive NFTs, from Chevrolet, Renault or Lamborghini. Car brands are part of it a trend started by the big names in luxurysuch as Ralph Lauren, Fendi, Dolce & Gabbana, Louis Vuitton and Balenciaga.
Read also: Apple also wants to earn with NFTs, but hasn’t understood anything about crypto
The NFT market continues to plummet
Porsche’s bitter bankruptcy comes as the non-fungible token market continues to shrink. Heavily affected by the cryptocurrency crash, the sector is currently bloodless. According to data from DappRadar, the market fell to just $1.2 billion in sales, down from $12.4 billion in the first quarter of 2022.
This too is one of the elements that explain investors’ profound disinterest in the Porsche initiative. While the traditional market and the cryptocurrency market have contracted significantly, investors lack liquidity invest. In this context, it can be estimated that the sale price of NFTs was too high to attract speculators or fans of the brand.
Finally, Porsche too has sinned by clumsy communication. On its website, the automaker did not mention the possible benefits of NFTs. In general, holding a non-fungible token launched by a luxury brand provides access to exclusive content. Unnecessarily silent, Porsche contented itself with promising exclusive benefits to its fans.
You have heard us a lot about the exciting journey ahead. Let’s make it more concrete and shed some light on what we have planned for you in the next couple of months.
A thread of utility 🧵
— PORSCHΞ (@eth_porsche) January 25, 2023
The brand finally detailed the list of benefits offered to owners of a Porsche NFT, after the announcement of the death of the project. The company refers behind-the-scenes access to the world of Porschewith exchanges with “ designers, engineers, pilots, artists, ambassadors or partners of Web3”.
Also, buyers will be welcome to give their opinion about how Porsche should continue to thrive in the world of NFTs and the decentralized internet. Polls will be posted on Discord. They will also be entitled to physical objects”, always exclusively guaranteed. The brand ensures that the NFTs created can be gradually customized to become unique. Most importantly, each NFT grants you free access to ” exclusive events »where it will be possible to use the cars of the brand and of ” meet other Porsche pioneers and insiders ». This communication unfortunately comes a little late.