A company as big as the car brand Porsche entering the world of technology blockchain is usually a cause of excitement among collectors of Non-Fungible Tokens (NFTs). However, the celebration quickly turned into a 1,800-token pile-up this week when the German firm’s high-cost NFT launch failed to sell, forcing the brand to announce plans to curtail and reduce supply.
The design of the new Porsche collection is based on the German automaker’s sporty 911 model, and is expected to drop at 7,500 NFTs. Ethereum which would celebrate the car and allow owners access to exclusive events and products. It would also ensure that experienced car addicts in secret money – “helping shape the future of Porsche in the virtual world,” according to an undisclosed company statement.
But the buzz around the project took a bad turn last week, when Porsche announced it would be sell NFTs for 0.911 ETH each, or about US$1,475 – or about R$7,400. That’s a high price for an NFT market that has lost a lot of momentum since the start of 2022 – and especially for a project with thousands of NFTs on offer.
– PORSCHΞ (@eth_porsche) January 23, 2023
the answers to crypto twitter it was fast and ironic. Famous Space Builders and Collectors he answered calling the movement “senseless”, “uninformed” and “just a source of income”, as the company’s tweet gathered more than a million impressions mainly through mocking shares.
Some have suggested that 0.0911 ETH (around $145) would make more sense. But Porsche has not directly acknowledged the turmoil publicly and its plans have not changed.
Shortly after the public mining started on Monday (23), the underlying sales decreased significantly – and, in what seems like the death of any newly issued project, NFTs were being sold rapidly below their launch price. area. As of this morning, only about 1,500 NFTs have been minted. Porsche then made its move.
“Our Guardians Have Spoken,” the project’s official account he tweeted today. “We will be scaling back our offering and leaving behind architecture to move forward and create a better experience for a unique community. More information in the coming hours.”
This is a pure example of a big brand trying to get liquidity from the community without getting involved in the Web3.
Porsche had a mint .911, in the carry-on market, for 7500 pieces. Of course it failed. Almost no marketing, trying to raise only prestige. https://t.co/0HFbpxgRDP
– gambling (@camolNFT) January 24, 2023
Over 1,850 NFTs already have them were created at the time of writing, it is on sale now will end at 6 p.m. ET (8 a.m. Brasilia Time) This Wednesday (25). The floor price – that is, the lowest listed price of an NFT on the market – changed, briefly rising above the 0.911 ETH mark on OpenSea, but again falling below that price. Right now he is can be sold for 0.905 ETH (about $1,465).
How Porsche will continue with the small community of NFT owners remains to be seen. The company did not respond to a request for comment from decodebefore and after the announcement.
Even the decision to announce plans to stop making signs – but not immediately – was criticized by some. One of the CEOs of Rug Radio, Farokh Sarmad, responded to the project’s message on Twitter, to write“Whoever manages @eth_porsche, you are not helping the @Porsche brand and you are exploiting.”
This mint was not closed and the tweet made people FOMO to create more NFTs for 0.911 ETH. You can check the chain, but the amount sold is very high in the last 2 hours since the tweet. Anyone who runs @eth_porscheyou are not helping @Porsche brand and you absorb. https://t.co/RRn4YO8B7e
– Farokh (@farokh) January 24, 2023
Porsche is the latest example of a brand venture in the Web3 world gone wrong. While some traditional companies have been praised for partnering with existing NFT projects – such as Budweiser and Adidas – or using the technology in ways that are not revenue drivers (such as Starbucks and Reddit), others have faced heavy criticism.
Pepsi’s “Mic Drop” collection is a notable example – even as a free mint, it has been criticized for poor messaging and unusual graphics. A recent release of Game of Thrones NFTs it was widely derided for poor artwork. And although it sold, the Tiffany & Co collection was not a success either. A drop of NFTs last year associated with CryptoPunks-themed pendants was also criticized for its high coin price.
NFT projects linked to celebrities have faced similar criticism in the past, regardless of whether they were sold well or not. Donald Trump’s recent collection, for example, was widely scorned — even by Trump supporters — but in the end sold and increased in value. The project inspired by former player Michael Jordan, launched by his son in 2022 in Solana, has reduced its distribution after slower than expected production.
In general, Web3 advocates seem more interested in brands trying to create in the space by offering NFTs or making them more accessible and affordable. Attempts by famous companies and celebrities to simply gain value through high prices and low value do not go down well.
The decline of Porsche, for many analysts, is yet another example of these cases – and the brand may have learned the first hard lesson on Web3, if it considers changing the path ahead.
*Translated by Gustavo Martins with permission from decode.
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