Porsche has just launched headfirst into the world of NFTs. Unfortunately, the car brand’s collection did not convince investors…
Porsche, one of the most popular automotive brands in the world, has just launched its own 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”, that is to say 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 have joined a whitelist beforehand.
Subsequently, the collection was opened to all investors. Each digital production was offered to the price of 0.911 ether, or approximately 1,300 euros, in homage to the legendary Porsche 911 of the brand. After the tokens were created, some of them were put up for sale on OpenSea, the essential marketplace for the NFT ecosystem.
The sinking of the Porsche NFTs
Unfortunately, the Porsche collection did not meet with the expected success. Since launch, the brand has only soldjust over 1800 NFTs, of the 7,500 available, in the space of two days. Only 25% of the total supply found takers. To boost sales, Porsche’s social networks posted a host of messages relaying to the collection. In vain.
Porsche was quick to realize its failure. The automobile firm finally suspended the initiative in the face of a frosty reception from consumers. In a message posted on Twitter, Porsche states that it has heard 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, potential interested buyers should look to OpenSea rather than creating a token through Porsche. Soon after, the ability to create a collection token was suspended.
Note that Porsche is not the only car manufacturer to have entered the world of digital works on the blockchain. This is the case of hyundai, which launched 30 exclusive NFTs last year, from Chevrolet, Renault or Lamborghini. Automotive brands are part of a trend initiated by the big names in luxurysuch as Ralph Lauren, Fendi, Dolce & Gabbana, Louis Vuitton and Balenciaga.
Read also: Apple also wants to make money with NFTs, but hasn’t understood anything about crypto
The NFT market continues to plunge
Porsche’s bitter failure comes as the market for non-fungible tokens continues to shrink. Heavily affected by the cryptocurrency crash, the sector is currently bloodless. According to data from DappRadar, the market is down to just $1.2 billion in sales, down from $12.4 billion in the first quarter of 2022.
This is also one of the elements that explain the deep disinterest of investors for the initiative of Porsche. While the traditional market and the cryptocurrency market have contracted considerably, investors lack cash to invest. In this context, it can be estimated that the selling price of NFTs was far too high to attract speculators or fans of the brand.
Finally, Porsche also sinned with clumsy communication. On its website, the automotive firm did not mention the possible advantages offered by NFTs. In general, holding a non-fungible token launched by a luxury brand provides access to exclusive content. Unnecessarily silent, Porsche was content to promise exclusive benefits to its fans.
You’ve heard us speak a lot about the exciting journey ahead of us. Let’s make it more concrete and shed some light on what we have planned for you over the next couple of months.
A utility thread 🧵
— PORSCHΞ (@eth_porsche) January 25, 2023
The brand finally detailed the list of advantages offered to holders 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, racing drivers, artist ambassadors or Web3 partners”.
In addition, buyers will be invited to give their opinion on 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”, again guaranteed exclusive. The brand ensures that the NFTs created can gradually be personalized to become unique. Above all, each NFT guarantees 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.