Porsche launched its own NFTs… and it was a colossal failure

Porsche has launched the world’s first NFTs. Unfortunately, the car brand’s collection failed to convince investors…

Porsche, one of the world’s most famous automotive brands, has launched its own collection of non-fungible tokens (NFT). Included in the collection 7,500 digital works different. Each token represents a car from the automotive giant. They are all the same.

To receive one of the drawings developed by the brand, Internet users are invited to visit the Porsche site for “mint”, i.e. issuing NFTs 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 must first join a whitelist.

Subsequently, the collection was opened to all investors. Every digital production is offered at price of 0.911 ether, or around 1,300 euros, in homage to the brand’s legendary Porsche 911. After the tokens are created, some of them are sold on OpenSea, the important marketplace for the NFT ecosystem.

The sinking of Porsche NFTs

Unfortunately, the Porsche collection did not achieve the expected success. Since launch, the brand has only sold outjust over 1800 NFTs, out of 7,500 available, over two days. Only 25% of the total supply found takers. To boost sales, Porsche’s social networks posted a host of messages relaying the collection. pointless

Porsche quickly realized its failure. The car company finally the initiative was suspended in the face of a cold reception from consumers. In a message posted on Twitter, Porsche said it had heard the opinion of NFT holders:

We will be reducing our supply and ceasing the mint to move forward in creating the best possible experience for an exclusive community “.

In addition to the announcement, the price of NFTs on OpenSea contracted. Many Porsche tokens are now around 0.5 ether, or around 700 euros, far from the initial price offered by the brand. Faced with lower prices, potential interested buyers should look to OpenSea instead of creating a token through Porsche. Soon after, the ability to create collection tokens was suspended.

Note that Porsche is not the only car manufacturer to enter 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. Automobile brands are part of a trend pioneered by big names in luxurysuch as Ralph Lauren, Fendi, Dolce & Gabbana, Louis Vuitton and Balenciaga.

Also read: Apple also wants to make money with NFTs, but understands nothing about crypto

The NFT market continues to fall

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 anemic. According to data from DappRadar, the market dropped to just $1.2 billion in sales, from $12.4 billion in the first quarter of 2022.

This is also one of the elements that explains the deep indifference of investors for the Porsche initiative. While the traditional market and the cryptocurrency market have contracted significantly, investors are short of money to invest. In this context, it can be estimated that the selling price of NFTs is too high to attract speculators or fans of the brand.

Finally, Porsche is also guilty of clumsy communication. On its website, the automotive firm does not mention the possible advantages offered by NFTs. Generally, holding a non-fungible token launched by a luxury brand grants access to exclusive content. Unnecessarily quiet, Porsche is content to promise exclusive benefits to its fans.

Finally the brand is detailed the list of benefits offered to holders of a Porsche NFT, after the announcement of the project’s demise. The company specifies behind-the-scenes access to the world of Porschewith the replacement of “ designers, engineers, racing drivers, artist ambassadors or Web3 partners”.

In addition, consumers are 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 have rights physical thing”, again guaranteed exclusivity. The brand ensures that the NFTs created can be gradually personalized to be unique. More importantly, each NFT guarantees free access to ” exclusive events »where it is possible to use cars of the brand and of ” meet other Porsche pioneers and insiders ». This communication is unfortunately a bit late.

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Porsche

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