The car brand is entering a big player like Porsche Web3 The space is usually a cause for celebration NFT collectors. However, pre-launch anxiety quickly turned into a 1,800 NFT rally this week when Porsche’s pricey NFT drop fell well short of sales, forcing the marque to announce plans to shift gears and cut supply.
Porsche’s project focused on the German automaker’s iconic 911 sports car, which is slated to hit 7,500. Ethereum NFTs that will register the vehicle and give owners access to events and exclusive merchandise. It will also allow crypto-savvy car enthusiasts to vaguely “help design the future of Porsche in the virtual world.”
But the buzz around the project took a sharp negative turn last Friday after Porsche announced it would do so Selling NFTs for 0.911 ETH each, or about $1,475 as of this writing. This is a steep asking price in an NFT market lost a lot of steam since early last year, especially for a project with several thousand such NFTs on offer.
The backlash from Crypto Twitter was swift and fierce. Prominent builders and collectors in space he answered He called the move “tone deaf,” “ill-informed” and a “money grab” as the tweet garnered more than a million impressions, mostly through mocking shares.
Some suggested that 0.0911 ETH (about $145) would make more sense. But Porsche did not directly acknowledge the public backlash and did not change its plans.
Shortly after the public mint went live on Monday, initial sales quickly slowed down — and in what seemed like the death knell for any fledgling project, NFTs quickly sold below mint on secondary markets as owners fled the scene. As of this morning, only about 1,500 NFTs had been minted. Porsche then swung into action.
The official account of the project “Our owners have spoken” he tweeted today. “We will be cutting our supply and ceasing mint operations to move forward with creating the best experience for an exclusive community. More information in the next few hours.”
This is an unprecedented example of a big brand trying to get liquidity from the community without connecting to Web3.
Porsche had a .911 mint in a bear market for 7500 units. Of course it failed. It tries to raise prestige alone, without any marketing. https://t.co/0HFbpxgRDP
Just over 1850 NFT minted as of this writing, now on sale it will end at 6 am on Wednesday. The floor price, i.e. the value of the cheapest listed NFT on a market, has changed, briefly rising above the 0.911 ETH mark on the OpenSea market, but then falling again. Currently, he It sits at 0.905 ETH (about $1,465).
It remains to be seen how Porsche will fare with the smaller NFT owners association. The company did not respond Open the password‘s requests for comments, both before and after today’s announcement.
Even the decision to announce plans to kill mint but not do so immediately was criticized by some. Rug Radio CEO Farokh Sarmad called the project’s Twitter messaging, writing“Whoever runs @eth_porsche you are not helping the @Porsche brand and you are doing evil.”
This mint didn’t close and the tweet made people FOMO to mint more NFT at 0.911 ETH. You can check the chain, but the amount sold in the last 2 hours after the tweet is quite large. Whoever runs @eth_porscheyou are not helping @Porsche brand and you are bad. https://t.co/RRn4YO8B7e
Porsche is the latest example of a branding effort gone wrong in the Web3 world. While some traditional companies have been praised for partnering with existing NFT projects Budweiser and Adidas did – or used the technology in ways that were not a revenue driver (eg Starbucks and Reddit), others have faced serious criticism
Pepsi’s Mic Drop is a notable example – even as a free mint, it was criticized for misleading messaging and weird artwork. A recent Game of Thrones NFT launch met with widespread derision for generic, flawed artwork. And although it eventually sold, last year Tiffany & Co. It was associated with a decrease in NFT. CryptoPunks– themed pendants criticized for its expensive mint price.
Celebrity-related NFT projects have faced similar criticism in the past, whether they sold well or not. For example, Donald Trump’s last collection was like this widely ridiculed— even by Trump supporters — but eventually sold and increased in value. Project inspired by Michael Jordan launched in Solana last year by his son cut off its supply after a slower-than-expected mintage.
More broadly, Web3 proponents are increasingly interested in brands trying to build in the space by giving away NFTs or making them affordable and accessible. Attempts by established firms and celebrities to simply capture value through high prices and minimal value do not work well.
Porsche’s fall is another example of the latter, according to many observers, and the brand may have learned a hard first lesson in Web3 as it considers a changed path ahead.
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