Porsche launched its first NFT collection as a tribute to the 911 model, with 7,500 NFTs at a set mint price of 0.911 ETH.
The collection faced a slow start and saw a decrease in value on the secondary market, as the floor price crashed to 0.89 ETH, down from the initial 0.911 ETH minting price.
The NFT community has criticized Porsche’s lack of consideration for Web 3.0 principles and is raising questions about the efficacy of the company’s attempt to transition into the space.
German car giant Porsche debuted its first non-fungible token (NFT) collection on Monday, January 23rd, 2023, in homage to the iconic 911 model. The NFT collection comprised 7,500 NFTs with a set mint price of 0.911 ETH, worth approximately $1479.54 USD per NFT at the time of writing.
Within the first hours of the sale, only 16% of the collection was minted on Porsche’s official website. Secondary market sales appeared relatively idle, as the floor price dropped to 0.89 ETH, worth approximately $1446.61 at press time. NFTs were sold on secondary marketplaces for less than the initial price of 0.911 while the mint was still ongoing.
The goal of the NFT collection was to create a virtual community of 911 owners to “co-create the future of Porsche” in Web 3.0.
Despite the considerable foundation Porsche established in the Web 2.0 era, Crypto Twitter opines that the car brand’s attempt at transitioning into Web 3.0 has contradicted the inherent principles of the space.
Crypto Twitter Gears up with Reactions
Porsche presented the NFT collection at the Art Basel International Art Fair on December 1st, 2022, and the unexplored niche of car NFTs was supposedly highly anticipated by the NFT community.
However, since the launch, Crypto Twitter has shifted into hyperdrive with reactions to the NFT collection.
Twitter user BitSaga set out four issues that they believe impeded the success of Porsche’s NFT collection launch:
1 – Price is 10x a typical mint (You’ve proven yourself in your industry, but not in Web3)
2 – 7,500 supply is too plentiful
3 – Lack of awareness on timing / market conditions
4 – Utility is unclear beyond the token customizations (Space seems to want IRL experiences)
— BitSaga (@bitsaga128) January 24, 2023
Another Twitter user, wilder.frank, believes that Porsche’s attempt to enter the Web 3.0 space is a lesson for brands to learn from:
“The Porsche mint is a perfect example of why even the most established brands need to partner with Web3 natives to enter the space in a real way.”
190.eth saw an opportunity for engagement and insight, publishing a Twitter poll asking the community to vote on whether they would buy into the Porsche NFT project. The final results were quite conclusive:
Porsche 911 nfts minting for 0.911 eth.
Do you dare to buy this kind of project that obviously grabs a wave of money and then plummets?
— 190.eth (@190_eth) January 21, 2023
Other users were less serious in their feedback, using the opportunity to shine a humoristic light on the event:
Considering the divisive reaction on Twitter, it is not surprising that the Porsche NFT sale has struggled to gain traction. Indeed, at the time of writing, there are still 6055/7500 Porsche 911 NFTs on the official website, indicating that just 20% of the collection has been minted.
On the Flipside
Crypto Twitter anticipates interest in the Porsche NFT collection to plummet further, along with its value.
It remains to be seen if Porsche will address the situation and act on community feedback.
Despite the turbulent Phase 1 launch of the NFT collection, Porsche has thus far accumulated an approximate volume of 1,300 ETH ($2.1M) from successful sales.
Why You Should Care
The Porsche 911 NFT collection crash demonstrates the challenges that established brands may experience when transitioning into Web 3.0. The shift becomes significantly more challenging when brands do not prioritize the community, nuances, and elements critical to the success of Web 3.0 projects.
Read more about the initial announcement of the Porsche 911 NFT collection:
Porsche Showcases First-Ever NFT Collection at Art Basel in Miami Beach
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