Porsche's NFT Collection Launch Ends in Disappointment – What Went Wrong?
Despite its ambitious plans to venture into the non-fungible token (NFT) market, German luxury car brand Porsche has managed to sell only about 25% of its first collection of 7,500 tokens. In just over 24 hours, some 1,909 of the NFTs had sold for ETH 0.911 per unit, or about $1,414 as of 2 p.m. UTC today.
“Our holders have spoken,” the brand’s dedicated Web3-focused account said on Twitter. “We’re going to cut our supply and stop the mint to move forward with creating the best experience for an exclusive community. More info in the next hours.”
Porsche’s NFT mint closed on Jan. 25, 6 a.m. UTC-5, according to the company.
The German auto maker first presented its NFT collection, which features images of its iconic Porsche 911 Carrera sports car, at the Art Basel show last November, U.S. magazine Fortune reported. The brand promoted it as “rare, iconic and timeless like its sports cars.”
The company’s failure to attract solid market interest is attributed by some commentators to the insufficient understanding of the rules that govern the crypto markets and their detachment from Porsche’s traditional sales channels.
Some industry observers criticized Porsche for its lack of sufficient cooperation with crypto space leaders and expecting the sale would trigger high sales just because it was launched by an internationally recognized brand.
“Fortune 500 brands, take note on Porsche’s Web3 launch today. You can’t just learn the jargon, show up to one Art Basel and expect results. It’s imperative to work with cultural leaders in the space who can hold your hand to help you CONTRIBUTE 1st. Then launch later,” Kai Henry, the CEO and founder of Fewture Studios, said in a tweet.
Brandon Frankel, the chief business officer of virtual concert production company NoCap Shows, agreed that Porsche’s approach to the NFT market was part of a larger problem, with many global businesses failing to adapt their marketing strategies to the reality of the cryptosphere, and treating it like any other industry.
“This is so typical of big brands- they want to 'innovate' and push boundaries, but if they ever do, they don’t listen or they hire the wrong agencies. It’s wild,” Frankel said in a tweet.