NFT and Porsche. Porsche’s entry into the NFT market for the past few days has been described as an “inexperienced” example of entering the web3 market. But is it really?
The NFT Mania: Driving Blockchain Hype
Observing the past irrational mania around NFTs has driven the blockchain market. Pictures sold for millions – this is not just a clickbait title of articles circulating on the internet, but the actual reality of the past market. However, NFTs are a topic with future potential.
NFTs and Their Role in the Web3 Landscape
NFTs are a piece of the puzzle in the web3 landscape. NFTs can be seen as a membership card in modern communities built using blockchain technology. There have been, are, and will be many of these communities, and the extent to which an NFT holder can gain by owning an NFT from a specific community varies.
Porsche’s Ambitious NFT Collection: A Missed Opportunity?
Porsche, leveraging the new trend of building blockchain-based communities using NFTs, announced the release of its own NFT collection. The promotional campaign, including the project’s website, is modern and professional. The benefits for token holders may also encourage their acquisition. The community (market) quickly caught wind of the famous brand’s entry into web3, and the project gained media attention. Porsche built an early community that was eagerly awaiting details of the NFT collection. A few days ago, Porsche announced that it would release a collection of 7,500 NFT tokens at a price of… 0.911 ETH (around $1,400). Market reaction? Fail – Porsche doesn’t understand NFTs (the mint ultimately amounted to 2,363 tokens).
Assessing Porsche’s NFT Strategy: Community and Speculation
Several case studies circulating on the internet describe alleged mistakes that Porsche made in its campaign, including the high price, considering the (large) size of the collection and the market conditions (bear market). Is this a fair assessment?
Community Dynamics: A Key Factor in Porsche’s NFT Sales
In my opinion, the market’s dissatisfaction and the lack of sales success for the collection resulted from the community that Porsche managed to build. It’s not a community of Porsche enthusiasts but rather a community focused on quick, speculative profits. Buying tokens cheaply when the initiative is just starting, and selling at a higher price when there is demand in the market. Perhaps the $1,450 price seems too high in relation to the expected return from token sales a few days later? From this perspective, such a community is not the one Porsche intended to build. To be honest, it’s the opposite of the target community: solely focused on short-term relationships and quick profit realization.
How do I know what kind of community Porsche has built? Well, I don’t know for sure. I can only guess by observing Twitter. I also know that Pump & Dump, NFT speculation, and quick profits are commonplace in the crypto market. However, please consider this as my subjective opinion.
Porsche’s Motivation: Profit or Building a Genuine Community?
Porsche, by releasing an expensive but massive collection, also didn’t quite hit the mark. Perhaps they just wanted to make money. Nevertheless, I believe that the current frustration in the crypto market and the dissatisfaction of the NFT community with Porsche are more due to the lack of an opportunity to make quick, speculative gains.
I design and build enterprise IT solutions based on blockchain technology.
I am blockchain architect in Trans.eu building ECMR (digital CMR Consignment Note) based on blockchain. I teachabout Bitcoin, blockchain and decentralization via Linkedin and blog: https://mobycrypt.com.
