A famous manufacturer of luxury sports cars and SUVs announced in November 2022 the release of 7,500 Porsche 911 NFT cars that users will be able to customize. The announcement said that it would be possible to select both performance and appearance features with 150k+ variations.
On January 23, minting started in four waves for “allowlist” holders. At the time of this publication, only 1,401 NFTs out of 7,500 had been minted via the official NFTs website.
While on OpenSea the initial price was 3 ETH (about $4,900), as of January 24 it had dropped to 0.909 ETH (about $1,400). There are 1,381 Porsche 911s on the marketplace, of which only 309 were sold.
At the same time, the sales volume for the day was $2,569,929, according to Cryptoslam. This is better than the Mutant Ape Yacht Club NFT with $1,755,501 in trading volume, but worse than the Sewer Pass with $7,458,373 (these NFTs give access to Yuga Labs’ Dookey Dash game). However, the same chart shows that trade in Web3 cars has stalled, and at least a few NFTs have been resold at a loss.
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For example, as Twitter user notEezzy pointed out, one user bought a Porsche NFT for 2.5 ETH ($4,000), kept it for 2 hours, and then sold it for 1.03 ETH ($1,600).
F in chats to the dude that:
> bought the porsche nft for 2.5e
> held the nft for 2 hours
> sold for 1.03e— notEezzy 🧸 (@notEezzy) January 23, 2023
Why did the Porsche 911 NFTs launch fail?
1. The high starting price of a quite large collection on the background of a bear market.
Porsche needs to fire their nft marketing guy & advisors.
10k collection with 0.911e mint price in a bear market?? That literally screams cashgrab and red flags.
— Crypto Coach 🐒📈💰 (@WisdomMatic) January 23, 2023
2. Web2 business is trying to join Web3 without having enough knowledge of it.
The failure of @eth_porsche makes me feel good about the Web3 space & how it’s maturing over time.
At the same time, I feel what a mocking attitude these Web2 Brands thinking they will come & pump their 💰 just by a few tweets with no vision for Web3.
Enough💩#Web3 #NFTs #ETH pic.twitter.com/2WL9MA4iAO
— The Coll3ctor (@The_Coll3ctor) January 24, 2023
3. Lack of community. The brand tried to sell very expensive NFTs without having a fan base for the collection.
My number one piece of advice for major brands entering the space is make your first effort as close to free as possible. Find your community and prove yourself to them before you ask for millions of dollars.
— Dave💧💧💧 (@dave_krugman) January 23, 2023
4. Lack of games or any useful entertainment for owners.
4/ Lack of games, or any fun utility for the holders.
The big reveal was that each NFT comes with a unique license plate.
In 2023, collectors expect #utility.
We hope other brands learn a lesson from this and partner with #web3 natives like https://t.co/u28vciETSg
— Oort Digital (@OortDigital) January 24, 2023