Porsche NFT Collection Fails to Gain Traction as Mint Kicks Into Gear
German carmaker Porsche released its first non-fungible token (NFT) collection on Monday, though the project isn’t racing towards high resale prices as fans may have speculated.
The 7,500-edition collection, which pays homage to the brand’s iconic 911 sports car, opened minting for allowlist holders at 9 a.m. ET on Monday in four waves of one hour each. After the initial allowlist mint ended, the mint was released to the general public with an open-ended stop time. Collectors were allowed to mint up to three virtual 911 Porsches at 0.911 ETH each, roughly $1,490.
The next phases of the mint process allow holders to choose one of three “paths” to follow and customize the design and rarity of their NFTs.
In the hours after the mint initially opened, sales of the collection appeared to stall. At the time of writing on Monday evening, only 1,198 NFTs – about 16% of the total collection – had been sold through Porsche’s official website.
Sales on the secondary market also appeared idle. At the time of writing, the collection’s floor price was 0.89 ETH, or about $1,450 – meaning, the collection was selling for $50 cheaper on secondary marketplaces such as OpenSea while the mint was ongoing.
Porsche announced its buzzy NFT endeavor at Miami Art Week in December with much anticipation. The company partnered with German digital collectible company Fanzone’s subsidiary Road2Dreams to distribute the tokens.
Some Twitter users pushed back against the collection, noting its expensive mint price and sales strategy that appeared misaligned with the ethos of Web3.
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.
— 0://wilder.frank (@realfrankwilder) January 23, 2023
Could I get some help?
I minted a Porsche NFT but when I checked my wallet, instead I found a 2001 Chevy Cavalier
I hope this can be fixed ASAP pic.twitter.com/FuqgsONI6D
— BC (@BcSmithHere) January 23, 2023
So, 1071 Items minted, FP under MP ... Game is done I think, and went as expected, unfortunately. Please @eth_porsche, you're an amazing brand, but when you come in web3, act as Web3, not web2.
— h3yd3n.eth (@h3yd3nNFT) January 23, 2023
Porsche and Road2Dreams did not immediately respond to CoinDesk for comment.
Dave Krugman, artist and founder of NFT creative agency Allships, shared his thoughts about the collection’s mint price on Twitter, calling it out touch with its target Web3 community. He told CoinDesk that larger Web2 brands entering the Web3 space must act for the long term when releasing NFTs.
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
“When you begin your journey in this space by extracting millions of dollars from the community, you are setting impossibly high expectations, cutting out 99% of market participants and overvaluing your assets before you have proven you can back up their valuation,” said Krugman.
“If you can start from the bottom up, you build an organic community of committed advocates with aligned incentives.”