Porsche NFT failure was stated as due to a lack of community and following consultation
Big name brands and companies have been utilizing non-fungible tokens (NFTs) to build upon their business in recent years. However, not all companies have been successful in this endeavor. One example of this is Porsche, the German luxury car brand, which recently launched its first collection of 7,500 NFTs and managed to sell only about 25% of them. In just over 24 hours, only 1,909 of the NFTs had sold for ETH 0.911 per unit, or about $1,414.
The failure of Porsche’s NFT launch is attributed by some commentators to the brand’s insufficient understanding of the rules that govern the crypto markets and their detachment from Porsche’s traditional sales channels. Porsche’s 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, is also a major factor in this failure.
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
Kai Henry, the CEO and founder of Fewture Studios, said in a tweet, “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.”
This is not the first time that a big brand has failed to succeed in the NFT market. Many global businesses have failed to adapt their marketing strategies to the reality of the crypto sphere, and have treated it like any other industry. Brandon Frankel, the chief business officer of virtual concert production company NoCap Shows, said in a tweet, “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.”
One of the main reasons for this lack of success is that many companies refuse to listen to their consultants or specialists in the field. They may hire consultants, but never listen to their advice, which leads to a lack of understanding of the crypto market and its rules. This can lead to a lack of interest from potential buyers and ultimately, a failure in the market.
Another reason for the failure of Porsche’s NFT launch is the prolonged bear market. The prolonged bear market has resulted in a lack of interest in NFTs, and many investors are hesitant to invest in them. This has led to a decrease in the floor price of Porsche NFTs, which has dropped to 0.9079 ETH from 3 ETH during the launch.
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
It is clear that big-name brands and companies can utilize NFTs to build upon their business, but they must understand and adapt to the rules of the crypto market. Companies must also listen to and work with cultural leaders in the space who can help them contribute to the market before launching their NFTs. Porsche’s failure to do this has resulted in poor performance in the NFT market. As the NFT market continues to evolve, it is important for companies to stay informed and adapt to the changes in order to succeed in this market.