“Can I buy a real Porsche?” tweeted Alfonso Olvera, CEO of NFT ownership platform Tokenproof, on Jan. 24.
Olvera’s joking tweet echoes the reaction of some in the NFT community to the first NFT collection from renowned German sports car maker Porsche.
Porsche’s project struggled with sales from the beginning, and there were posts on Twitter that criticized the project and used it as a joke. And then the eventual demise of Mint should serve as a lesson to companies on how to build a Web3 strategy.
Related article: Porsche suspends NFT issuance ─ Criticism of pricing etc.
On January 23, Porsche started the mint (issue) of the NFT collection. The famous Porsche 911 NFT was priced at 0.911 Ethereum (ETH), approximately $1,490. Porsche also introduced future features such as the ability to customize the design and rarity of NFTs.
However, the project got off to a poor start. As of the afternoon of the 24th, out of the 7,500 NFTs prepared, only about 1,600 were minted. In the secondary market (secondary market) such as OpenSea, it was resold for less than the mint price.
Realizing the lack of popularity, Porsche announced the suspension of the Mint.
Building projects for the community
NFT creators and collectors have been tweeting their dissatisfaction with the project since the mint launched on the 23rd.
After seeing Porsche’s underwhelming web3 release, following other underwhelming releases from similarly huge brands – it begs the question, who is advising them? I’d like to officially put myself out there as a consultant to throw ideas around with. Brands: stop rushing.
—BETTY (@betty_nft) January 23, 2023
Looking at Porsche’s disappointing Web3 release, and similar disappointing releases from big name brands, who is advising the big brands? question arises. I would like to formally run as a consultant to present ideas.Brands, don’t panic
During the hype of 2021 and early 2022, many brands were eager to get into Web3 through NFT projects, cryptocurrency payments, and Metaverse efforts. Some brands saw such an effort as a shift in business strategy and a core effort to reach a digitally native consumer, while others saw it as an opportunity to profit from what might be a passing fad.
For many avid collectors, artists, developers, and gamers, NFTs and Web3 technologies aren’t just a passing fad. Many see Web3 as a natural evolution of the Internet that puts power and ownership back in the hands of creators.
“Web3 is not a group of consumers that brands exploit. It’s an opportunity to provide new value to consumers and build a community around brands.” speaks.
Over the past few years, major companies have adopted blockchain strategies, with varying degrees of success. Whether it’s NFT, virtual wearables, or utility tokens, companies that build projects from a long-term perspective, employ staff who understand Web3, and focus on community development are producing favorable results.
half these nft projects have advisors who do absolutely nothing and the other half reeeeeally need them
—andrew (@andr3w) January 24, 2023
“Half of these NFT projects have advisors who do nothing. The other half really need advisors.”
Diverse Initiatives by Brand
In November 2022, Nike launched .SWOOSH, a community-based platform for creating and purchasing digital wearables such as sneakers and sportswear. It is also an educational platform for onboarding large numbers of sneaker fans to Web3. The first NFT collection is scheduled to be released this year.
Nike has spent several years building relationships, researching NFTs, the Metaverse, and blockchain technology to make the project a success. In 2020, we will be testing RFID tags on sneakers to record data using blockchain. A year later, it acquired digital wearables company RTFKT, aiming to bring virtual sneakers to the Metaverse.
Some brands leverage existing NFT communities and release products targeting NFT holders. In August 2022, Tiffany created an NFT collection of diamond necklaces, targeting holders of its popular NFT, CryptoPunk.
Starbucks has also opted to deploy its wildly popular loyalty program on blockchain. In December 2022, it released a beta version of its rewards program, Odyssey, with features to help users onboard to Web3. For example, users can purchase NFTs within the app without having to purchase crypto assets or prepare a wallet.
It’s not easy for big global brands to incorporate emerging technologies into their existing paradigms in a meaningful way. But the brands that have made it in are sharing strategies to make it easier.
not profit first
Former president of Time magazine, Keith Grossman, who launched the NFT collection “TIMEPieces” and realized the company’s entry into Web3, is currently the president of the electronic payment platform “Moonpay”. , believes brands should view Web3 as a way to deepen engagement with consumers.
“There is no one-size-fits-all solution,” Grossman said, adding, “Sometimes it’s community, sometimes through membership, sometimes through rewards.”
“But revenue is not the primary driver of this evolution. It should be the result of thoughtful strategy and execution,” Grossman noted.
Amanda Cassatt, founder and CEO of Web3 marketing agency Serotonin, said many brands are just looking for profit, but to find the best product market fit, they have to dig deeper. I think there is
“Nowadays, brands are expected to add value before asking the community to buy something from them. If you start there, you are starting the right relationship to build long-term trust. (Mr. Cassatt)
More brands are expected to enter the NFT and cryptocurrency space this year, but industry experts believe it is important to understand the target audience and add value to areas where culture and engagement already exist. we emphasize.
“There’s a lot of value and long-term potential that’s definitely going to be positive for us to get into this space,” said Eric B., founder of generative art platform Art Blocks. Erick Calderon tweeted.
Editor’s note: Porsche’s NFT raised the floor price on the major NFT marketplace “OpenSea” after CoinDesk published this article.
Related article: Porsche NFT, floor price rises ─ Supply decrease due to suspension of issuance boosts
Following criticism on Twitter, Porsche stopped mint (issuance). Initially, the planned number of 7,500 to be issued remained at just under 2,400, and the increase in rarity has resulted in pushing up the floor price. It was a case that showed the potential as well as the difficulty of the Web3 strategy.
｜Translation and editing: Akiko Yamaguchi, Takayuki Masuda
| Image: Interior of an old Porsche 911 (Porsche)
｜ Original: Porsche’s NFT Debut Is a Reminder to Let Web3 Natives Take the Wheel