On November 29, 2022, Porsche announced its entry into the virtual world and will sell an NFT collection.
The designer of Porsche's NFT collection is 3D artist Patrick Vogel, and the project to issue a 7,500 NFT collection inspired by the legendary Porsche 911 attracted the attention of many users, and the NFT collection was launched on January 23, 2023.
However, despite attracting the attention of many users, the sales of the collection, which was sold at a high price of $1,490 at the time of release, did not increase, and of the 7,500 NFTs prepared, only about 1,600 were issued as of the next day. In secondary markets such as OpenSea, they were being resold for less than the issue price.
Realizing the lack of popularity, Porsche announced a suspension of issuance. As of February 2023, 2,363 NFTs were ultimately issued. During this time, Porsche reduced the initially planned supply of NFTs due to sluggish sales, and added benefits (utility = the use value of NFTs), which led to a rise in the price in secondary distribution (resale).
This was a measure that pleased NFT holders who were looking to resell, but Porsche's ad hoc response caused distrust among actual NFT holders and sparked outrage. Thus, Porsche's first NFT project became known as a representative example of a failure.
So why did Porsche's NFT project end in failure? The first thing that comes to mind is the high price setting.
Due to the nature of NFTs, high price setting is not necessarily a positive thing. This is because NFT holders do not pay for an already established brand, but for new value. This is why many NFT projects are distributed for free.
However, Porsche set a high price without taking into account the true nature of NFT holders. This means that only the appearance is an NFT, and in reality they are just selling the Porsche brand.
The gap between Porsche's understanding of NFTs and the understanding of NFT holders who actually buy and sell them may be one of the reasons why Porsche's first NFT project attracted a lot of attention, but did not lead to sales.
Another possible reason is the unilateral suspension of supply and the later introduction of special benefits.
The price of NFTs is determined by supply and demand. If the issuer changes or stops the supply, ignoring the previous purchasers, the premise of the price will collapse, and it is inevitable that it will be said to be essentially a dishonest response to the previous purchasers.
The same goes for the later addition of special benefits. Either of these actions would have been enough to earn the distrust of NFT holders, but Porsche did both.
That being said, It is so natural that they were criticized by NFT holders. This is also evidence of the gap between Porsche's understanding of NFTs and the NFT holders who actually buy and sell them. As a global brand, if they do not recognize and adjust this gap in the future, they will repeat the same thing.
Nike's Web 3.0 platform ".SWOOSH" is a community space where anyone can collect digital items such as sneakers and participate. Items collected there have various benefits (utility = use value), such as being able to wear your own avatar, and creators can sell items they have designed on ".SWOOSH" and receive revenue distribution through royalties.
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