🏎️ Shifting Gears

Market Meditations | January 27, 2023

On Monday morning luxury sports car manufacturer Porsche joined the metaverse. The company released 7,500 digital replicas of the iconic 911 model and priced each NFT at 0.911 ether (ETH), or about $1,490.

  • Initially, the release didn’t go as planned with only 1,600 or the 7,500 NFTs having been minted by Tuesday afternoon, with many NFTs selling on secondary marketplaces like OpenSea for less than the mint price.
  • In the 24 hours following the mint, NFT creators and collectors took to Twitter to voice their frustrations about how the project was created, marketed and sold. Twitter account Betty_nft, CEO and founder of Dead Fellaz questioned the direction behind the NFT strategies deployed by legacy brands and stated they must “stop rushing”.
  • Porsche noted the lack of momentum and quickly shifted gears. Its official account tweeted, “our holders have spoken”, before announcing the mint price would be slashed in half and the total supply reduced to 2,363. 
  • After the initial troubles following the release, the Porsche NFT project is driving forward as intended. The collection’s floor price has more than doubled from its original mint price currently standing at 2.878 ETH.
  • Porsche announced its Web3 strategy on Wednesday, detailing its plans for its NFT mint. The tokens will have varying levels of rarity and give collectors access to exclusive events and experiences in the future. A spokesperson for Porsche stated that the NFTs are intended to be a long-term investment and that the company is focusing on offering the most unique experiences to its community, rather than the size of the community itself.