Although the NFT venture by Porsche is commendable, it turned into a disaster. The NFT collection has run out of steam already, and the team’s incompetence reared its head. The collection will unlikely recover, although it still holds over 500 ETH in daily trading volume.
The Porsche NFT Summary
Many people were surprised to see Porsche create a non-fungible token collection. Although one can argue the Porsche 911 is a very iconic car, it wouldn’t necessarily make for a smart NFT investment. Those words would ring true in the days following the launch. On paper, Porsche’s NFTs would give token holders “a chance to co-create Porsche’s Web3 future”. A very weird way to phrase it, and a sentence that leaves much room for doubt. The car giant has not announced any Web3 plans, and they have never asked the public for their opinion either.
That said, there was a lot of interest in this new NFT collection. One downside was high the minting price was nearly 1 ETH, or close to $1,500. It is very expensive for a JPEG anyone can right-click and save. After all, its utility was a “future promise” rather than one holders could unlock today. The high price sparked disgruntlement over how Porsche wanted a quick cash grab rather than venture into Web3. That may still be true, although it is too early to conclude.
Overall, interest in the Porsche 911 NFTs dried up quickly. Ultimately, the team noticed it would be best to close the mint as things didn’t progress as planned. Moreover, holders quickly began dumping their assets on secondary marketplaces to recuperate liquidity. Flipping NFTs is a common objective but virtually impossible without sufficient demand. As such, it was cheaper to buy a resold NFT compared to minting one. That is never a good sign and often spells disaster for collections.
Ultimately, the team decided to close the mint and figure out a way to stabilize the price. A smart decision, as less than one-third of the total supply had been minted. However, the team’s incompetence became apparent. Announcing the mint’s closure ahead of shutting it down on the site is never a smart idea. While it pumped the price on the secondary market, it allowed others to take full advantage. Multiple people minted an NFT and flipped it on the secondary market for a quick profit.
What Comes Next For Porsche?
As it is now impossible to mint Porsche 911 NFTs, one can look to the future. The collection still has a price floor of over 1.9 ETH, even if that is a nearly 26% decrease in the past 24 hours. Remember, there is still no utility for these non-fungible tokens, and they may not be implemented for months or years. All momentum is speculation and hype surrounding the brand rather than long-term NFT viability.
The current collection spans 2,363 NFTs, owned by just under 1,500 wallets. With over 350 ETH in daily trading volume, the collection is still doing OK. However, momentum has stalled, and overall interest continues to taper off. Rekindling that momentum will require a course change. Unfortunately, it seems Porsche had big cash-oriented plans for Web3, rather than providing value to investors. That may still change, though.