Is Porsche Stirring New Life in the NFT Markets?
With the sudden rise in cryptocurrency prices during January, the NFT market has been largely overlooked as many investors still view the concept of NFTs with disdain and confusion, wondering where the value comes from. However, a new collection created by Porsche is stirring new life despite a lackluster mint that annoyed the community, causing many to question the nature of Porsche’s NFTs.
The .911 Eth mint price was bad
Issues with the Porsche NFT collection first arose when people noticed that the mint price for the collection would be .911 Eth to match the title of their most popular model, the Porsche 911. Although the price was a cute acknowledgment of the model’s half-century-long success, it was a gross over-estimation of the NFT market and how much collectors are willing to spend on digital goods that tend to depreciate in value.
High mint prices close to 1 Ether or more have largely gone by the wayside following the crypto market crash in the middle of 2022, leading to a frenzy of degen trading speculation that saturated the NFT market and turned away serious investors.
To keep the collection alive, the team behind the Porsche NFT collection decided to end the mint at 2,363 and subsequently swept the floor to encourage more buying. Since then, the floor price for the tokens have risen above 2 Ether, making some wonder if they missed out.
What utilities do Porsche NFTs have?
Looking closer at the collection, it appears that a lot of the utilities and rewards are being kept under wraps with little description of what holders can expect in the future, but it appears that Porsche is interested in delivering virtual goods and experiences that, according to their website, “money can’t buy.”
Furthermore, the collection offers a unique function that will allow holders to detail and decorate their virtual 911s using a host of designs that accumulate to more than 150,000 different possibilities similar to y00ts and Doodles 2.
Luxury NFTs
The project is the latest in a line of luxury brands that have consistently released collections on various blockchains since the bull run of 2021 first began. However, the Porsche NFT still lacks something distinct to distinguish it from the other companies following the same trend.
Tiffany, for example, created an exclusive collection for Cryptopunks that involved highly valuable jewelry mimicking the depiction of many distinct artworks from the blue chip set. If Porsche wants to stand out, it’s imperative that they find a way to deliver a similar product that’s relatable to their brand.
Companies are trying to make NFTs happen
Luxury product companies aren’t the only companies hopping onto the NFT bandwagon either. Some of the world’s largest companies including Playboy, Nike, and the NBA have already established their collections with mixed results.
However, many of these corporations have reputations to consider along with the resources and means necessary to fully deliver on the plans established within their roadmaps, unlike most smaller teams that have been known to offer little more than promises.
