Learning from the PORSCHΞ 911 example, NFT strategy in companies: HashHub Research | coindesk JAPAN

*This article is an excerpt from the report of “HashHub Research”. At the end of the article, there is a URL where you can download the archive video of the NFT seminar hosted by HashHub for free.

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Whether the NFT series released by the automobile manufacturer “Porsche” is a failure or success, the mint event of the NFT series with the motif of Porsche 911 held in January 2023 is sluggish, and the mint price breaks 0.911 ETH a few hours after the start of the mint event. It seemed to be branded a failure within hours of launch due to poor performance and backlash from the community.

However, a few hours after receiving a backlash from the neighborhood, the cancellation of the public mint event was announced (tweet below) when 2,363 coins were minted, which was far below the originally planned total of 7,500.

The unscheduled cancellation of the mint event caused a supply shock, disrupting the market, and the Porsche NFT price, which had temporarily fallen below the mint price, rose to nearly 3 ETH. Looking at this phenomenon, the opposite reaction was made on social networks, which was inconceivable until a few hours ago, such as “Porsche NFT may become a blue chip”.

Transition of secondary sales price of Porsche NFT (Reference: https://dune.com/Eclipse/por)

The temporary criticism and temporary enthusiasm have begun to cool down, but even at the time of writing, a few days after the mint event, the secondary distribution price of Porsche 911NFT has remained at a floor price of around 2.1 ETH, which exceeds the mint price.

Whether the Porsche NFT was a failure or a success, I feel that it is too early to draw that conclusion at the time of writing, but at least this series of turmoil and the trends of Porsche before and after consider the NFT strategy. I feel that there will be lessons to be learned for brand companies that are in business.

This time, we will review the casting and distribution events from the preparation stage of this Porsche’s NFT strategy, and organize the points that went well and the points that did not go well while comparing it with the reaction of the actual neighborhood. Finally, while checking the roadmap shown at the time of writing, I will give my thoughts on possible future directions.

Porsche NFT strategy in preparation for the mint event

In November 2022, suggested Porsche’s entry into the Web3 area (announced). We will look back on what happened between this time and the mint event in January 2023, and organize the points of Porsche’s NFT strategy.

How Porsche plans to use NFT

At the time of writing, I believe that NFTs can be roughly divided into the following four types by classifying them according to their purpose.

Initially, Porsche announced on the official discord announcement channel that it would use Web3 tools to provide a place to connect and co-create with the community in order to realize both digital and physical experiences.

Reference: Official discord announcement channel

For this reason, the NFT series announced by Porsche is not a “collective NFT” that expects profits from the so-called brand IP, but a place to co-create with the community.“Access Token (Token Gate)”or“Membership Token”You may have considered using it as a

Also, since no royalty fee is set in the secondary market at the time of writing, I feel that it was not considered as a collective NFT for the purpose of storing value.

How to set goals: How was the target customer, total number of NFTs minted, temporary sales price, and distribution method decided?

Target customers: Ethereum users, not existing fans

Official Twitter “PORSCHΞ” newly opened by Porsche for Web3 @eth_porsche”, As you can see from the name of the official Discord “PORSCHΞ”, it clearly adopts a marketing strategy that is conscious of Ethereum and users on Ethereum.

As an option, there is an option to sell NFTs on a unique NFT platform that uses email address and password authentication for existing fan bases (e.g. Motoclub), or to sell NFTs on Solana or Flow, which can process transactions cheaper than Ethereum. Although it would have been, I feel the intention as an NFT strategy around choosing Ethereum, which is expensive.

At least Porsche has not adopted a sales method that considers the existing fan base in this Web3 area, so it is not targeted there. In this respect as well, we are not looking for new revenue from IP, but are looking for a form of co-creation with the community. It is presumed that

Also, this is just my speculation, but even if the NFT released by Porsche, a luxury brand, should not be minted and traded at a low price, the value of the brand as a result of NFT sales I also feel that it was targeted at the wealthy class on Ethereum who tend to be willing to trade relatively expensive NFTs in order not to damage their assets.

Total number of NFT castings, temporary sales price, distribution method

It is difficult to accurately estimate “how much, how many, how to sell and distribute” NFTs, and it can be said that it is extremely difficult to ensure the success of the mint event. However, it is hard to think that “how much, how many, and how to sell and distribute” is decided in a vague sense, so in general, quantifiable goals are defined at the planning stage and prioritized. They would have measured and evaluated before and after implementation. (Generally, demand analysis is performed based on official website traffic analysis, official social media account analysis, etc.)

By the way, the total number of NFTs planned by Porsche is 7,500, the temporary selling price is 0.911 ETH (about $ 1,420), and the sales method is to issue POAP as a proof of participation at the event in advance, and it is possible to purchase with a time lag depending on the holding conditions. It was something. Since the temporary selling price is an NFT with a Porsche 911 motif, I think that 0.911 ETH was selected as a reasonable price range from the name of 911. However, I do not know the intention of setting the number of castings to 7,500.

NFT strategy trends during and after the mint event

Mint event results and trends (reference: https://dune.com/Eclipse/por)

Looking back at the results of the mint event that Porsche held in January 2023. As explained at the beginning, the Porsche 911NFT mint event was officially closed within 24 hours of its start, before the total mintage was reached.

Looking at the results,The total minted number is 2,363, and the number of minted unique addresses is 1,405. In other words, there were only 1,405 addresses that decided to pay 0.911 ETH for the target NFT.

If you look at the process, you can see that the number of mints/h has drastically decreased around 5 hours after the start of the mint event. There are 5 levels of mint events in total, and you are given the right to mint preferentially according to your membership rank. Public Mint is 7 hours after the first minting starts. In other words, it can be seen that there was a shadow of demand even before the public release.

PORSCHΞ 911 floor price change (reference: Opensea)

Looking at the changes in the floor price at the time of secondary sales at opensea (above chart), it is confirmed that the mint price often fell below the same time period.

Whether the market environment was bad, the NFT itself was bad, the roadmap was bad, or the NFT selling price was too high for the total supply, I don’t know where to find the factors. However, at least at this time when this secondary distribution price was sluggishofficial tweetreceived comments criticizing the company’s NFT strategy related to the above.

*By the way, if the total supply is 7,500, there are some criticisms such as “0.911 ETH is too high” and “0.0911 ETH (approximately $142) is appropriate”.

After that, the project, which received these criticisms, was already sold at a fixed price, so it was difficult to reduce the minting price itself, so an official announcement was made, the mint event was suspended, and the initial total minting amount was reduced. made a decision. As a result, there was a supply shock, market turmoil, floor prices soared temporarily, and even higher prices due to attention on social networks.

Secondary Market Status (Ref: https://dune.com/Eclipse/por)

There was a tendency to favorably respond to the project’s quick response to critical comments and the accompanying rise in floor prices, but at the time of writing, the heat of the public had cooled down relatively, and the “1,405 unique addresses that were minted” As far as the results of 1,534 unique holders at the time (see the figure above)” are used as a reference, the enthusiasm and surge increased after the mint event ended.It’s just a small phenomenon created by the demand of only 129 people (addresses)I’ll make a note of that here. At the very least, the price has skyrocketed while there are few evaluators, so it is unclear whether the secondary distribution price will continue in the future.

Sorting out the Porsche NFT failure

1. Failed “price setting” and “distribution (supply)” strategies

Looking back on what was the failure factor of the Porsche 911NFT, the most prominent strategic mistakeFailure of “pricing” and “distribution (supply)” strategieswill be mentioned. “How much, how many, and how to sell and distribute NFTs with a certain utility”. The answer to this question could be sought by defining quantifiable targets at the planning stage, but at least the market conditions are constantly changing (especially after 2022, the market will be different than before). ) It will be difficult to accurately predict demand, such as reasonable price range and sales volume, based on past data.

Porsche NFT gives some community users the right to preferentially cast, but the primary selling price is uniformly fixed at 0.911 ETH, and it is said that the community has released it without searching for a reasonable price in advance. It is thought that it became the main cause to buy antipathy.

2. Possibility of misrecognition of NFT image

The second is my speculation, but I think that there is a possibility that there is a gap between the NFT image assumed by the project side and the NFT image recognized by the user (evaluating the project).

The author believes that the Porsche 911NFT was viewed as 2. access tokens or 4. membership tokens with the aim of creating a “place for co-creation with the community” from the initial concept stage. The main purpose is to store value like a collective NFT using a so-called brand IP because there is no royalty fee set and there is not much emphasis on earning profits through the secondary distribution of the NFTs created this time. I also feel that it shows the idea that it is not an NFT that has been made.

Looking at the above points alone, the Porsche 911NFT project seems to be searching for a Web3-like project that co-creates value with the community and returns the value created there to the community.

However, as a result, the Porsche 911NFT only sold 2,363, about 1/3 of what was originally planned, but in fact, it sold 2,153 ETH (approximately $3.4M). Approximately $10M if the original plan is followed despite the fact that the roadmap is not sufficiently shown, how to co-create value and how to return value to the community. was planned to procure

While aiming to be a Web3-native NFT project targeting Ethereum users, we were unable to fully explain how to use the raised funds and how to manage the raised funds. I also feel that I was treated as a “scam” by the community.

at least“Isn’t the NFT-based Web3 business originally not suitable for the purpose of profit and PR?”I feel that.This is because the so-called Web2 that is talked about in this industry is a model of “how to extract value from the community and users (follow, like, CV, etc.) and earn money”, and Web3 appeared as a backlash.“How to give back to the community”This is because there is also a direction that can be regarded as a model for the purpose of This point will be even more important if you are promoting Co-create, which is not a collective NFT for the purpose of storing value.

This does not mean that either model is correct, but while singing Web3 and singing co-creation, the project side sold it with the intention of the former (with the awareness of Web2), and the user bought it with the intention of the latter. would not be uncommon. However, at least if the target of the project was Ethereum users, who are relatively liberal, I feel that it was necessary to understand and follow the culture to some extent.

Summary | Personal opinion on future trends of Porsche 911NFT

But can the Porsche NFT really fail? When I say, “No, it’s still too early to say that,” I feel. In general, NFTs tend to be evaluated by the floor price, but the price of the NFT series, which has a small market circulation, easily fluctuates, and the high or low floor price of NFT tends to directly affect the evaluation of the project itself. Although it is certain, as mentioned above, the use of NFT and the business model under consideration are not uniform, and there are multiple types according to the purpose,What constitutes success depends on the purpose of the projectThere is a place.

Looking at the movements after the series of trends in the Porsche 911NFT this time, we have announced that we will be able to customize the Porsche 911 by February 2023. I don’t like Porsche enough to find this proposal attractive, so I’m only interested in how to specifically create demand for customization (distribute it as goods NFT?) and how to create value. I can’t hold it, so I can’t imagine Porsche NFT co-creating future value with the community (1,534 holder addresses) with these trends that can be confirmed at the time of writing.

However, not only the Porsche 911 NFT project, but many Web3 communities at this stage are still in the experimental stage of seeking the first group identity, and in that sense, except for some PFP NFT communities that are establishing group identities. have almost the same starting point, no successes or failures so far.

What is the group identity of the Porsche 911NFT? I don’t know, but if we succeed in building an identity, a habit of sharing values ​​in some way arises among members, a culture is born, a movement to create projects within the community is born, and the value flywheel is spontaneous. If it goes well, I also expect that it will be possible to create a membership-based independent decentralized ecosystem that creates a positive feedback loop.

At the time of writing, there is still no correct answer, so until we find the correct answer for sustainable growth with the community, “how to survive is important”.In that sense, the 2,153 ETH ( Approximately $3.4M) will be focused on how it will be used and whether it will be possible to secure sustainable operating expenses in the future.

For those who want to know more about NFT cases

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｜Text: HashHub Research
｜Editing: Coindesk JAPAN Editorial Department
｜ Top image: From Twitter