Why, Porsche?

Why, Porsche?

How does a luxury automaker, synonymous with high-performance & excellence, completely miss the mark?

Porsche is widely considered one of the very best in the auto industry. They’ve been at the forefront of engineering & craftsmanship, and are certainly a status symbol for those who care for the prestige behind the name. Speaking?of names: Jerry Seinfeld, Ice T, Miley Cyrus, Eminem, Kendall Jenner, Nicholas Cage, Kristen Stewart, Patrick Dempsey, Reese Witherspoon, and?many many other celebrities?have this in common — they own (at least one) Porsche.

Their reputation precedes them, which helped to fuel hype and speculation around their debut in Web3 under the handle?@eth_porsche. Admittedly, they started off strong, leaning into a bit of mysterious hype. This story doesn’t have much of a happy ending for Porsche however. Let’s break down what happened, and is still continuing to happen.

Why?

More than just a question repeated by toddlers everywhere, the “why” behind an idea is a critical foundational block to building. I’m no Simon Sinek, but I’ve learned over the years that defining the “why” behind your idea leads to building a really strong “what.”

So, let’s start with “why.”

Why?.911E?

We get it. From the outside looking in, it’s hard to look at this space and not see opportunity to make $$$. Which of us didn’t jump into web3 with that same hope to make some risky investments that eventually pay off?

If ETH_Porsche was on track to mint out (at the time of writing this, they’ve just broken 1,200 NFTs minted out of a total 7500) they’d bring in just over 6,800 ETH. At today’s ETH price, that’s over $10,000,000 USD. But for a major auto brand, that can’t be the reason they are making this move… can it?

Sure, it’s a cute nod to the?Porsche 911, but that’s just not a very strong why for your first dance in Web3.

If their why was driven by potential revenue, it’s also the why behind their flailing attempt through this minting process. There’s one thing that the bear market has taught us in 2022: to be hyper-aware of old brands entering Web3 in order to extract value. In today’s market, $10m extracted out of the ecosystem, with no plans of adding value to Web3 as a whole is what we call a lose-lose situation.

Why Web3?

I debated which “why” question to put first. This one is certainly more important, but I have a bit less to say about it. Porsche hasn’t convinced us that they have a plan for Web3. I believe it’s because they might not actually have a plan in place.

The obvious play for Porsche was to utilize NFTs to bring utility and access to things like membership perks, IRL experiences, early access, and other “exclusives.” That’s their market. You don’t drive a Porsche because it’s common. In fact, it’s quite the opposite.

In 2021, Ford Motor Company sold over?1.7 million vehicles?in the US. Porsche sold just over?70,000.?Their niche market is small, but their audience really likes exclusivity.

So what did they offer?exactly?

Well if you read between the lines — nothing.

At the risk of sounding like a broken record: no plans of adding value to Web3 as a whole is what we call a lose-lose situation.

Why now?

Timing is everything. Sure, there are some signals that the bear market is letting up a little bit, but none of us are under the illusion that we have entered a new bull market. To me, launching a 7,500 NFT collection at nearly a nearly 1E mint price feels like the folks making decisions aren’t part of the ecosystem at all.

Perhaps the price point is meant to reflect the exclusivity of the brand. As a marketer, I can align myself with that train of thought. This isn’t the NFT for the masses. It’s for a small segment of the Web3 population that intersects with a passion for luxury vehicles that aren’t Lambos. (insert wink here)

Sarcasm aside, timing is critical in Web3, and the timing of this premium luxury NFT just?felt off.

Could Porsche have some tricks up their sleeves? Yes, of course. Don’t reveal all your cards as they say. However, when you’re asking for?.911E per NFT in a collection of 7,500 total, you might need to show just a few cards. Otherwise, NFT buyers, collectors, and flippers alike will all approach with extreme skepticism. Porsche did a good job of leaning into their legacy brand, and a really poor job of convincing us that their “why” was one worth believing in.

As consequence, ETH_Porsche has struggled to hit the 20% minted mark before their public mint tomorrow, and their floor price has barely held above the?.911E mark.

If you don’t have a strong “why”, we’ll likely continue to be pretty bearish on your attempts to “to engage with the Web3 community on a long-term basis.”