GM Readers!📪 It's BitDegree Insider, and can you smell that sweet Friday aroma?
⭐️Today's selection:
- 🏎 Porsche NFTs Situation
- 🚀Amazon To Enter Crypto
- 👌Selected Meme of The Day
- 📰Bite-Sized News
PORSCHE NFTs SITUATION
Before we push the accelerator... Take a look at the Crypto Fear & Greed Index above. It calls for a celebration. For the first time in 10 months, the index is on the 'Greed' side. The market is smiling today!
But alright. 3...2...1... Go. Time for the main story.
On January 23, the German car concern Porsche launched its first NFT collection. But by the end of that day, it became clear to everyone that the project had failed.
The minimum price of tokens on the secondary market fell to 0.89 ETH, which is below the cost of a mint of 0.911 ETH, which they set up as the default one. For Porscheish symbolic reasons.
The collection included a total of 7,500 NFTs. The project was meant to perpetuate the iconic 911 model and serve as the starting point for the company's journey into Web 3.
Each user was supposed to be able to mint up to three tokens at a price of 0.911 ETH apiece (~$1400). But just a few hours after the launch of the sale, demand dropped to almost nothing.
By the end of the day, the organizers managed to sell just over 1100 NFTs, about 15% of the total amount.
On the "secondary" market, the threshold value of tokens fell below the value of the mint. And this meant that the demand was up to no good, as it was certainly doomed to fall further.
This failure is due to overpricing and a frankly flawed sales strategy for the collection.
One of the reasons for it was the fact that there was no preparatory work to create a community.
As noted by the crypto community on Twitter: Porsche went "the way of the Web 2", which, quite obviously, did not work within the Web 3 framework.
This is a common mistake of big brands and media personalities who are trying to make money with NFTs.
The way of web2 can be characterized by the fact that as soon as the price of 0.911 (~$1400) was announced, people were not satisfied. It's the bear market after all!
People suggested changing the price to 0.0911 ETH which would be at least 10 times cheaper (~$140).
But they didn't change the price. Here's the math behind their prices:
7500NFTs x $1400 = $10,500,000. So, they wanted to make over $10M by offering some 'mOneY cAn'T bUy' experiences. Here's their promise list:
Despite the high price, some buyers still believed in the brand and 2363 NFTs were sold out of the original collection of 7500.
The team behind the project had to react. What they came up with was the right call. The sale was ultimately stopped on January 25th. It worked.
Interestingly, as soon as the minting of NFTs was limited, interest in the Porsche NFTs increased and the price rose by 100%, currently sitting at around 2ETH.
TL;DR: Porsche launched their NFT collection. It was a failure because of the unreasonably high minting price which stood at 0.911 ETH. Then they stopped the NFT sale. This prompted people to give attention to the collection, thus buying more, and increasing its value.
AMAZON TO ENTER CRYPTO IN SPRING 2023
According to multiple sources, Amazon, one of the world's largest companies, is planning to enter the crypto industry in spring 2023.
The company is rumored to be introducing an NFT trading platform, with a focus on blockchain-based gaming and related NFT applications.
This could be a game-changer for the NFT market, as Amazon's customer base and prominence could make them a major competitor for current marketplaces like OpenSea, Blur and others.
Amazon CEO Andy Jassy has acknowledged that the cryptocurrency market is growing, and that the company may decide in the future to introduce non-interchangeable tokens.
However, he has also stated that the company is not yet ready to introduce digital money payments into their services.
Despite the potential for Amazon's entry into the crypto space to be a bullish sign for the market, the reaction so far has been somewhat indifferent.
One possible explanation for this could be the past efforts by Coinbase to create an NFT marketplace.
The attempt was a failure which led to the loss of $600M and the departure of the executive responsible for the development.
It's important to note that Amazon has not yet confirmed these rumors, and an official announcement is expected in April.
The company's CEO Andy Jassy has denied owning any BTC or NFTs.
TL;DR: The commerce giant Amazon may be entering the crypto industry as soon as the spring of 2023. It's not yet confirmed, but it's rumored that it may be a brand new NFT trading platform, with a focus on blockchain-based gaming and related NFT applications
SELECTED MEME OF THE DAY
BITE-SIZED NEWS
- Investors Accuse Argo Blockchain of Misleading Them Prior to IPO. Misleading leads to mistrust.
- SEC Cracks Down on Investment Advisers for Crypto Custody Compliance. Investment advisers will receive a word of advice.
- Law Enforcement Groups Work Hand in Hand to Dismantle Ransomware Group Hive. If only they went after the right targets more often.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.