By Anouk Morin, Web3 Lead Associate at Ditto
When one of the world’s best-known luxury car companies, Porsche, released its first official NFT drop in late January 2023, they expected to make waves in the Web3 space. advertised as “Bold Project” for “Virtual Pioneers”The drop enabled Porsche fans to own a unique digital edition of the iconic Porsche 911.
But the project didn’t live up to the hype—a day after launch, Porsche had sold only 25% of its 7500 NFT pieces before halting the mint and cutting the supply to 2,363 tokens.
This weak launch is not an isolated case. During the so-called “Crypto Winter”, there was increased negative pressure towards Web2 companies entering Web3. Web3 Space Called Cash Grab Speculative NFT Drops And ‘Overhyped’ Projects; And engagement with Web3 projects has reached a saturation point.
More than ever, it’s essential for traditional brands to learn how to communicate in a Web3 way to ensure that their projects will be well received by audiences. So what lessons can brands learn from Porsche’s example?
Web3 101: Understanding Space
Porsche’s weak NFT launch was due to a misunderstanding of the Web3 space. For one, NFTs were too expensive for a bear market, with one NFT listed at 0.911 ETH, equivalent to around $1500 at the time. Second, Porsche didn’t hit the right track with the Web3 space cut nft supply After only one day—this gave the impression that they miscalculated the project and didn’t do their research.
Web3 has its own rules, and companies should understand them. Before anything else, they must study the market, spot and learn. This is facilitated to a great extent by having a team of Web3 natives onboard.
Nike has been particularly successful in understanding Web3 Because He gradually expanded his footprints and studied space. In 2021, Nike acquired RTFKT, a Web3 company that manufactures fashion collectibles, loading its staff with Web3 original employees. He gained a lot of knowledge before launching his own marketplace .SWOOSH in 2022, which has been very well received by the press and community.
The world of Web3 is complex and nuanced, and it can be difficult to grasp at first—traditional brands don’t need to be perfect! But partnering with well-known builders and members of the space will let audiences know that the project is backed by research, intent and a real need to add value.
Reaching Your Audience the Web3 Way
Whereas Web2 communication is defined by a singular, brand-to-consumer relationship, Web3’s ethos can be summarized by one core principle: building a community,
The crypto community on Twitter pointed out that Porsche’s NFT initiative seemed rushed and poorly planned, They neither worked on creating space for their users nor communicate with them throughout the project. They quickly abandoned their Discord servers—one of the main methods they chose to communicate—which led the community to view the project as opportunistic.
Building a Web3 community takes time and trust, and should be done slowly by building an authentic presence on social media. Companies need to communicate directly with potential community members, and give them space to interact with the project. They should host Twitter space and conduct Q&A sessions to exchange updates and views. To deepen community engagement, they may offer special perks, admission passes to events, or even exclusive memberships.
Acclaimed Web3 project is the key partnership, Web2 companies think that the power of their brand name will be enough to drive the success of their projects, but in Web3 success depends on building a sustained, active, and authentic community.
Web3 isn’t a trend, it’s a commitment
During the bull market, many traditional companies entered Web3 to make quick money. This has inevitably led to an explosion of ‘web3’ projects, over-saturating the market, and people losing interest over time.
companies need to provide value and utility, This is where Porsche made a mistake; Their first NFT drop offered no real benefit to buyers other than a digital version of 911. A lot has changed during the bear market and consumers want NFTs that hold true value. For example, we have seen the rise of phygital NFTs and unlockables, which allow users to connect real-world products with the digital world, creating more concrete use cases in the space.
Companies need to ask themselves ‘why’ and ‘what’. Why is Web3 the right path for our project?” and “What value are we bringing to the table? Web3 is a means, not an end. Companies shouldn’t rely solely on it to make money – Web3 through Can see right – it just has to be a new medium of expression.
For many artists, investors, fans and collectors, Web3 isn’t just a technology – it’s a way for them to find and grow a community of like-minded individuals. All they ask companies to do is believe in the values of Web3 as much as they do, and be partners in building the space. More than just a buzzword, Web3 is about building a long-term digital revolution. There is a lot to be learned from companies that understand this.
The views and opinions expressed here are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.