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GQ tries to keep NFT buyers happy when resale prices drop
Fashion magazine GQ’s entry into Web3 is the NFT version of wearing socks with sandals. The old brand was unable to sell out the project and closed the mint on Wednesday morning. Now they are trying to bring value to their holders. What is the GQ NFT collection?
What is the GQ NFT collection?
Titled “GQ3 Issue 001: Change is Good (by GQ Magazine)”, the collection features artwork from Chuck Anderson, Kelsey Niziolek, Serwah Attafuah and the pseudonymous REO. Each artist created more than 100 properties to form 1,661 unique, generative pieces for the project. The collection size of 1661 is a nod to GQ’s 66th anniversary this year.
The NFTs themselves are utility passes to GQ’s Web3 ecosystem called GQ3. Holders receive magazine subscriptions, merchandise, access to GQ events and priority access to future NFT releases. GQ priced the coin at 0.1957 per item and only managed to sell 1,060 pieces, leaving 36% of the collection unsold.
The price of OpenSea is currently at 0.11 eth with a standing offer of 0.085 eth. However, given the recent price drop for Ethereum, buyers are down to a USD value of $155 from the mint price of about $303.
How will GQ provide value to its owners?
The GQ3 team announced that they will distribute the remaining supply to randomly selected holders as a customer loyalty reward. They will also keep a portion of the unsold NFTs for “community and promotion”. Community responses were mixed.
This decision is a departure from another recent embarrassing NFT decline turned Web3 comeback story. In January, luxury carmaker Porsche raised eyebrows by charging an exorbitant .911 eth to grace its 7,500-piece collection. Embarrassingly, they were only able to sell 2363 items after backlash from the NFT community.
In response, Porsche burned the unsold portion of their supply. As a result, the floor price of the pool has skyrocketed and has remained above 2 eth since the decision.
Will GQ be able to pull their own Web3 miracle and bring the Change is Good NFT collection back into fashion Time will tell!
