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Prague City Tourism’s launch of non-fungible tokens (NFTs) can be described as a tangible failure. Of over 1,300 tokens issued in late February, just nine have been purchased. The average cost of one NFT is about CZK 2,600 (converted from cryptocurrency prices).
Showcasing and helping Prague
The collection, entitled Bohemian Muse, features artwork that depicts “the bohemian soul of Prague” and the “authenticity, creativity, and unconventionality” of some people living in the capital, an official press release writes.
WHAT IS AN NFT?
An NFT is a digital asset that is unique and cannot be replaced by another identical item. It is best imagined as a one-of-a-kind trading card or a collectible item, such as a rare stamp or a piece of art. NFTs are created using blockchain technology, which means they can be verified and authenticated as original and unique.
All the NFTs – purchasable only via a cryptocurrency – feature a woman standing beside well-known Prague attractions, such as the Astronomical Clock.
Prague City Tourism released exactly 1,357 NFTs, symbolically reflecting the year in which construction started on Charles Bridge.
Would you buy a Prague NFT?
With Bohemian Muse #Token, Prague is among the first capitals to set foot in the #NFT world. Muses have inspired artists in Prague for centuries. ðŸŽ¨ðŸ–¼ï¸ Now you have a chance to get your own Bohemian Muse 🎠https://t.co/xGkDP8dWqg pic.twitter.com/1cv872msSD
— City of Prague (@PragueEU) February 28, 2023
According to the municipality of Prague’s official tourism board, proceeds from the NFTs’ sales are intended to be used for restorative work on the capital’s cultural landmarks.
First doesn't mean best
Boasting its exclusivity, the press release writes that Prague is said to be one of the “first metropolises in the world” to introduce NFTs. Prague City Tourism says that it spent about CZK 500,000 in developing and releasing the NFTs.
The organization’s spokesperson said two months ago that the campaign targets “more creditworthy clients.”
According to Prague City Tourism, “full-fledged support” and marketing online have not yet begun – potentially explaining poor sales thus far.
People in the capital may have noticed an offline campaign of sorts, with a series of street art paintings resembling the theme of a Bohemian muse displayed in underpasses in Prague 2’s Legerova Street or in Strahov (Prague 6).
A Czech survey from April 2022 found that eight in 10 respondents in the country did not know what NFTs were, and 73 percent would not pay over CZK 99 for one NFT.
Owners of the Prague NFTs can also get extra benefits, such as a visit to normally inaccessible areas of the Old Town Hall or Strahov Monastery. However, further inspection finds that such bonuses are not always included and can only be arranged after prior agreement via e-mail, CzechCrunch writes.
Poor execution
According to a consultant in the NFT realm, Julie Šislerová, the project’s execution has been its downfall (so far).
Releasing over 1,000 NFTs with the same theme at once, she explains, reduces their value and exclusivity. “If the buyer had no idea in advance how rare - and therefore valuable - the NFT would be, the collection would be much more attractive," she summarizes.
Despite a boom in 2021, global NFT sales have nosedived in the past year, with sales of the tokens declining by a seismic 83 percent year on year in 2022. Although ambitious, Prague’s release of NFTs appears both poorly implemented and ill-timed.
