Prague's first-ever NFT sale off to an embarrassing start

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).

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.

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.

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. 

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).

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. 

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.