Former president Donald Trump recently announced the launch of its first collection of non-fungible tokens (NFTs) on Social truththe social media platform he created after being banned from Twitter.
The collection, which consisted of approximately 45,000 “digital trading cards,” sold out in 12 hours (even though they allegedly used unauthorized copyrighted images). Their prices and trading volume subsequently plummeted.
Here’s a look at why some cryptocurrency investors and NFT enthusiasts have bought into the hype anyway.
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What Trump’s NFT Collection Worked
As part of the rollout, Trump guaranteed that NFT buyers would be entered into a “Trump lottery.”
Winners could have visited Mar-a-Lago, his private club in Palm Beach, Florida. Perhaps Trump’s loudest critics would like the opportunity to get up close and personal with him.
And that’s one of the many reasons why the Trump Digital Trading Card Collection has generated so much interest from investors, NFT enthusiasts, and first-time buyers.
At a time when NFT sales are declining month-over-month (OpenSea volume has plunged more than 95% from a peak in 2021), the Trump NFT Collection, even with an offering price of $99, it had a low barrier to entry. At a minimum price of 0.09 ETH/USDyou could purchase a digital card of Trump dressed as a sheriff, superhero, golfer, and standing in front of the Statue of Liberty.
Some NFTs, such as the Trump-signed number 4128, quoted prices up to 4,500 ETH on the OpenSea NFT platform.
With the automatic awarding of NFTs, there was an additional element of enthusiasm that seemed to be instrumental in its success.
While most of the designs are repeated with slight color variations, buyers have been drawn to the ability to own the custom-made pieces, which would presumably trade for much more than $99.
Trump has licensed a company called NFT INT to develop and market the digital portraits (he reportedly has no controlling stake or even ownership in the company).
NFT INT for their part will receive 10% of the proceeds from the sale, with the rest likely going to Trump’s account.
This is a rather unique approach that has been taken by the former POTUS, himself a staunch critic of the crypto space.
Can NFT Creators Mimic Trump’s Formula?
Whether Trump decides to roll out more NFT collections in the future remains to be seen. However, he has provided the NFT creators with a blueprint to commercialize their upcoming NFT projects.
Celebrity representations on affordable NFTs, especially when they offer buyers the chance to meet their favorite personalities, is exactly what sets the Trump NFT collection apart from the rest.
Trump’s over-the-top persona, coupled with his devoted following, explains why his NFTs bucked the current downtrend to trade as high as $650 in the days following the initial launch.
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For most of 2022, NFT sales have not only plunged ~90% since August 2021, but the average value of sales has dropped to ~$100 from the ~2,100 levels recorded in February 2022.
By studying the NFT market and rating their NFTs on par with current trends, NFT INT may have shown what it takes to pave the way for mass NFT adoption – an important lesson for budding NFT creators.
Perhaps the success of Trump’s NFTs will inspire other personalities, such as Tesla TSLA boss Elon Musk – to follow suit and jumpstart the NFT market from its current slump.
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