Trump Card: Why the Crypto World Needs to Stand Up and Take Notice – Ethereum (ETH/USD), Tesla (NASDAQ:TSLA)
Former president Donald Trump recently announced the launch of its first non-fungible token (NFT) collection on Truth Socialthe social media platform he created after being banned from Twitter.
The collection, which consisted of around 45,000 “digital trading cards”, sold out in 12 hours (even though they allegedly used unauthorized copyrighted images). Their prices and trading volume subsequently fell.
Here’s a look at why some crypto investors and NFT enthusiasts bought into the hype anyway.
Also read: Brazil OK’s bill on crypto regulation legitimizes BTC as a payment and investment asset
What the Trump NFT Collection got right
As part of the launch, Trump guaranteed that NFT buyers would be entered into a “Trump Sweepstakes”.
The winners would get to visit Mar-a-Lago, his private club in Palm Beach, Florida. Perhaps Trump’s most vocal critics will have the opportunity to get up close and personal with him.
And that’s one of the many reasons why the Trump Digital Trading Cards collection generated so much interest from investors, NFT enthusiasts and first-time buyers.
At a time when NFT sales are declining month-on-month (OpenSea volume fell over 95% from a peak in 2021), the Trump NFT collection – even with an offer price of $99 – had a low barrier to entry. At a floor price of 0.09 ETH/USDyou can buy a digital card of Trump dressed as a sheriff, superhero, golfer and standing in front of the Statue of Liberty.
Some NFTs, such as #4128 signed by Trump, quoted prices as high as 4500 ETH on NFT platform OpenSea.
With NFTs being awarded automatically, there was an added element of excitement that apparently contributed to the success.
While most of the designs are repeated with slight color variations, buyers were lured in by the chance to own custom pieces, which presumably would retail for much more than $99.
Trump licensed a company called NFT INT to develop and market the digital portraits (he reportedly has no controlling stake or ownership in the firm).
NFT INT, for its part, will receive 10% of the sale proceeds, while the rest will probably end up in Trump’s account.
This is a rather unique approach that has been adopted by the former POTUS, himself a strong critic of the crypto space.
Can NFT Makers Emulate the Trump Formula?
Whether Trump decides to launch more NFT collections in the future remains to be seen. Nevertheless, he has given NFT creators a plan to market their next NFT projects.
Celebrity portrayals 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 larger-than-life personality, combined with his dedicated following, explains why his NFTs bucked the current bearish trend to trade as high as $650 in the days following their initial launch.
See also: DeSantis favored Trump by a wide margin, poll shows
To revive hope?
For most of 2022, NFT sales have not only fallen by ~90% from August 2021, but the average sales value had dropped to ~$100 from levels as high as ~2100 recorded in February 2022.
By studying the NFT market and pricing 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 NFTs will inspire other personalities – like Tesla TSLA boss Elon Musk — to follow and start the NFT market out of the current decline.
Next: Will Binance Succumb to Crypto Market Fears?
Image via Shutterstock
