Trump Cards: Why the Crypto World Needs to Stand Up and Heed – Ethereum (ETH/USD), Tesla (NASDAQ:TSLA)
Former president donald trump recently announced the start of its first collection of non-fungible tokens (NFT) on Social truththe social media platform he created after being banned from Twitter.
The collection, which consisted of some 45,000 “digital trading cards”, sold in 12 hours (even though they claim used unauthorized copyrighted images). Their prices and trading volume then fell.
Here’s a look at why some crypto investors and NFT enthusiasts bought into the hype anyway.
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What the Trump NFT Collection Did Right
As part of the launch, Trump guaranteed that NFT buyers would be participated in a “Trump Sweepstakes”.
Winners could visit Mar-a-Lago, his private club in Palm Beach, Florida. Perhaps Trump’s most vocal critics would like the opportunity to get closer to him.
And that’s one of the many reasons why the Trump Digital Trading Cards collection has garnered so much interest from investors, NFT enthusiasts, and first-time buyers alike.
At a time when NFT sales are declining month over month (OpenSea volume is down more than 95% from a 2021 high), the Trump NFT Collection — even with an offering price of $99 – had a low barrier to entry. At floor price of 0.09 ETH/USDyou could buy a digital card of Trump dressed as a sheriff, superhero, golfer and standing in front of the Statue of Liberty.
Some NFTs, like #4128 which is autographed by Trump, showed prices as high as 4,500 ETH on the OpenSea NFT platform.
With NFTs being awarded automatically, there was an added element of excitement that apparently contributed to its success.
While most designs are repeated with slight color variations, shoppers have been drawn to the option of owning the custom pieces, which presumably retail for well over $99.
Trump licensed a company called NFT INT to develop and market the digital portraits (he reportedly has no majority stake or even ownership in the company).
NFT INT, for its part, will receive 10% of the proceeds from the sale, while the rest will likely end up in Trump’s account.
It’s a rather unique approach that was taken by former POTUS, himself ardent critic of the crypto space.
Can the creators of NFT emulate the Trump formula?
It remains to be seen if Trump decides to launch more NFT collections in the future. Still, it provided NFT creators with a plan to market their next NFT projects.
Celebrity portrayals on affordable NFTs, especially when they give shoppers the chance to meet their favorite personalities, are exactly what sets the Trump NFT collection apart from the rest.
Trump’s larger-than-life personality, coupled with his dedicated following, is why his NFTs have bucked the current downtrend to trade as low as $650 in the days following the initial launch.
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For the majority of 2022, NFT sales have not only fallen around 90% from August 2021, but the average sales value has fallen to around $100 from levels as high as around 2,100 recorded. in February 2022.
By studying the NFT market and pricing their NFTs in line with current trends, NFT INT may have shown what it takes to pave the way for mass adoption of NFTs – an important lesson for budding NFT creators.
Maybe Trump’s NFT success will inspire other figures – like Tesla TSLA chief Elon Musk — follow the movement and pull the NFT market out of its current slump.
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Image via Shutterstock
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