Former US President Donald Trump launched his non-fungible token (NFT) collection of digital trading cards, which sold out in less than a day. The launch attracted massive attention, including from Emmy-winning comedy Saturday Night Live (SNL).
The collection of 45,000 digital cards netted Trump close to $ 4.5 million at an issue price of $99. The digital collectibles depict Trump in various poses, such as a Nascar driver, a superhero, and an astronaut.
The artwork provided fodder for the SNL skit, which also drew attention to the perception of many that NFTs are scams. This impression has come up in NFT surveys. We’ve noted that many companies using the technology now refer to them as digital collectibles rather than NFTs, perhaps to avoid the association with scams. So while some see Trump as helping NFTs to go mainstream, with the SNL skit, it might not be quite the impact desired.
Various brands, such as Starbucks, try to increase the utility of the NFTs beyond the pure collectible, and Trump is no exception. NFT collectors are automatically entered into a sweepstake for a chance to win prizes and a meet-and-greet with Trump himself. Collectors who purchase 45 NFTs gain a ticket to a dinner with the former President.
According to OpenSea, the floor price for the collection is around $346, significantly above the $99 issue price. Many collectibles allow the creator to take a cut of re-sales, usually between 5% and 10%, with Trump opting for 10%. Major collections, such as NFL All Day, only take a 5% cut.
Trump licensed the right to drop the NFTs to NFT INT LLC, part of CIC Digital. According to the New York Times, the company is run by a former Trump lawyer and assistant.
The demand for the Trump NFTs comes during a declining NFT market. Last month, Candy Digital was the latest blockchain company offering NFTs to cut its workforce. In addition, Dapper Labs, the blockchain firm behind NBA Top Shot reported a 22% cut in its staff. In July, OpenSea, the NFT marketplace, also announced a 20% reduction in its workforce, citing macroeconomic conditions.
