Are NFTs sneaking into American homes with their utility as political fundraisers? If so, Trump already started his 2024 campaign
Dive into Political NFTs in America while the land of the free celebrates another year of independence. Trump and Melania NFTs have already surpassed $30 million in trading volume, and they aren’t the only political figures making waves in Web3. This report sheds light on political-themed collectibles in America driving NFT adoption amidst an NFT bear market.
This is an executive report providing readers with a high-level perspective of generative NFT collections. The report focuses on trading metrics, including sales activity, price analysis, and distribution metrics like Unique Active Wallets and Whale Concentration Index. It additionally dives into collectors’ behavioral patterns and social and technical overviews of the American political scene.
- Non-fungible tokens (NFTs) are emerging as a popular tool for political propaganda, with Trump’s collections leading the trend with over $30 million in total sales volume and establishing his popularity on Twitter.
- Trump Digital Trading Cards, launched in December 2022, has a floor price appreciation of 129%. However, his second collection’s floor price, launched in April 2023, depreciated by 51.8%.
- News about Trump’s arrest decreased sales by 90%, while news of his return to Facebook and Twitter increased sales by 503%.
- Trump’s collections have a very low whale concentration, around 4%, and unique holders ratio of 31% and 15%, respectively.
Table of Contents
- How the US presidential race embraced NFTs
- Trump NFTs Trading Overview
- A whole new angle on NFT Utility
- Social awareness and engagement
- Whale wallet analysis
How the US presidential race embraced NFTs
As the 2024 US elections draw near, NFTs have emerged as a popular tool for presidential candidates, with former president Donald Trump being a trendsetter. Trump unveiled the Trump Digital Trading Cards project in December 2022, just a month after his announcement to run for office again. This project featured a collection of 45,000 items that sold out in 12 hours, amassing an impressive $4.45 million from the initial sales.
The success continued into the secondary market, with sales reaching nearly $12 million within the project’s first week. Despite the initial triumph, a second collection of NFTs launched by Trump in April 2023 didn’t replicate the financial success of the first, earning about $1.5 million from secondary sales in the first week. Interestingly, the launch of The 1776 Collection by his wife Melania Trump, significantly boosted her husband’s main collection sales, causing a 300% surge on its release day.
The Trump family’s association with NFTs has led to a cumulative total of over $30 million in total sales volume so far, notwithstanding market volatility and mixed sentiments from the NFT community and the general public.
Meanwhile, other candidates like Miami Mayor Francis Suarez and Democrat Robert Kennedy Jr. are leveraging the power of Web3 and cryptocurrencies in their campaigns. They do this by openly announcing their support for this rising technology. Even as President Biden frames crypto as a national security issue, digital assets like NFTs are becoming popular propaganda tools. This trend is broadening the discourse on cryptocurrencies and Web3, reaching American and global households – whether or not they’re into crypto.
Trump NFTs Trading Overview
Trump Digital Trading Card – Floor price +159%
- Blockchain: Polygon
- Launch date: 15 December 2022
- Edition size: 45,000
- Traits: 9
- Floor price at mint: 0.07 WETH ($99)
Trump Digital Trading Card Series 2 – Floor price -51.8%
- Blockchain: Polygon
- Launch date: 18 April 2023
- Edition size: 47,000
- Traits: 9
- Floor price at mint: 0.04 WETH ($99)
Trump NFTs and his presidential odds
The secondary sales of Trump’s NFTs also exhibit an intriguing relationship with political news. Analysis of these sales suggests that whenever Trump seems to get further away from the presidency, his NFTs sales dunk.
For instance, a 55% drop in sales occurred on 5 April, when Trump faced court for his New York criminal case. On 14 June, news about Trump’s arrest caused a 90% drop in sales.
On the other hand, whenever news surrounding the Trumps is positive, sales and volume increase. The day Melania announced her latest collection, 29 June, caused a 266% increase in sales of her husband’s collections. On 18 January, when news came that he would return to Facebook and Twitter, Trump NFTs sales rose by an impressive 503%.
Therefore, monitoring news surrounding the Trumps could serve as a crucial strategy for potential investors in these political NFTs.
A whole new angle on NFT Utility
While first-time buyers of these NFTs did receive tangible rewards like opportunities for Zoom calls, 1-on-1 dinners with Trump himself, and other interactive experiences, the true essence of these collections lies elsewhere.
These NFTs serve as powerful symbols of political support, allowing individuals to champion their preferred candidate in an innovative way. Indeed, Trump remains a significant presence in American politics, especially within the Republican party. His strong grassroots support base has positioned him as a potential frontrunner for the Republican presidential nominee in 2024.
The act of acquiring an NFT from Trump’s collection is less about traditional perks and more about making a statement of allegiance to a political figure and a cause. In this context, Trump’s collections expand the realm of NFT utility, showcasing the transformative potential of revolutionizing not just art or entertainment but political campaigning as well.
An even stronger example of NFTs going political is the Ukrainian government’s NFT sales in March 2022. The collection gathered over $600K from supporters to aid the country during the war against Russia, using collectibles as a means of charity.
Social awareness and engagement
Even in a digital realm dominated by major social media platforms, the Trump NFT collections manage to carve out their unique space. Although Trump himself no longer leverages Twitter, his NFT collection does – through the @CollectTrump Twitter page.
Despite the former president’s transition to his own platform, Truth Social, the Collect Trump Twitter page has been pivotal in promoting the NFT and the candidate’s presence in Musk’s realm. With only approximately 10,000 followers, the page experienced an 80% growth in the past 30 days, according to SocialBlade – coinciding with the launch of Melania’s latest collection.
Whale wallet analysis
As per the data from DappRadar, the Trump NFT collection shows a wide distribution of ownership. The concentration of “whales” – addresses that own a large number of tokens – is remarkably low for Trump’s NFT collections, sitting at just 4.12% for the first one and 4.87% for the second.
One such whale owns over 992 Trump NFTs (500 from S1 and 492 from S2), boasting a Trump-only $84.52k worth portfolio at the time of writing. You can explore Trump NFT owners’ digital wallets using the DappRadar Portfolio Tracker.
Nevertheless, both collections demonstrate a diverse holder base, suggesting a broad and genuine array of Trump supporters rather than a small group of wealthy individuals or organizations.
However great a $30 million trading volume may be, the monetary profits from these sales don’t fully accrue to the Trumps. In fact, the actual beneficiaries are likely to be the project owners and creators, who stand to gain from the 10% royalty fees associated with these sales.
“NO. These Digital Trading Cards are not political and have nothing to do with any political campaign. NFT INT LLC is not owned, managed or controlled by Donald J. Trump, The Trump Organization, CIC Digital LLC or any of their respective principals or affiliates. NFT INT LLC uses Donald J. Trump’s name, likeness and image under paid license from CIC Digital LLC, which license may be terminated or revoked according to its terms.”Collect Trump Cards official statement
Yet, the Trump family’s venture into the NFT arena isn’t without its benefits. Rather than direct financial gain, their true reward seems to stem from the publicity and community engagement they’ve fostered. Their association with NFTs, a rapidly growing digital trend, has ensured their continued relevance and allowed them to foster a sense of community among their supporters.
The Trumps’ supporters not only financially support these endeavors by purchasing the NFTs but also achieve a sense of unity and involvement in a shared cause. In effect, the Trumps have harnessed NFTs as a focal point for discussion and as a rallying point, crafting a digital space for their followers. This novel approach to community building could potentially serve as a model for other political figures aiming to leverage the opportunities offered by Web3 technologies in their campaigns.
The embrace of web3 technologies by political figures continues to transform traditional campaign strategies. The Trump NFT collections, backed by a solid supporter base, offer an innovative approach to fundraising, community engagement, and expressing political allegiance. They add up to the NFT utility as we know it, serving as powerful political tools.
The social media engagement surrounding these collections demonstrates the potency of NFTs as a source of public discussion. The surge in sales corresponding to trending political news underscores the interconnectedness of politics and this digital realm. Furthermore, the distribution of these NFTs across a broad array of holders, rather than being concentrated among a few whales, suggests that these tokens have indeed permeated into the homes of many American supporters.
In conclusion, the integration of NFTs into political environments offers an exciting and transformative possibility for the future of both politics and blockchain technology.