Donald Trump’s NFT Collection Sells Out in 12 Hours, But Who’s Buying Them?
Reading Time: 3 minutesThe remarkable collection has raised millions of dollars, but where is the money going?
In mid-December 2022, Donald Trump teased a ‘major announcement.’ His followers on Truth Social, where the teaser was posted, speculated wildly, with many guessing it would be the former President announcing key details for his 2024 presidential campaign.
On December 15, 2022, Donald Trump made his big reveal… Trump NFTs.
The announcement shocked and confused even Trump’s most ardent fans and has been ridiculed almost everywhere—but they sold out within 12 hours and could have raised more than $4 million for Trump’s personal coffers.
So, what are Trump’s NFTs, and why should you care?
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What Are Donald Trump’s Digital Trading Cards?
One of the first things to note is that Trump’s announcements never used the word ‘NFT.’ It’s not mentioned on the website either, with all phrasing centered on ‘Digital Trading Cards’ instead. The association with the haphazard, infamous world of NFTs is avoided, despite the fact they are plainly NFTs built on the Polygon blockchain.
Donald Trump’s Digital Trading Card collection comprises 45,000 NFTs, with all images relating to Donald Trump in some manner. Like many NFT collections, the images reuse certain elements across each image. For example, some images feature Trump in a trademark MAGA hat, making his ‘You’re Fired’ pose, holding a shotgun in military fatigues, and so on, on different backgrounds, color schemes, and more.
Rarity is a key part of any NFT collection, and the Trump collection is no different.
Why Has Donald Trump Released an NFT Collection?
There are a few other important details surrounding the Trump NFT collection. First up, although there is understandable speculation that the NFT collection is an underhanded method of campaign funding, the Digital Trading Card site features a disclaimer disassociating Trump’s NFTs from ‘any political campaign.’
Second, while this NFT collection is all about Donald Trump, and he undoubtedly had some involvement in its creation and development, a huge part of the Trump business plan is licensing the name. In this case, the Trump name is licensed to a company called NFT INT LLC, which isn’t owned by Trump.
Now, that’s the third consideration. While Donald Trump may not profit directly from the NFT sales, and those funds may not pass into his campaign coffers, licensing his name to the project will. There isn’t anything illegal or underhanded about that; it’s how the Trump Organization has operated for decades.
Who Is Profiting From the Trump NFTs, Then?
45,000 NFTs sold for $99 each (note the symbolic number of NFTs, by the way) equates to a cool $4.45 million. But if the Trump Organization isn’t pocketing the funds, who is?
All sales go to NFT INT LLC. Furthermore, each time a Donald Trump Digital Trading Card is sold, the company pockets 10 percent of the sale. At the time of writing, there has been an apparent 663 ETH worth of trading activity on Open Sea, one of the most popular NFT marketplaces. 663 ETH is equivalent to $846,000, meaning NFT INT LLC has made an additional $84,600 already, with trading ongoing and prices looking like they may rise.
On that, part of the scorn for the Trump NFT collection is timing. The NFT market is in the doldrums and has been for months. It’s a long way from the dizzying, insatiable NFT market of early 2022, that’s for sure.
Still, Trump’s Digital Trading Cards sold out within 12 hours, something not seen in the NFT market for a while.
Who Are Donald Trump’s Digital Trading Cards For?
Understandably, the target market for Donald Trump NFTs is Donald Trump supporters. That said, feedback among Trump supporters has been mixed, to say the least.
Each Trump NFT purchased, though, entered the buyer into a sweepstake for various extra prizes, including a gala, a Zoom call with Trump, dinner in Miami, cocktails at Mar-a-Lago, and more.
However, they’ve struck a chord in the wider NFT community. At least, they have with some users who note that the former US President is bringing more attention to NFTs than almost any other individual could.
Some NFT advocates who want to push the technology forward see Trump’s involvement in NFTs as a net positive for the space—even if the Trump NFT announcement looks like a knock-off infomercial.
Furthermore, for many, NFTs are just another commodity to trade, swap, and bargain. Each Trump Digital Trading Card was priced at $99, but they’re already being sold for more than that on Open Sea. How much of it is NFT wash trading, we don’t know, but if there is money to be made trading Trump NFTs, you bet people will do it.
Trump’s NFTs Breathe Life Into a Faltering Market
The Donald Trump Digital Trading Card NFT collection has clearly caught the imagination of users worldwide. Whether the bulk of buyers were NFT speculators and traders isn’t clear, but any NFT collection selling out after 12 hours is an impressive endeavor.
Whether the Trump NFTs hold their value after a few months is another thing. With very few NFTs holding any value after their moment in the sun wanes, one would speculatively say it’s unlikely—but much stranger things have happened.