The timing of Donald Trump’s entry into the world of non-fiction publishing couldn’t have been worse. The “important announcement” that the former president was supposed to make turned out to be a set of digital trading cards that cost $99 each, which prompted widespread ridicule from late-night talk show hosts and even some Trump loyalists like Michael Flynn and Steve Bannon.
The fact that the NFT bubble has burst, according to practically every statistic, is the worst news for Trump. Digital works of art and collectibles, known as non-fungible tokens, are generally purchased with cryptocurrencies such as bitcoin. Beginning in 2020, the popularity and demand for NFT art and collecting collections skyrocketed. As celebrities started promoting digital cartoon apes and other NFT images on-air and on social media platforms, their popularity skyrocketed.
According to CryptoSlam, the total volume of NFTs traded in February was down 89% from its all-time high in January. According to Dune Analytics, the importance of trading on the NFT marketplace OpenSea is at its lowest since June 2021. A collector may purchase a Bored Ape Yacht Club NFT, the most famous collection in the universe, for the pitiful price of $80,466. This is an 81% decrease from the value it reached its highest point.
The so-called crypto winter, brought on by waning interest and general turmoil in the crypto markets, has resulted in a steep decline in the value of NFTs. According to Coinmarketcap, the spectacular fall of significant cryptocurrency exchange FTX (and its founder Sam Bankman-Fried) has been the cap to a turbulent year in the field, with the overall market value of crypto falling more than 63%.
The crypto winter is showing few signs of thawing as prices continue to tumble to new lows, and both authorities and Congress are now keeping a close eye on the cryptocurrency market.
However, it is essential to note that despite the unfortunate timing, Trump’s NFT collection has rocketed to the top of the ranking on the NFT marketplace OpenSea and has generated more than $1.4 million in revenue since it was first introduced. The Trump collection is said to be “sold out” on the Trump Digital Trading Cards website, and the floor price for a single card has jumped to $177.99, according to the analytics site CoinGecko. This price represents a significant increase.
It is unclear how much of those profits Trump will pocket from those revenues. On the Trump Card Collection website, there is a disclaimer that states the collection is “not owned, managed, or controlled” by Trump or any of his enterprises and that instead, “NFT INT LLC” has been granted a license to use Trump’s likeness. The limited liability company does not have a website; rather, it gives its address as being in a mall in Park City, Utah, right next to an Asian restaurant and a vape store.
Promotions Based On Famous People
A particular focus is being placed on celebrities who currently support cryptocurrencies. At the beginning of this month, a class-action complaint was brought against stars including Jimmy Fallon, Justin Bieber, and Serena Williams, alleging that they promoted The Bored Ape Yacht Club NFT line inappropriately. The complaint quotes an SEC statement from 2017 that issues a warning against celebrities endorsing cryptocurrencies, stating, “Celebrity advertising of cryptocurrencies is riddled with hazards.”
In October, Kim Kardashian was fined $1.26 million by the Securities and Exchange Commission for “unlawfully advocating” EthereumMax tokens. Tom Brady, Gisele Bundchen, and Steph Curry were all recently sued for advertising FTX, and in October, Kim Kardashian was also punished for promoting FTX.
This eleventh-hour entrance by Trump into the NFT competition is similar to another late attempt to jump on a market trend: exceptional purpose acquisition companies (SPACs). SPACs enable companies to go public without the burden of regulatory oversight associated with a conventional initial public offering. The value of SPACs has significantly decreased due to rising interest rates and a turbulent stock market, even though celebrities and investors flocked to the sector in 2020, driving its boom.
A particular purpose acquisition company (SPAC) by the name of Digital World Acquisition Corp. was established in October 2021, many months after the peak of the SPAC boom. This business has been attempting to merge with Trump’s social media corporation, which owns Truth Social. After the boom had already occurred, Trump made his debut in SPAC.
“When The Donald launched his SPAC in October 2021, the writing was already in blood on the wall for the SPAC bubble,” said hedge funder Benn Eifert of QVR Advisors. “When The Donald launched his SPAC in October 2021, the writing was already in blood on the wall for the SPAC bubble.” “He got into what was going to be a collapse.”
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