Cointime

Download App
iOS & Android

Trump’s NFT Collection Sold Out in Seconds, What the NFT Market Lacks Is the Support of Consensus

Validated Venture

Trump posted on his social media platform Truth Social on the 14th that “America needs a superhero”. He also teased that he would make a “big announcement” on the 15th local time.

The picture above is a picture of Trump’s post at the time, in which he stood in front of Trump Tower and posed a cool Superman-like motion, wearing a suit, his hands tore open the shirt inside the suit to reveal red tights with a letter “T” representing Trump printed on it, and his eyes then emitted laser beams.

I believe we are very familiar with this image, except that we have the impression of a man with an “S” on his chest, symbolizing: “superman”, apparently his “T” symbolizes himself.

To cut to the chase, the “big news” for Trump is the release of the NFT with his personal image as the IP, and although this act was mocked and questioned by the entire Internet at the beginning of the NFT launch, it was announced to be sold out within a day of the launch. Trading volume skyrocketed after the launch, with a total value of 6,732 ETH as of Tuesday afternoon. The project has now risen to Top 1 on the OpenSea.

Trump NFT sales boom and the current depression of the NFT market formed a stark contrast, since May 2022, the average daily volume of NFT fell sharply, all kinds of popular NFT floor price fell to half of the high price, the lack of funds led to the weakening of NFT liquidity, NFT subject matter speculation into a weak cycle and other issues may have led to the current state of market downturn.

As of the third quarter of 2022, NFT average daily trading volume has remained at only about $22 million, a 97.8% decline since the peak of $1 billion in volume, and NFT hype appears to be gradually decreasing.

While some have suggested that this change is conducive to people thinking about the crypto works copyright trade itself that NFT brings, and focusing on the value of the artwork itself. But this is only self-congratulatory, NFT fever is extremely rapid decline is an indisputable fact.

What has happened to the NFT market today, compared to its peak in 2021, the year of the NFT?

Perhaps we can find the answer from Trump’s NFT.

The explosion of Trump NFT on one hand is Trump’s own IP plus, as the former president of the United States, comes with a huge flow and has been active in the social network after the failed campaign, can be said to be a natural big IP.

Secondly, the Trump crypto trading card NFT collection is minted on the Polygon blockchain, with a total of 45,000 NFTs initially created at a starting price of $99 per piece, and the purchase of 45 crypto trading cards will result in a ticket to dinner with Trump.

Dinner with Trump is supporting the consensus on the value behind Trump’s NFT success.

Just as Warren Buffett’s lunch was auctioned at an astronomical price, Trump’s dinner, one of the leading public figures in the political and business world, undoubtedly also has a very high value, which is recognized by all and forms a consensus value, such a consensus value gives Trump NFT a strong vitality.

Let’s come back to the NFT market, why is the NFT market booming in 2021, because when NFT first emerged, it was all well-known IP for NFT conversion, looking back at 2021, we can see these.

Five words of the founder of Twitter fetching $2.5 million.

Crypto artist Beeple’s crypto work “First 5000 Days” sold for $69 million on Christie’s Single Lot Online.

Sun Yuchen’s first NFT avatar of his life for a whopping $10.5 million.

NBA star Stephen Curry purchased Bored Ape Yacht Club’s (BAYC) NFT piece for 55 ETH (about $180,000) and used it as his Twitter avatar.

Whether it is the founder of Twitter or Beeple or NBA star Stephen Curry himself are huge IPs with their own traffic, in other words they all come with their own consensus value, and the consensus value brought by these people’s IPs gives the market confidence.

With the explosion of the NFT market, the NFT market showed a state of wild growth, countless NFT platform emerged, without any consensus to support the issue of tens of millions of NFT, these no consensus value of NFT in the NFT market explosion in the early due to the influx of a large number of users can still have a good user base.

But when the market is saturated, no consensus value support is like a house without a foundation, can only collapse and fall below the issue price, as more and more small NFT fell below the issue price, the market for NFT confidence in time and again melted, the heaviest is the continued downturn in the situation.

Therefore, the continued downturn in the NFT market in 2022 is the reason for the lack of consensus value base for wild growth.

NFT has a very broad application prospect, and to get out of the downturn and go farther, we must break away from the system of “issuing NFT before giving value” which puts the cart before the horse.

NFT transformation of items with consensus value base is the virtuous path to sustainable development.

Consensus value-based items include, but are not limited to

Artworks: recognized (consensus) artworks e.g. paintings, music, sculptures, etc.

Valuable IP: film and television images, celebrity IP, etc.

Virtual goods: game props, animation props and other virtual goods with real value.

Now the NFT market is definitely a bubble, now is the process of bubble bursting. After the bubble bursts, more people will think about the future of NFT, and more people will realize that the only way to develop value is to have value.

Throughout the history of evolution, combined with the current stage of development of NFT track, industry layout and market performance, we can hold unlimited imagination and thinking to wait and see.

Comments

All Comments

Recommended for you

  • U.S. July Nonfarm Payrolls Fall by 23,000, Missing Market Expectations

    On August 7, U.S. nonfarm payrolls decreased by 23,000 in July, compared with market expectations of an increase of 80,000, and the previous value was an increase of 57,000.

  • US May and June Nonfarm Payroll Additions Revised Down by 103,000 Combined

    On August 7, the US Bureau of Labor Statistics: May nonfarm payroll additions were revised down from 129,000 to 63,000; June nonfarm payroll additions were revised down from 57,000 to 20,000. After the revisions, the combined additions for May and June were 103,000 lower than previously reported.

  • U.S. Rate Futures Market Sees Lower Odds of Fed September Hike

    On August 7, the probability of a Fed rate hike in September as priced by U.S. interest rate futures declined.

  • New York Gold Futures Top $4,400 per Ounce

    New York gold futures topped $4,400 per ounce, up 2.36% on the day.

  • Japan Finance Minister: FX Market Affected by Moves Not Driven by Actual Demand

    Japanese Finance Minister Satsuki Katayama said she and U.S. Treasury Secretary Bessent agreed that the foreign exchange market has been affected by moves not driven by actual demand.

  • BTC Breaks Through $65,000

    Market data shows BTC has broken through $65,000, currently reported at $65,007.44, with a 24-hour increase of 0.6%. The market is highly volatile, please exercise risk control.

  • Brent Crude Drops 2.00% Intraday to $81.07/Barrel

    Brent crude oil fell 2.00% during the day, now at $81.07 per barrel. (Jin Shi)

  • Trump: Data Centers May Be More Important Than Oil

    August 7 news, U.S. President Trump said in an interview with Punchbowl News, "I saw the other day that Texas seems to be opposed to building data centers. I think that's a mistake. I'm not taking a position—I just think it's a mistake, because there are other communities that want to build data centers. When a community is willing to accept data centers, it means a lot of money will flow into that community. I don't think they're ugly. Some of the data centers I've seen are the most incredible buildings I've ever seen. They are very important to the economy. If Texas says no to data centers, that's a mistake, because data centers may be more important than oil."

  • Trump to Meet with Mining Executives

    On August 7, according to CCTV International News, US President Trump will convene executives from some of the world's largest mining companies at the US State Department on August 7 local time, in an effort to take action to 'secure critical mineral supplies for the US and its allies.' Reuters reported that the US urgently needs critical minerals to replenish weapons inventories depleted during the war against Iran. During the more than five-month war with Iran, the US military expended large quantities of precision-guided missiles and air defense interceptors. US defense officials and lawmakers have warned that given existing production capacity constraints, replenishing some stockpiles could take years—although the Trump administration has denied reports of a so-called 'severe shortage of ammunition stockpiles.' According to Pentagon officials and defense companies, supplies of minerals such as rare earths, tungsten, germanium, and scandium are essential for manufacturing precision-guided missiles, fighter jets, armored vehicles, infrared sensors, and other advanced weapons systems. Expected attendees include industry giants such as global mining giant Rio Tinto Group, Australia's BHP, US Freeport-McMoRan, US Mountain Pass Materials, US Rare Earths, US Energy Fuels, and Canada's Metals Company. According to sources, the Trump administration plans to announce multiple deals and memorandums of understanding.

  • US Regulators Systematically Review Chinese AI Firms' Third-Country Computing Power Leasing

    August 7 news, according to Bloomberg, people familiar with the matter revealed that the U.S. government department responsible for investigating chip export control violations is reviewing Chinese AI companies' leasing of computing power in third countries to obtain Nvidia advanced chips.