Donald Trump has once again turned to his loyal supporters with the launch of a new collection of digital trading cards, a venture reminiscent of his previous forays into the world of NFTs. Announced on his Truth Social platform, the cards are priced at $99 each, with an enticing offer that includes a physical card containing a piece of the suit he wore during his debate with Joe Biden for those who purchase 15 or more.
This is not the former U.S. president’s first venture into the realm of digital collectibles. His original collection of trading cards in 2022 sold out within hours, netting a staggering $4.5 million. However, the current landscape for non-fungible tokens (NFTs) has changed dramatically, leading experts to question whether Trump’s latest sales tactic can replicate past success.
While the former president confidently declares himself “the crypto-president,” the enthusiasm surrounding NFTs has diminished significantly since their heyday in 2022. Dr. John Hawkins, a senior lecturer at the Canberra School of Politics, Economics & Society, reflects on the downturn, stating, “Their value has not recovered.” The NFT market, which reached nearly a trillion dollars in market capitalisation during its peak, now finds itself languishing near zero.
The peak of NFT trading occurred in August 2021, when one week alone saw transactions worth $3.24 billion. In stark contrast, the most recent recorded trading week, from September 29 to October 6, registered just $67.93 million, a mere fraction of its former glory. This downturn is also reflected in the fortunes of the once-popular Bored Ape NFTs, which had garnered celebrity endorsements from stars like Eminem and Madonna. Today, those investments have soured, leaving many wary of the NFT market.
The allure of NFTs attracted numerous investors during the pandemic, with many hoping to cash in on what they believed was an innovative digital asset. However, as Dr. Hawkins notes, “There are a lot of buyers that were burnt the first time who may be very reluctant to try again.” With approximately 95% of NFTs now deemed worthless, the market has drastically shifted, leaving 79% of NFTs unsold.
The longevity of cryptocurrencies such as Bitcoin contrasts sharply with the fleeting interest in NFTs. Bitcoin has remained relevant as a potential alternative currency, while NFTs largely represent digital ownership of art that lacks intrinsic value. The distinction is crucial; while Bitcoin has a functional use-case, NFTs primarily serve as speculative investments for individuals seeking status rather than genuine artistic appreciation.
Despite the challenges facing the NFT market, Trump’s trading cards may still yield financial rewards for him personally. Dr. Hawkins points out, “The Trump cards are different in that they are being promoted by someone with a huge fan base and media access.” However, he cautions that they remain a speculative asset, devoid of any real underlying value or cash flow.
Trump’s trading card venture does hold one glimmer of hope for potential value appreciation: his political prospects. Dr. Hawkins observes, “If Trump wins, the chances of their price going up is enormously higher than if he loses.” This suggests that the cards may be more than just collectibles; they are intertwined with the unpredictable world of politics and public perception.
As Trump continues to leverage his celebrity status in the NFT realm, the broader question remains: will his efforts help to revive interest in a market that has been in decline? While he may attract attention, the prospects for NFTs seem dim, leaving many to wonder if Trump’s trading cards are merely a temporary distraction from the stark realities facing digital assets today.
