Can Donald Trump NFTs Make You Rich? Here’s Everything You Need to Know

Donald Trump NFTs

First-time investors should know that there are 2 important concepts which are required to be understood regarding NFTs (Non-Fungible Tokens): fungibility and tokens. Tokens are limited, digitally authenticated assets and these secured by decentralized blockchains. 

Fungibility is defined as a term utilised to describe assets holding equal value to one another. For example, 1 ounce of gold has equal worth as another ounce of gold and one bitcoin has equal value as another bitcoin. Such assets are called fungible. Therefore, non-fungible assets are such assets which hold distinct value on the basis of traits. For example, automobiles, real estate, etc. are all non-fungible assets. Such assets hold their own value on the basis of characteristics such as mileage, availability, desirability, etc. Simply put, NFTs are assets which are verified by using blockchain technology which holds distinct and unique value.

Understanding the working of NFTs

More often than not, NFTs are developed by using Ethereum. The usage of Ethereum for some NFTs is so popular that it has congested the network. This has resulted in levying higher transaction fees. However, other blockchains having much cheaper fees can be utilised for NFTs. This will make them better options for low-value NFTs. NFTs enable users to own digital assets such as virtual real estate, art, digital sneakers, etc. Concept of digital assets is same just as in-app purchases of items in video games. The only thing which distinguishes NFTs are their uniqueness and ability to be transferred to another owner as a result of blockchain technology. 

Donald Trump NFTs

Former US President, Mr. Donald Trump, was able to make at least 6 figures of income just by selling NFTs in 2022, as per new financial disclosure. Basically, NFTs are unique digital assets having their ownership recorded on the digital ledger which is called as blockchain. Trump made between $100,001 and $1 million in income with the help of NFTs. This is as per his 2022 financial disclosure form. 

Trump, who is a leading contender for the 2024 Republican presidential election, is required to file the form as the candidate. In December 2022, Mr. Trump made an announcement about his first NFT collection. This was a series of digital “trading cards.” Such cards featured cartoon drawings of him in several heroic postures. For example, one card shows him in the space suit in which he is wearing sunglasses. In another card, he was seen as a superhero who shoots lasers from his eyes. 

To much surprise, the first NFT collection from the former President sold out in less than 24 hours after going on sale. As a result of this, the creators saw ~$4.5 million windfall. People buying Trump-themed NFTs were able to gain ownership of the specific digital copy of the image. As with most digital art, such images can be copied easily and anyone can display them, not just the purchaser of NFTs. Businessman-turned-politician described these $99 NFTs as pertaining to his life and career. 

At that point in time, Mr. Donald Trump had already announced about his 2024 presidential campaign. However, the site mentioned that the cards have nothing to do with his political campaign. NFT INT LLC, seller of the cards, utilised Trump’s name and likeness. This was done under the paid licensing agreement with the help of the company called CIC Digital LLC. Trump was able to mint more than $5 million in income as a result of speaking engagements through the similarly named company, CIC Ventures LLC. 

Second innings of Donald Trump NFTs

Donald Trump released the second innings of his NFT trading cards in mid-April 2023. Despite bragging about the fact that he made ~$4.6 million, the actual value of such cards saw a significant drop. Former president, Mr. Donald Trump, made an announcement on 18 April that he decided to sell another series of the NFT trading cards. These cards are similar to those which were released this past December. 

In the social media post, Mr. Trump posted that because of the great success of his previously launched Digital Trading Cards, he is doing Series 2.  Around 6 hours later, Trump informed that all of his 47,000 digital trading cards were sold out. The proceeds totalled $4.6 million. However, the actual value of the trading cards exhibited the different story. The floor price fell from 0.42945 ETH to 0.18 ETH in just 24 hours. On 17 April, average price of the trading card was 0.3943 ETH after the total of 38 sales. However, on 18 April, the average price was 0.1569 ETH. This was after the total of 1,035 sales. Despite such figures, Mr Trump bragged regarding the success of his trading cards.

Should you have invested in Donald Trump NFTs?

A range of events around Mr. Former President’s life have impacted the price of NFTs. For example, an indictment and arrest of Mr Donald Trump earlier in March impacted the price of NFTs. News of Trump’s indictment led to the increase in prices of NFTs. 

In April 2023, Trump made an announcement about the second series of Trump Digital Trading Cards. Just like the previous series, series 2 collection were priced at $99. Second series featured 47,000 NFTs. This was in reference to Trump running to become 47th president of the U.S. in 2024 Presidential election. First collection had 45,000 NFTs. This was the reference to Trump selected as 45th President of the country. 

Let’s suppose an investor is invested $1000 in his NFTs. Considering the price of $99, that person would have got 10 Trump Digital Trading Cards at that time. 

Considering the current price of 0.119 ETH (~$227.27), the investment will amount to $2,272.7 today. This equates a return of ~130% over the past 6 months. 

While it still remains uncertain as to how much value will these NFTs hold, but in the previous 6 months the collection has held well above its launch price. Apart from this, there has been some demand from fans and collectors.

However, investors who would have minted Series 2, will be presently in losses. Floor price is currently  0.0248 ETH (~$47.36) each. This equates to the loss of ~52.1%. 

Any sort of developments regarding the 2024 Presidential elections will impact the price of such NFTs.  

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