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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.

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