The power of a well-known name or tight community can be seen everywhere. It is particularly valuable when trying to sell something, as shown by the success of Trump Digital Trading Cards, an NFT project seeing great success despite a declining economy, crypto scrutiny, and a major drop in the value of NFTs as a whole.
Built-in markets are still gigantic winners: There are plenty of projects suffering as funding dwindles and the economy worsens, but others are still going strong. Trump Digital Trading Cards is a great example of that, with the Trump name driving the project’s success.
While the trading cards are not owned by Trump or his companies, his name and die-hard community are enough to help make the NFT project a success. He has an almost cult-like following, and it is enough to make Trump-related ventures popular.
Communities have long driven NFT success: It is not just celebrity followings that have an effect on success. In general, communities and followers of any type are an important aspect of success, especially for NFT and crypto projects.
It is especially important for long-term growth since many trades and discussions take place between members of a community. Moreover, the support is just as important to the artists or creators as it is to the entire project.
A great example is the Bored Ape Yacht Club (BAYC), which is one of the most valuable collections in the world. However, beyond its market cap, it also stands out for its cultural influence, and a lot of that comes from the community. Owning a BAYC NFT is all about becoming part of something, and the benefits play a role in that.
Communities will also spread the word about a project they are passionate about and stick with it through thick and thin. On the other hand, if a project has a weak community or following, it might find itself abandoned the moment something new comes along or times get tough.
Celebrity can backfire: While celebrity and a strong following help projects, they can also backfire. Once again, the Bored Ape Yacht Club stands out as a prime example. Celebrities enhanced the brand, drawing a lot of attention and investments, but there is now a class action lawsuit claiming the endorsements caused NFT values to balloon, ultimately losing people money.
It is not the celebrity endorsement to backfire. Kim Kardashian paid over $1 million to the SEC to settle a crypto scam lawsuit. Mark Cuban also faced heat over a crypto “Ponzi scheme” after he promoted the now-bankrupt cryptocurrency trading platform and brokerage Voyager Digital.
Spencer Hulse is a news desk editor at Grit Daily News. He covers breaking news on startups, affiliate, viral, and marketing news.
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