A group of Democratic operatives planning to convert political memorabilia and photographs into NFTs is looking to raise money by mining – and then selling – digital assets beyond the sports and entertainment sector.
why it matters: With both conservative and liberal groups already spending millions on lawmakers pressuring the expansion of President Biden’s social safety net, Democrats are looking to tap into irreconcilable tokens to topple their opponents.
running news: A new group on Monday, the front row, will launch a political NFT marketplace – and allow only Democratic campaigns and causes to access it.
- The first NFTs for sale will be a digital collectible from the Texas Democratic Party.
- For example, for $250, a political activist might buy a digital “wanted” poster, with animation, of various Texas lawmakers who fled the state this year in an unsuccessful attempt to block its new restrictive voting law.
Flashback: In August, Scott Jensen, the Republican candidate for governor in Minnesota, Issued two NFTs To raise funds for his 2022 campaign.
- He claimed to be the first politician to offer NFTs.
- Sports and entertainment stars were early adopters of the trend, along with Tom Brady and Tiger Woods latest to cash in.
how it works: A political organization or campaign will create an NFT, establish the number of tokens and then set the price.
- Buyers will purchase NFTs through the Front Row website, just like a traditional donor donates to a campaign through the Act Blue website.
- The payer – or more accurately, the buyer – would then own the NFT.
- Proceeds will go to the campaign, with Front Row charging a transaction fee.
- Sales have to be made in line with campaign finance laws. Federal candidates will be limited to selling NFTs for $5,800 – the maximum contribution per cycle – while PACs and party committees can raise their prices accordingly.
big picture: NFT, Artist Kevin McCoy’s “Quantum” Auctioned for the First Time $1.47 million In January.
- The NFT market has since exploded, with trading volume rising to $10.67 billion. According to CNBC.
go in: While NFTs mostly use blockchain technology, they are not required to be purchased with cryptocurrencies.
- The National Republican Congressional Committee is trying to tap into the cryptocurrency craze by announcing it will begin accepting contributions to cryptocurrency, Nerdshala reported in June.