As cryptocurrencies continue to be singled out for failing to regulate, NFTs are gradually gaining support from US lawmakers. Indeed, several candidates for the US Congress have decided to use non-fungible tokens to raise funds during the campaign for the midterm elections.
A major asset for young politicians struggling to find funding
Unlike their elders, young American politicians do not benefit from the address book necessary to find people capable of financing their electoral ambitions. By combining travel costs to meet with voters, the campaign office and its staff, election campaigns have become more expensive, according to the ACE Electoral Knowledge Network. Opensecrets.org reports that in 2020, the cheapest winning campaign for the Senate was worth $2,174,467 and $83,544 for the House. For information, the 2020 US election was the most expensive in the country’s history.
Young engineer and candidate for a seat in the House of Representatives in California, Shrina Kurani claims a reform that will allow politicians of his category to finance their campaign. ” We don’t talk enough about the fact that one of the reasons our elected representatives tend to be older is that you need the money to run. When you’ve had more than 60 years to build a network, you have a bigger repertoire to raise money from. Without campaign finance reform, we run into big bucks every time“, she said. So she decided to turn to NFTs as a fundraising tool for her campaign, like other congressional candidates.
A choice that is already bearing fruit
According to statistics available on her fundraising site, Ms. Kurani has already distributed around 21 NFTs to her campaign donors. With contributions expected to be between $200 and $5,800, she was able to raise $6,610 for her campaign despite the pessimism of some candidate colleagues. “When I talked about my desire to launch an NFT for my campaign, I was treated to blank stares. Most people in the political world had no idea what I was talking about or only knew about crypto as something criminal“, she posted on Twitter.
Republican candidate for the Senate in Arizona, Blake Masters managed to raise $575,000 in funding through a rather unique use of NFTs. He has indeed offered donors an autographed physical copy of his bestselling book.Zero to One, as well as limited-edition NFTs based on the book cover. Added to this are other perks like access to a Token Holders Party. His campaign team said that each donor will be reimbursed 50% of their donation, or $2,900, while retaining the NFT and associated benefits in the event of a defeat in the primaries.
Since NFTs have already proven their ability to stimulate user engagement around a cause, their use in the context of an electoral campaign seems logical. This choice was also made in South Korea where the ruling party intends to rely on NFTs to finance the campaign of its candidate for the next presidential elections.
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Luc Jose Adjinacou
Far from having dampened my enthusiasm, an unsuccessful investment in 2017 on a few cryptos only increased my enthusiasm. I therefore resolved to study and understand the blockchain and its many uses and to relay with my pen information relating to this ecosystem.