Reference : The Fundamental Value of Art NFTs
E-prints/Working papers : Already available on another site
Business & economic sciences : Finance
Finance
http://hdl.handle.net/10993/54548
The Fundamental Value of Art NFTs
English
Fridgen, Gilbert mailto [University of Luxembourg > Interdisciplinary Centre for Security, Reliability and Trust (SNT) > FINATRAX >]
Kräussl, Roman mailto [University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Department of Finance (DF) >]
Papageorgiou, Orestis mailto [University of Luxembourg > Interdisciplinary Centre for Security, Reliability and Trust (SNT) > FINATRAX >]
Tugnetti, Alessandro mailto [University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Department of Finance (DF) >]
3-Feb-2023
43
Yes
[en] Non-fungible tokens (NFTs) ; Machine Learning ; Blockchain
[en] Art-related non-fungible tokens (NFTs) took the digital art space by storm in 2021, generating massive amounts of volume and attracting a large number of users to a previously obscure part of blockchain technology. Still, very little is known about the attributes that influence the price of these digital assets. This paper attempts to evaluate the level of speculation associated with art NFTs, comprehend the characteristics that confer value on them and design a profitable trading strategy based on our findings. We analyze 860,067 art NFTs that have been deployed on the Ethereum blockchain and have been involved in 317,950 sales using machine learning methods to forecast the probability of sale, the trade frequency and the average price. We find that NFTs are highly speculative assets and that their price and recurrence of sale are heavily determined by the floor and the last sale prices, independent of any fundamental value.
http://hdl.handle.net/10993/54548
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4337173

File(s) associated to this reference

Fulltext file(s):

FileCommentaryVersionSizeAccess
Open access
SSRN-id4337173.pdfAuthor postprint846.04 kBView/Open

Bookmark and Share SFX Query

All documents in ORBilu are protected by a user license.