TY  - UNPD
A1  - Fridgen, Gilbert
A1  - Kräussl, Roman
A1  - Papageorgiou, Orestis
A1  - Tugnetti, Alessandro
T1  - The fundamental value of Art NFTs
N2  - 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.
T3  - CFS working paper series - No. 709 
KW  - Non-fungible tokens (NFTs)
KW  - Machine Learning
KW  - Fundamental Value
KW  - Speculation
KW  - Ethereum
KW  - Blockchain
Y1  - 2023
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/69134
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-691347
UR  - https://ssrn.com/abstract=4337173
N1  - JEL-Klassifikation: C55 Large Data Sets: Modeling and Analysis
PB  - Center for Financial Studies
CY  - Frankfurt, M.
ER  -