How should NFT be valued?

Authors

  • Xiting Wang

DOI:

https://doi.org/10.54691/bcpbm.v36i.3504

Keywords:

Value; NFT; Worth.

Abstract

NFTs are non-fungible, one-of-a-kind digital assets that are enabled by blockchain technology. Digital encrypted assets known as non-fungible tokens are one-of-a-kind, rare, and impossible to duplicate. A greater variety of use cases, including as digital art, domain names, gaming, collectibles, and others, have been observed recently for NFTs. On a blockchain, like Ethereum, NFTs are created (i.e., minted), and they can be used to confirm ownership of an asset (where it came from, who is the owner, etc.). Data from a joint analysis by Nonfungible.com and L' Atelier BNP Paribas indicates that 2020 In 2018, the overall market value of the NFT market was around $ 338,035,012 with an annual growth rate of 299%. This excludes wash trading and abandoned projects. Some NFTs cost millions of dollars, which is quite expensive. How can the value of NFTs be fairly honestly evaluated is a common question. Let's analyze the history of NFT's evolution before responding to this query.

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References

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Laura Wood, Senior Press Manager,Global Non-Fungible Tokens (NFTs) Market Report 2022: Rising Demand for Digital Artworks to Drive Sector Growth – Research And Markets.com. September 16, 2022 09:39 AM Eastern Daylight Time, https://www.businesswire.com/news/home/20220916005320/en/Global-Non-Fungible-Tokens-NFTs-Market-Report-2022-Rising-Demand-for-Digital-Artworks-to-Drive-Sector-Growth---ResearchAndMarkets.com

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Published

2023-01-13

How to Cite

Wang, X. (2023). How should NFT be valued?. BCP Business & Management, 36, 468–479. https://doi.org/10.54691/bcpbm.v36i.3504