A human capital factor-based model in NFT valuations
Abstract:
A non-fungible token (NFT) is a non-interchangeable unit of data stored on a blockchain, a form of digital ledger, that can be sold and traded. Recently, many successful NFTs have been traded at thousands of dollars. The volatility and price range of NFTs are also notable. This project seeks to find a NFT valuation model that can explain a part of the NFT’s valucation. Just like the identity of the artist can explain a big fraction of the price of the physical artwork that she creates. We propose and test the hypothesis that part of the NFTs’ valuation can be explained by the identity of the artist or founding team members.
