Fertile LAND: Pricing non-fungible tokens
M Dowling - Finance Research Letters, 2022 - Elsevier
Finance Research Letters, 2022•Elsevier
The current popularity of non-fungible token (NFT) markets is one of the most notable public
successes of blockchain technology. NFTs are blockchain-traded rights to any digital asset;
including images, videos, music, even the parts of virtual worlds. As a first study of NFT
pricing, we explore the pricing of parcels of virtual real estate in the largest blockchain virtual
world, Decentraland; an NFT simply termed LAND. We show a LAND price series
characterised by both inefficiency and a steady rise in value.
successes of blockchain technology. NFTs are blockchain-traded rights to any digital asset;
including images, videos, music, even the parts of virtual worlds. As a first study of NFT
pricing, we explore the pricing of parcels of virtual real estate in the largest blockchain virtual
world, Decentraland; an NFT simply termed LAND. We show a LAND price series
characterised by both inefficiency and a steady rise in value.
Abstract
The current popularity of non-fungible token (NFT) markets is one of the most notable public successes of blockchain technology. NFTs are blockchain-traded rights to any digital asset; including images, videos, music, even the parts of virtual worlds. As a first study of NFT pricing, we explore the pricing of parcels of virtual real estate in the largest blockchain virtual world, Decentraland; an NFT simply termed LAND. We show a LAND price series characterised by both inefficiency and a steady rise in value.
Elsevier