Alternative investments in the Fintech era: The risk and return of Non-Fungible Token (NFT)

Kong, De-Rong; Lin, Tse-Chun

doi:10.2139/ssrn.3914085

Cited by 80 publications

(54 citation statements)

References 50 publications

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“…Although NFT has a large market scale and multiple practical standards, the market theory of NFT is still immature. The existing NFT marketplace uses an English Auction or Dutch Auction to trade NFTs [12]. There are several limitations in the existing mechanism due to the non-fungible property:…”

Section: Introductionmentioning

confidence: 99%

ABSNFT: Securitization and Repurchase Scheme for Non-Fungible Tokens Based on Game Theoretical Analysis

Chen¹,

Cheng²,

Deng³

et al. 2022

Preprint

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The Non-Fungible Token (NFT) is viewed as one of the important applications of blockchain technology. Although NFT has a large market scale and multiple practical standards, several limitations of the existing mechanism in NFT markets exist. This work proposes a novel securitization and repurchase scheme for NFT to overcome these limitations. We first provide an Asset-Backed Securities (ABS) solution to settle the limitations of non-fungibility of NFT. Our securitization design aims to enhance the liquidity of NFTs and enable Oracles and Automatic Market Makers (AMMs) for NFTs. Then we propose a novel repurchase protocol for a participant owing a portion of NFT to repurchase other shares to obtain the complete ownership. As participants may strategically bid during the acquisition process, our repurchase process is formulated as a Stackelberg game to explore the equilibrium prices. We also provide solutions to handle difficulties at market such as budget constraints and lazy bidders.

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Section: Introductionmentioning

confidence: 99%

ABSNFT: Securitization and Repurchase Scheme for Non-Fungible Tokens Based on Game Theoretical Analysis

Chen¹,

Cheng²,

Deng³

et al. 2022

Preprint

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“…For all these reasons, several previous studies have applied it to diagnose art markets [4,10,11]. Some works also used the hedonic model to price NFTs, but focused on a single collection: CryptoKitties [12], CryptoPunks [13] or Decentraland [14]. To the best of our knowledge, our article is the first proposal of a global NFT price index.…”

Section: Introductionmentioning

confidence: 99%

Constructing a NFT Price Index and Applications

Schnoering¹,

Inzirillo²

2022

Preprint

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We are witnessing the emergence of a new digital art market, the art market 3.0. Blockchain technology has taken on a new sector which is still not well known, Non-Fungible tokens (NFT). In this paper we propose a new methodology to build a NFT Price Index that represents this new market on the whole. In addition, this index will allow us to have a look on the dynamics and performances of NFT markets, and to diagnose them.

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“…Hence, conventional asset-pricing models are unlikely to explain NFT returns. The study provided the first comprehensive analysis that NFTs serve as a novel investment vessel in this Fintech era [8]. Dowling explored if NFT pricing is related to cryptocurrency pricing, given the NFT market emerged out of cryptocurrencies.…”

Section: Introductionmentioning

confidence: 99%

An Empirical Analysis of the Impact of NFT on the Cultural Industry

Yang¹,

Shao²,

Zhang³

2022

Proceedings of the 2022 2nd International Conference on Enterprise Management and Economic Development (ICEMED 2022)

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2021, as the first year of the development of the Non-Fungible Token (NFT), has formed a wide impact on the development of the cultural industry in all aspects. This paper will compare and analyze the Jingtan and Opensea platforms through qualitative and quantitative methods, and at the same time analyze the correlation between Alibaba's U.S. stock data, Poly Culture Group's Hong Kong stock data, and Jingtan platform user data, as well as the correlation between Facebook's U.S. stock data and Opensea platform user data, to deduce the difference and correlation between foreign NFTs in promoting the development of cultural industries and domestic NFT industry phenomena and put forward the suggestion that China should use policies to escort NFT with eliminating policy risks, to motivate more companies to invest in NFT. In this case, the Chinese government can promote the development of China's cultural industry and enhance China's soft power.

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Alternative investments in the Fintech era: The risk and return of Non-Fungible Token (NFT)

Cited by 80 publications

References 50 publications

ABSNFT: Securitization and Repurchase Scheme for Non-Fungible Tokens Based on Game Theoretical Analysis

ABSNFT: Securitization and Repurchase Scheme for Non-Fungible Tokens Based on Game Theoretical Analysis

Constructing a NFT Price Index and Applications

An Empirical Analysis of the Impact of NFT on the Cultural Industry

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