Fertile LAND: Pricing Non-Fungible Tokens
11 Pages Posted: 29 Mar 2021 Last revised: 1 Jun 2021
Date Written: March 18, 2021
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.
Keywords: NFT, non-fungible tokens, market efficiency
JEL Classification: G14, G12
Suggested Citation: Suggested Citation