Market Microstructure of Non Fungible Tokens

Five Shades of Emerging Business Cases, Eliva Press (Nov 2021), ISBN: 978-1-63648-395-5

10 Pages Posted: 14 Nov 2021 Last revised: 22 Nov 2021

See all articles by Mayukh Mukhopadhyay

Mayukh Mukhopadhyay

Indian Institute of Technology (IIT), Kharagpur, Vinod Gupta School of Management

Kaushik Ghosh

Vinod Gupta School of Management, IIT Kharagpur; Indian Institute of Foreign Trade (IIFT), Kolkata

Date Written: October 1, 2021

Abstract

Non Fungible Token (NFT) Industry has been witnessing multi-million dollar trade in recent times. With rapid innovation of the NFT market environment by technology, innovation, and decentralization, it is becoming hard to distinguish between genuine NFT from fads and scams. This article discuss the NFT market microstructure, with a focus on price formation, market structure, transparency, and applications to other financial areas. Market manipulation in NFT market with the context of wash-sale patterns has also been surveyed. The article concludes by providing pointers on due-diligence activity that can be adopted by investors to mitigate NFT trading risk.

Keywords: Market Microstructure, NFT, ERC721, Wash-Trading

JEL Classification: D40, E44, G14, G23

Suggested Citation

Mukhopadhyay, Mayukh and Ghosh, Kaushik, Market Microstructure of Non Fungible Tokens (October 1, 2021). Five Shades of Emerging Business Cases, Eliva Press (Nov 2021), ISBN: 978-1-63648-395-5, Available at SSRN: https://ssrn.com/abstract=3934676 or http://dx.doi.org/10.2139/ssrn.3934676

Mayukh Mukhopadhyay (Contact Author)

Indian Institute of Technology (IIT), Kharagpur, Vinod Gupta School of Management ( email )

Kharagpur
India

HOME PAGE: http://member.acm.org/~mukhopadhyaym

Kaushik Ghosh

Vinod Gupta School of Management, IIT Kharagpur ( email )

Kharagpur, West Bengal 721302
India

HOME PAGE: http://kaus2007.github.io/online-cv/

Indian Institute of Foreign Trade (IIFT), Kolkata ( email )

1583 Madurdaha, Kolkata
West Bengal
Kolkata, West Bengal 700107
India
033-24195700 (Phone)
033-24432454 (Fax)

HOME PAGE: http://www.iift.ac.in

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