Investor Experience Matters: Evidence from Generative Art Collections on the Blockchain

57 Pages Posted: 4 Mar 2022 Last revised: 16 Aug 2022

See all articles by Sebeom Oh

Sebeom Oh

Temple University - Fox School of Business and Management

Samuel Rosen

Temple University, Fox School of Business

Anthony Lee Zhang

University of Chicago - Booth School of Business

Date Written: August 2022

Abstract

In the market for non-fungible tokens (NFTs) on the blockchain, experienced investors systematically outperform inexperienced investors. Controlling for holding period, experienced investors make 8.6 percentage points more per trade on average. This outperformance is mostly explained by experienced investors' greater participation in primary market sales of NFT collections, which produced significantly higher average returns during our sample period. Our results shed light on the frictions present in NFT markets, and have implications for the design of NFT investment strategies.

Suggested Citation

Oh, Sebeom and Rosen, Samuel and Zhang, Anthony Lee, Investor Experience Matters: Evidence from Generative Art Collections on the Blockchain (August 2022). Available at SSRN: https://ssrn.com/abstract=4042901 or http://dx.doi.org/10.2139/ssrn.4042901

Sebeom Oh

Temple University - Fox School of Business and Management ( email )

Philadelphia, PA 19122
United States

Samuel Rosen (Contact Author)

Temple University, Fox School of Business ( email )

Fox School of Business and Management
Philadelphia, PA 19122
United States

HOME PAGE: http://sites.google.com/view/samuel-rosen/

Anthony Lee Zhang

University of Chicago - Booth School of Business ( email )

5807 S. Woodlawn Avenue
Chicago, IL 60637
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
786
Abstract Views
2,278
rank
46,950
PlumX Metrics