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

55 Pages Posted: 4 Mar 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: February 24, 2022

Abstract

In the market for non-fungible tokens on the blockchain, experienced investors systematically outperform inexperienced investors. Controlling for holding period, experienced investors make 10 percentage points more per trade. NFT collections purchased by experienced investors sell out more often and more quickly in primary markets, and experience higher price growth in secondary markets. Our results suggest that NFT markets are characterized by high degrees of informational inefficiency, allowing investors with informational advantages to systematically extract profits.

Suggested Citation

Oh, Sebeom and Rosen, Samuel and Zhang, Anthony Lee, Investor Experience Matters: Evidence from Generative Art Collections on the Blockchain (February 24, 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

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