Non-Fungible Tokens (NFTs): A Review of Pricing Determinants, Applications and Opportunities

35 Pages Posted: 19 May 2022 Last revised: 28 May 2024

See all articles by Roman Kräussl

Roman Kräussl

Bayes Business School (formerly Cass); Hoover Institution, Stanford University; Centre for Economic Policy Research (CEPR)

Alessandro Tugnetti

University of Luxembourg - Department of Finance

Date Written: November 21, 2023

Abstract

This paper provides a review of the development of the non-fungible tokens (NFTs) market,
with a particular focus on its pricing determinants, its current applications, and its future
opportunities. We investigate the current state of the NFT markets and highlight the perception
and expectations of investors towards these products. We summarize and compare the financial
and econometric models that have been used in the literature for the pricing of non-fungible
tokens with a special focus on their predictive performance. We design a framework that
can help to understand the price formation of NFTs. We further aim to shed light on the
value creating determinants of NFTs in order to better understand investors’ behavior on the
blockchain.

Keywords: Digital Assets, NFT, Pricing, Valuation

JEL Classification: G12, G18, G41

Suggested Citation

Kraeussl, Roman and Tugnetti, Alessandro, Non-Fungible Tokens (NFTs): A Review of Pricing Determinants, Applications and Opportunities (November 21, 2023). Available at SSRN: https://ssrn.com/abstract=4112429 or http://dx.doi.org/10.2139/ssrn.4112429

Roman Kraeussl (Contact Author)

Bayes Business School (formerly Cass) ( email )

Hoover Institution, Stanford University ( email )

Stanford, CA 94305
United States

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

Alessandro Tugnetti

University of Luxembourg - Department of Finance ( email )

L-1511 Luxembourg
Luxembourg
(+352) 46 66 44 5331 (Phone)

HOME PAGE: http://wwwen.uni.lu/research/fdef/df/people/alessandro_tugnetti

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