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

Center for Financial Studies Working Paper No. 693, 2023

35 Pages Posted: 19 May 2022 Last revised: 14 Aug 2023

See all articles by Roman Kräussl

Roman Kräussl

Bayes Business School (formerly Cass); Hoover Institution, Stanford University

Alessandro Tugnetti

University of Luxembourg - Department of Finance

Date Written: May 17, 2022

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 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. Our intention is to design a framework that can help
understanding the price formation of NFTs. We further aim to shed light on the value creating
determinants of NFTs in order to better understand the 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 (May 17, 2022). Center for Financial Studies Working Paper No. 693, 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

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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