NFTs: Digital Asset Firm CoinShares Launches Bot to Identify “Fair” NFT Price

 

CoinShares, which claims to be one of Europe’s largest and longest-standing full-service digital asset investment and trading groups, recently announced the launch of CoinSharesNFTAI (@CoinsharesNFTAI), a Twitter bot that “utilizes proprietary algorithms developed by CoinShares researchers to estimate the current fair market price for an NFT.”

As the volume of transactions has declined in recent months, it has “become difficult for collectors to determine what is the accurate price for an NFT.”

To help shed light on this issue, the CoinShares research team has recently “published a research paper which found a methodology to build an NFT Price Index.” In sticking with the CoinShares core belief of increasing accessibility to digital assets, the CoinShares research team built the CoinSharesNFTAI bot that buyers and sellers can “engage with to determine the fair market value of the NFT on a list of collections that CoinShares will expand over time.”

Some attributes that impact NFT prices “are easily quantifiable, while others remain more abstract.” Similar to how NFT collectors use all the available information to make a prediction, the CoinSharesNFTAI model “analyses previous transactions, looking at how each feature is impacting the price to make the best prediction.”

NFT pricing “isn’t an exact science, nevertheless there are multiple factors” that can explain the price of an NFT:

  • The hype around the specific collection
  • The rarity of the individual NFT inside the collection
  • The access it gives to exclusive communities, content, and products
  • The volume of transactions within the collection
  • The previous transactions made for the collection

Every Monday, CoinShares runs its proprietary machine learning model, which “assesses the status of the NFT market by analysing the aforementioned traits, allowing the predictions to be as accurate as possible.”

Jean-Marie Mognetti, Chief Executive Officer of CoinShares, commented:

“At CoinShares, we take pride in bringing transparency to the digital asset space, allowing investors to feel more comfortable participating in the ecosystem. NFTs are the newest asset to come to crypto markets and it’s important that everyone feels comfortable buying and selling them. To this end, we made our proprietary NFT pricing algorithm available to the public through our CoinSharesNFTAI Twitter bot. We expect NFT investors to play a big role in the future growth of the crypto space, and we are excited to do our part to assist in that development.”

To use the CoinSharesNFTAI Twitter bot, “send a tweet to @CoinSharesNFTAI with the OpenSea link of the NFT you want to price as well as the hashtag #CoinShares.” The bot will then “reply to you with the price within less than one minute.”

As covered, CoinShares is reportedly one of Europe’s largest and longest standing digital asset investment firm, “managing billions of dollars of assets on behalf of its client base.”

The Group is “focused on expanding investor access to the digital asset ecosystem by pioneering new financial products and services that seek to provide trust and transparency when accessing this new asset class.”

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