Dissecting returns of non-fungible tokens (NFTs): Evidence from CryptoPunks
North American Journal of Economics and Finance
; 65, 2023.
Article
in English
| Scopus | ID: covidwho-2246183
ABSTRACT
We use transaction data on CryptoPunks to dissect the factors affecting the returns of non-fungible tokens (NFTs). Our results show that trading volume in the short period before a trader buys (sells) CryptoPunk relates negatively (positively) to the returns on NFTs, suggesting that when market trading volume is at a high level, NFT owners are better off on the sell side, and investors interested in NFTs should avoid joining the herd. Turnover of a token tends to harm its returns. Finally, both traders' willingness to purchase and trading experience have a positive impact on NFT returns within short-term investment horizons. © 2023 Elsevier Inc.
Full text:
Available
Collection:
Databases of international organizations
Database:
Scopus
Language:
English
Journal:
North American Journal of Economics and Finance
Year:
2023
Document Type:
Article
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