CoinShares Creates NFT Price-Finding Bot

When it comes to assets, especially newer ones like NFTs, there is always debate about what they are worth and what is ‘fair’ to pay for them. When a Bored Ape, for example, is sold for hundreds of thousands of dollars, there are always those who decry them as being overpriced or overhyped. Just like with famous artwork, the value of an NFT depends on many factors, including utility, design, rarity, and so on.

However, it seems we are a bit closer to getting objective market values for NFTs thanks to CoinShares. The digital assets manager announced on October 13, 2022, the launch of its CoinShares NFT AI. This AI is a Twitter bot that lets users find out how much any NFT is reasonably worth. 

Fair Market Pricing 

In the Twitter thread announcing the bot, CoinShares acknowledged that the NFT landscape is very complex, with new offerings popping up all the time. This means that consumers can be confused as to what is a reasonable price to bid or pay for an asset. This is the issue that CoinShare’s NFT AI addresses. 

“Building on our crypto and quantitative expertise, we came up with an experimental project to price NFTs, whether you own them already or not. This model relies on tested mathematical concepts to predict a fair price for any NFT currently listed on @opensea,” one of the tweets says, outlining how the AI works. 

To get a price quote on an OpenSea-listed asset, users only need to send a tweet to the bot with the link of the asset included. A sample tweet was also made to show how the process works, with CryptoPunk #3322 being used as an example. 

CoinShares Creates NFT Price-Finding Bot

Previously, a research paper was published that showed how the bot determines the price of assets. Four factors are taken into account which include the rarity level of the NFTs’ traits, the attention it has received within the market, the overall state of the market, and the responses of professional traders to the NFT.

Through this, prospective buyers can be given information on the value of the NFT and can make an informed decision. And because this tool has been made available for free on Twitter, it is very easily accessible. 

The Power of Pricing information 

When buying anything, having enough information to make a well-informed decision is extremely important. However, this is not as easily achieved in the NFT market due to a lack of data and the fact that many assets are speculative in nature. This is why we see many hyped but ultimately underwhelming projects emerge and raise large amounts of money from excited buyers who don’t know any better.

With the tool that CoinShares has created, and hopefully with more to come, we can begin to see more informed buying on the part of NFT lovers. Currently, this feature only supports OpenSea-listed assets but hopefully, more resources will emerge in the same vein and the market will be all the better for it.

This site uses cookies to enhance user experience.