Digital assets manager CoinShares is offering a new solution to determine the fair market value of non-fungible tokens (NFTs).
The firm is announcing the official launch of an experimental project that uses artificial intelligence (AI) to determine reasonable prices for digital collectibles.
“We are very excited and proud to announce the official launch of @CoinSharesNFTAI. A simple tweet can let you know how much an NFT might be worth. Building on our crypto and quantitative expertise, we came up with an experimental project to price NFTs, whether you own them already or not.”
Users can tweet at the bot with the respective links of NFTs listed on OpenSea, the world’s largest NFT marketplace, to know how much the assets would fetch.
“To interact with the NFT Bot, all you need to do is to tweet at it, including the OpenSea link of the NFT you are looking to price.”
The firm says the bot uses tested, complex mathematical concepts to determine the price of NFTs. CoinsShares researchers Yanis Bakhtaoui and Hugo Schnoering lay out the methodology used by the bot in a paper published earlier this month.
According to the researchers, the prices of digital collectibles are determined by four key factors: the hype surrounding an NFT, the specific traits it possesses compared to other NFTs in its collection, how the overall NFT market is doing, and the actions of professional NFT traders.
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