Dissecting returns of non-fungible tokens (NFTs): Evidence from CryptoPunks

Jying-Nan Wang, Yen-Hsien Lee, Hung-Chun Liu and Yuan-Teng Hsu

The North American Journal of Economics and Finance, 2023, vol. 65, issue C

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.

Keywords: NFTs; CryptoPunks; Ethereum; COVID-19; Cryptocurrency (search for similar items in EconPapers)
JEL-codes: C14 C22 G14 G15 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecofin:v:65:y:2023:i:c:s1062940823000153

DOI: 10.1016/j.najef.2023.101892

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