Non-fungible tokens and factors affecting their pricing in a meta synthesis method

Document Type : Research Paper

Authors

1 PhD student in finance, majoring in financial engineering, Faculty of Economics, Management and Accounting, Yazd University

2 Associate Professor, Faculty of Economics, Management and Accounting, Department of Accounting and Finance, Yazd University

10.22051/jfm.2024.45794.2886

Abstract

Non-fungible tokens are known as unique digital assets that are stored in the blockchain. Their non-fungibility makes them different from other crypto assets. Therefore, their pricing is different from the pricing of similar tokens The purpose of this research is to identify the basic characteristics and better understanding of the factors affecting the pricing of these tokens in meta synthesis method Which is done by using Sandelowski's seven steps and by searching the title, abstract and main text of the sources in the databases that were provided until September 2023. In total, among the 86 sources found, 35 researches reached the content acceptance stage. This research is one of the first researches that has identified the factors affecting the pricing of non- fungible tokens, while so far these factors have not been presented using the meta synthesis method. The results indicate that 30 factors are effective in the pricing of Non-fungible tokens, which are categorized into six components and two main groups. The validity of this research has been explained by explaining the steps and using the critical assessment skills program method, and the reliability was measured and confirmed using the intraclass correlation method.

Keywords

Main Subjects

References

 
Abbasi, F; Mahmoudi, J; Aryalajan Tabar, M; (2018) " Research in electronic governance", Management Future Research Quarterly, Year 30, Number 116, Spring 2018. (In Persian).
Akpan, M., & Ukwu, HU (2023). Comprehensive analysis of non-fungible tokens valuation and accounting under IFRS: Challenges and artificial intelligence implications. Risk Governance and Control: Financial Markets & Institutions, 13(3), 8-21.
Alon, I., Bretas, V. P., & Katrih, V. (2023). Predictors of NFT prices: An automated machine learning approach. Journal of Global Information Management (JGIM), 31(1), 1-18.‏22
Anjum, N. A., & Rehmani, M. H. (2022). Non-Fungible Tokens in Business and Management--A Review. arXiv preprint arXiv:2208.04836.
Ante, L. (2021). The non-fungible token (NFT) market and its relationship with Bitcoin and Ethereum. FinTech, 1(3), 216-224.
Bench, S., & Day, T. (2010). The user experience of critical care discharge: a meta-synthesis of qualitative research. International journal of nursing studies, 47(4), 487-499.
Biranvand, H; Nazari, M; (2019) "Determining factors of the price discount threshold: a meta- meta synthesis approach", Business Management, 2019, Volume 12, Number 1, pp. 63-44. (In Persian).
Bonolis.p, Legrottaglie.F, simon. P (2022).” NFT: birth, applications, and new business model” LUISS Dipartimento di Impresa e Management Cattedra in Digital Finance.
Boom. D.V(2022).” NFTs explained: Why people spend millions of dollars on JPEGs”, Jan. 13, 2022 2:33 p.m. PT. https:// www.cnet.com/ culture/nfts-explained-why-people-spend-millions-of-dollars-on-jpegs/
Burton, B. J., & Jacobsen, J. P. (1999). Measuring returns on investments in collectibles. Journal of Economic Perspectives, 13(4), 193-212.
Busch. K.E(2022)” Non-Fungible Tokens (NFTs)” Congressional Research Service, https://crsreports.congress.gov. R47189
Chalmers, D., Fisch, C., Matthews, R., Quinn, W., & Recker, J. (2022). Beyond the bubble: Will NFTs and digital proof of ownership empower creative industry entrepreneurs? Journal of Business Venturing Insights, 17, e00309.
Chandra, Y. (2022). Non-fungible token-enabled entrepreneurship: A conceptual framework. Journal of Business Venturing Insights, 18, e00323.
Cooper, H., (2015). Research Synthesis and MetaAnalysis: A Step-by-Step Approach. (Vol. 2). Sage publications.
Das, D., Bose, P., Ruaro, N., Kruegel, C., & Vigna, G. (2022, November). Understanding security issues in the NFT ecosystem. In Proceedings of the 2022 ACM SIGSAC Conference on Computer and Communications Security (pp. 667-681).
Demir, E., Ersan, O., & Popesko, B. (2022). Are fan tokens fan tokens? Finance Research Letters, 47, 102736.
Dev, A., Gomez, K. S., & Mathew, S. V. (2022). Non-Fungible Tokens (NFT): new emergin g digital asset. Int. J. Res. Eng. Sci, 10(4), 1-7.
Dianti Dilmi, Zahra (2018) "Qualitative and quantitative research methods in accounting, Tehran, Adalat Navin. (In Persian).
Dowling, M. (2022). Fertile LAND: Pricing non-fungible tokens. Finance Research Letters, 44, 102096.
Dowling, M. (2022). Is non-fungible token pricing driven by cryptocurrencies? Finance Research Letters, 44, 102097.‏
Erwin, E. J., Brotherson, M. J., & Summers, J. A. (2011). Understanding qualitative metasynthesis: Issues and opportunities in early childhood intervention research. Journal of Early Intervention, 33(3), 186-200.
Finlayson, K. W., & Dixon, A. (2008). Qualitative meta-synthesis: a guide for the novice. Nurse researcher, 15(2).
Galbraith, J. W., & Hodgson, D. J. (2018). Econometric fine art valuation by combining hedonic and repeat-sales information. Econometrics, 6(3), 32.
Ghasemi, A. R & M. A, Rait Pisheh, (2014). "Presenting a model to evaluate the sustainability of the supply chain with a meta synthesis approach", executive management research paper, volume 7, number 14. (In Persian).
Glover.E.(2022).” 10 Popular NFT Use Cases”. https://builtin.com/nft-non-fungible-token/nft-use-cases
GraphPad Statistics (2021). Inter-rater Reliability. Statistical tutorials and software guides. Retrieved september, 21, 2023, from https:// graphpad. ir/ inter-rater-reliability/.php
Gudjani, A (2014). Advanced statistical methods and their applications, Jamia-Nagar Publications, first edition. (In Persian).
Ho, K. H., Hou, Y., Chan, T. T., & Pan, H. (2022, October). Analysis of Non-fungible token pricing factors with machine learning. In 2022 IEEE International Conference on Systems, Man, and Cybernetics (SMC) (pp. 1161-1166). IEEE.
Horky, F., Rachel, C., & Fidrmuc, J. (2022). Price determinants of non-fungible tokens in the digital art market. Finance Research Letters, 48, 103007.
Kaczynski.S, Kominers.D(2021)” How NFT create value?”, Technology and Analytics, harvard business review
kalantari, A. Bahram Arjavand, M. Kamalinejad, F & Kharat, Y (2019)" Examining the opportunities and challenges of the non-fungible tokens market and its place in business relations, Management, Economics and Entrepreneurship Studies Quarterly, first period, number 4, winter 2019. (In Persian).
Karim, S., Lucey, B. M., Naeem, M. A., & Uddin, G. S. (2022). Examining the interrelatedness of NFTs, DeFi tokens and cryptocurrencies. Finance Research Letters, 47, 102696.
Kireyev.p(2022)” NFT Marketplace Design and Market Intelligence” The business school for the world, electronic copy available at: https://ssrn.com/abstract=4002303
Kräussl, R., & Tugnetti, A. (2022). Non-fungible tokens (NFTs): A review of pricing determinants, applications and opportunities. Center for Financial Studies Working Paper, (693)
La Cava, L., Costa, D., & Tagarelli, A. (2023). Visually Wired NFTs: Exploring the Role of Inspiration in Non-Fungible Tokens. arXiv preprint arXiv:2303.17031.
Lau, K. (2020). Non-fungible tokens: a brief introduction and history. Crypto. com, 5.
Laurenz kapl. P(2023)” The impact of non-fungible tokens  on collectors and artists” Bachelor Thesis for Obtaining the Degree Bachelor of Science in International Management,Modul University,private university vienna
Liu.W, Zhao.Y, Wang.Y, Wang.p(2023)” What drives NFT prices? A machine learning analysis” This preprint research paper has not been peer reviewed. Electronic copy available at: https://ssrn.com/abstract=4437010
Lucey, B. M., Vigne, S. A., Yarovaya, L., & Wang, Y. (2022). The crypto currency uncertainty index. Finance Research Letters, 45, 102147.
Mahmoudi, A and S. M Miri Balajurshari (2022) "Analysis of the insurance mechanism of non-fungible tokens " The scientific quarterly of legal studies of cyber space, first year, number 1. (In Persian).
Mandel, B., )2009(. Art as an investment and conspicuous consumption good. American Economic
Mazur, M. (2021). Non-fungible tokens (nft). the analysis of risk and return. Available at SSRN 3953535.
Mekacher, A., Bracci, A., Nadini, M., Martino, M., Alessandretti, L., Aiello, L. M., & Baronchelli, A. (2022). Heterogeneous rarity patterns drive price dynamics in NFT collections. Scientific reports, 12(1), 13890.
Mohammadian, A. Manian, A & Khodadad Bormi, M (2014) "Systematic review and the future direction of research in the field of virtual business growth centers "Smart Business Management Studies, 3(12), 123-150.  (In Persian).
Musiala Jr.R. A, Wasick.J. F, Murphy.K. R, Reynolds.V(2022)” An Introduction to Non-Fungible Tokens (NFTs)” Baker & Hostetler LLP, https:// www. Lexology.com/library/detail.aspx?g=105e3874-1c23-4d44-a932-af252 8c88 7 be
Nadini, M., Alessandretti, L., Di Giacinto, F., Martino, M., Aiello, L. M., & Baronchelli, A. (2021). Mapping the NFT revolution: market trends, trade networks, and visual features. Scientific reports, 11(1), 20902.
Nye, E., Melendez‐Torres, G. J., & Bonell, C. (2016). Origins, methods and advances in qualitative meta‐synthesis. Review of Education, 4(1), 57-79.
Osisanwo, F. Y., Akinsola, J. E. T., Awodele, O., Hinmikaiye, J. O., Olakanmi, O., & Akinjobi, J. (2017). Supervised machine learning algorithms: classification and comparison. International Journal of Computer Trends and Technology (IJCTT), 48(3), 128-138.
Piyadigama, D., & Poravi, G. (2022, July). An analysis of the features considerable for NFT recommendations. In 2022 15th International Conference on Human System Interaction (HSI) (pp. 1-7). IEEE.
Popescu, A. D. (2021, May). Non-fungible tokens (nft)–innovation beyond the craze. In 5th International Conference on Innovation in Business, Economics and Marketing Research (Vol. 32).
Review 99(4), 1653–1663.
Sahoo, S., Paul, N., Shah, A., Hornback, A., & Chava, S. (2023). The Universal NFT Vector Database: A Scaleable Vector Database for NFT Similarity Matching. arXiv preprint arXiv:2303.12998.
Sandelowski, M., & Barroso, J. (2006). Handbook for synthesizing qualitative research. springer publishing company.
Sun, K. (2022). Digital Asset Valuation: A Study on Domain Names, Email Addresses, and NFTs. arXiv preprint arXiv:2210.10637.
Taherdoost, H. (2022). Non-Fungible Tokens (NFT): A Systematic Review. Information, 14(1), 26.
Teshirogi.K(2022)” Mechanism of NFT and legal issues related to NFT transactions” Oh-Ebashi Newsletter Vol.51
Tong, A., Sainsbury, P., & Craig, J. (2007). Consolidated criteria for reporting qualitative research (COREQ): a 32-item checklist for interviews and focus groups. International journal for quality in health care, 19(6), 349-357.
Vartanian, P. R., de Moura Jr, Á. A., Racy, J. C., & Neto, R. S. (2023). Non-Fungible Token (NFT) Prices, Cryptocurrencies, Interest Rate and Gold: An Econometric Analysis (Jan. 2019-Aug. 2022). International Journal of Economics and Finance, 15(1), 1-1.
Volovyk, I (2022)” А PRICING OF DIGITAL COLLECTIBLES: AN EMPIRICAL EVIDENCE OF NFT VALUATION” A thesis submitted in partial fulfillment of the requirements for the degree of MA in Economic Analysis, Kyiv School of Economics
Wang, Q., Li, R., Wang, Q., & Chen, S. (2021). Non-fungible token (NFT): Overview, evaluation, opportunities and challenges. arXiv preprint arXiv: 2105.07447.
Wang, Q., Li, R., Wang, Q., & Chen, S. (2021). Non-fungible token (NFT): Overview, evaluation, opportunities and challenges. arXiv preprint arXiv :2105.07447.
Wang.X(2023)” How should NFT be valued?” BCP Business & Management, Volume 36 (2023)
Wu, Y., & Zhou, X. (2010). VAR Models: Estimation, inferences, and applications. Handbook of Quantitative Finance and Risk Management, 1391-1398.
Yousaf, I., & Yarovaya, L. (2022). The relationship between trading volume, volatility and returns of non-fungible tokens: evidence from a quantile approach. Finance Research Letters, 50, 103175.
Zhang, Z. J. (2023). Cryptopricing: Whence comes the value for crypto currencies and NFTs? International Journal of Research in Marketing, 40(1), 22-29.‏
Zheng, X. (2022, October). Multimodal Learning for Improved NFT Price Prediction. In 2022 IEEE International Conference on e-Business Engineering (ICEBE) (pp. 74-79). IEEE.

Files

History

  • Receive Date: 06 December 2023
  • Revise Date: 12 March 2024
  • Accept Date: 01 June 2024

Share

How to cite

Statistics