New Twitter bot aims to determine a ‘fair price’ on NFTs 

The CoinShares’ algorithmic bot focuses on aggregating different data sets from OpenSea to determine the allegedly “fair price” of an NFT

NFT bot

Source: depostiphotos.com

Digital asset manager CoinShares has launched an experimental Twitter bot CoinSharesNFTAI that theoretically enables users to check the fair market value of specific nonfungible tokens (NFTs). The bot’s algorithm uses aggregated data sets from OpenSea to determine the NFT value.

Many crypto users have already given a new service a try. Some of the bot’s answers were quite close to actual pricing/bids. Several participants didn’t display enthusiasm, though, as the estimates given were not fair, in their opinion. 

There are around 50 NFT projects on OpenSea supported by CoinSharesNFTAI at this stage, including blue chips such as the BAYC, Goblin Town, Pudgy Penguins and Cool Cats. All of them are listed under the collections available this week, suggesting the list of supported collections will change weekly. 

The newly launched bot comes shortly after the digital asset manager published a report on constructing an NFT price index, which became the basis for the NFT bot itself. In the report, quantitative trading analysts Yanis Bakhtaoui and Hugo Schnoering noted that the NFT market is inherently illiquid due to the unique properties of these digital assets. As ERC-721 tokens are not interchangeable or divisible, they are hard to price. Besides, market manipulation tactics such as wash trading (fraudulent transactions designed to pump prices) may impact NFT pricing. 

Therefore, CoinShares has created a solution for the supposedly objective evaluation of the digital token. 

To use the bot, people need to tweet CoinSharesNFTAI, providing a link to the NFT token on OpenSea. There is no information about plans to expand the service support to other marketplaces. 

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