NFT Projects Have Had a Stellar 2021!
- By Sam van de Schootbrugge
- 7 min read
Summary
• A new working paper by the IESEG School of Management in France examines the risk and return characteristics of the NFT-based start-ups listed on Binance.
• It finds NFTs earn 130% on average on the first listing day, yield an average investment multiple of 40 over the long term, and deliver large alpha and above-average beta.
• The author also explains why the clear-cut solutions NFTs offer will likely lead to higher trading volumes and market expansion in the future.
Introduction
Collins Dictionary recently announced ‘NFT’, an abbreviation of ‘non-fungible token’, as its 2021 Word of the Year. The award captures the meteoric rise in popularity of NFTs this year. In the first half of 2021, NFT sales rose to a record $2.5bn, with the $2.5mn sale of Twitter founder Jack Dorsey’s first tweet leading the way. Unsurprisingly, NFT startups are now springing up.
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