Digital art and non-fungible-token: Bubble or revolution?

Boido, Claudio; Aliano, Mauro

doi:10.1016/j.frl.2022.103380

Cited by 21 publications

(6 citation statements)

References 10 publications

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“…From the perspective of accounting, NFTs are to be treated as intangible assets and accounted for using historical cost (indefinite useful lives) less potential impairment, but without the option of revaluation [25,44]. This solution is compliant with the prudence principle in accounting, considering that NFTs are traded on high-volatility markets [70].…”

Section: Non-fungible Tokens (Nfts)mentioning

confidence: 99%

Recognition and Measurement of Crypto-Assets from the Perspective of Retail Holders

Dragomir,

Dumitru

2023

FinTech

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The Markets in Crypto-Assets (MiCa) Regulation of the European Union is the first comprehensive piece of legislation that seeks to protect the interests of investors in the crypto-assets sector. Although the market value of crypto-assets is significant at world level, there is a lack of clear regulatory guidelines regarding the recognition, measurement, and presentation of crypto-assets in the financial statements of investors. Considering that not all digital assets are the same, retail holders need to take into account the characteristics, rights, and obligations associated with the crypto-assets they purchase to determine the appropriate accounting method. Therefore, the research question of the present article is: Which are the main types of crypto-assets and how should they be recognized and measured in the financial statements of investors and holders? We perform a review of the accounting policies and options, relying on relevant regulations, standards, regulatory drafts, legal and academic papers, recommendations of market regulators, crypto-asset white papers, industry opinions, and media articles. There are different accounting treatments that can be applied, depending on the legal and technological aspects of each class of crypto-assets. Based on a critical discussion of accounting policies and options, our research has implications for accounting professionals, but also for standard setters, who are urged to provide clear guidelines. Identifying the key economic characteristics of each asset and determining the most appropriate way to recognize these characteristics in the financial statements are crucial for the development of a functional and trustworthy market in crypto-assets.

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Section: Non-fungible Tokens (Nfts)mentioning

confidence: 99%

Recognition and Measurement of Crypto-Assets from the Perspective of Retail Holders

Dragomir,

Dumitru

2023

FinTech

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“…Various marketplaces, industry experts, and researchers have proposed different taxonomies to classify NFTs based on their unique attributes and characteristics. The taxonomy proposed by http://NonFungible.com is one of the most widely recognized and used by researchers and practitioners alike (Boido & Aliano, 2023; Dowling, 2022; Kong & Lin, 2021; Nadini et al., 2021). One of the advantages of using NonFungible ’s taxonomy is that it provides a clear and concise way of categorizing NFTs into five primary categories within the digital asset ecosystem.…”

Section: Exploring the Nft Chronicle: Categories And Propertiesmentioning

confidence: 99%

Non‐Fungible Tokens (NFTs): A Review of Pricing Determinants, Applications and Opportunities

Kräussl,

Tugnetti

2023

Journal of Economic Surveys

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This paper provides a review of the development of the non‐fungible tokens (NFTs) market, with a particular focus on its pricing determinants, its current applications, and its future opportunities. We investigate the current state of the NFT markets and highlight the perception and expectations of investors toward these products. We summarize and compare the financial and econometric models that have been used in the literature for the pricing of non‐fungible tokens with a special focus on their predictive performance. We design a framework that can help to understand the price formation of NFTs. We further aim to shed light on the value‐creating determinants of NFTs in order to better understand investors’ behavior on the blockchain.

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“…There are no signs that interest in NFTs will abate in 2022. Many HNW investors are interested in purchasing NFT-based artworks even in the future (Boido & Aliano, 2023). On the other hand, there are also negatives associated with NFT ownership, such as the quality of ownership.…”

Section: Nfts and Wash Tradingmentioning

confidence: 99%

Non-Fungible Tokens and the Threat of Wash Trading

Tichý

2023

Liberec Economic Forum 2023

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Non-fungible tokens are a revolutionary concept that combines art, authenticity, proof of ownership and enables large-scale commerce. Their value does not come from their use in financial transactions, but from the fact that they are linked to specific assets, whether digital or real. Non-fungible tokens thus represent a new driving force in the areas of digital ownership. Owners of these tokens can earn huge sums at a time when the art market is on the verge of revolution. The non-fungible token market experienced enormous growth in 2021 with traders investing a huge amounts of billions of dollars worth of cryptocurrencies into digital collectibles. Since 2021 the transaction activity in this area cooled, although the number of active investors continued to grow in 2022. While the popularity of certain non-fungible token collectibles can fluctuate depending on market conditions, some traders may try to manipulate the prices of certain non-fungible tokens to make them appear more valuable. The token will be sold at a higher price to a new wallet, which is also controlled by the original owner. Transactions between wallet addresses are saved on a blockchain and can be accessed publicly, so that anyone can see when the token was traded and for how much it was sold. However, wallet addresses contain no identifying information making it very difficult to discern who is behind a transaction and whether two addresses are owned by the same individual. This process is called wash trading and its analysis is a goal of this contribution.

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Digital art and non-fungible-token: Bubble or revolution?

Cited by 21 publications

References 10 publications

Recognition and Measurement of Crypto-Assets from the Perspective of Retail Holders

Recognition and Measurement of Crypto-Assets from the Perspective of Retail Holders

Non‐Fungible Tokens (NFTs): A Review of Pricing Determinants, Applications and Opportunities

Non-Fungible Tokens and the Threat of Wash Trading

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