The digital asset manager CoinShares has launched an experimental bot on Twitter that will theoretically allow users to check the estimated market value of certain non-fungible tokens (NFTs), although some have been less than enthusiastic about the estimates made.
The company announced the bot dubbed CoinSharesNFTAI via Twitter on October 13, noting that its algorithm focuses on aggregating different OpenSea datasets to determine the supposed “fair price” of an NFT.
[1/4] We are very excited and proud to announce the official launch of @CoinSharesNFTAI. A simple tweet can let you know how much an NFT might be worth.
— CoinShares (@CoinSharesCo) October 13, 2022
[1/4] We are very excited and proud to announce the official launch of @CoinSharesNFTAI. A simple tweet can let you know how much an NFT can be worth.
In the Twitter thread, CoinShares said, “Valuing NFTs is no easy task” as their value is volatile and there are millions of them available on the market, including those with no trading history.
Some users were less impressed by the NFT value estimates, like Goblin Town NFT hodler systemic_bliss who commented that CoinShares “model sucks” after he priced the NFT he bought for 2,694 Ether (ETH) at just 0.88 ETH. For his part, another said that “it seems to be a bit broken”, since the NFT in question was valued at 0.28 ETH by the bot despite having a minimum of 0.48 ETH and an offer of 0.63 ETH.
Cointelegraph tested the bot using Seth Green’s well-known Bored Ape Yacht Club (BAYC) #8398 NFT.which was recovered by Green in June by paying a $260,000 ransom, as it was stolen by a hacker. The NFT currently has a “best bid” of 70.6 ETH on OpenSea and was valued at $79.65 ETH by the Twitter bot, valued at $106,000 at the time of writing.
There are about 50 NFT projects on OpenSea that are supported at this stage, including top-notch tokens, like BAYC, Goblin Town, Pudgy Penguins and Cool Cats.
All of them appear in the list of available charges this week, which suggests that there is a weekly rotating list of supported charges.
Let’s see what @CoinSharesNFTAI thinks of my gob…https://t.co/bGpAvyO5Ys
— systemic bliss (@systemic_bliss) October 13, 2022
Let’s see what @CoinSharesNFTAI thinks of my gob…
The newly launched bot comes just days after the digital asset manager published a report on building an NFT price index, which its NFT bot is based on. In the report, quantitative trading analysts Yanis Bakhtaoui and Hugo Schnoering noted that:
“ERC-721 tokens are uniquely identified by an id and a set of properties, and cannot be interchangeable or divisible. This property makes these assets difficult to value, as each NFT is unique.”
“These properties make the NFT market inherently illiquid: it is related to supply and demand, and if an owner does not want to sell their NFT, no one will be able to buy it,” they added.
The report also notes that Market manipulation tactics such as “wash trading” – fraudulent transactions designed to inflate prices – have had a key impact on the price of NFTs.
To use the bot, people just need to tweet CoinSharesNFTAI and provide a link to the token on OpenSea. It is not clear if other markets will be supported in the future.
@CoinSharesNFTAI https://t.co/Mk70DncI9K
— Dave Grannan (@grannan) October 14, 2022
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