By: Mayukh Mukhopadhyay, Kaushik Ghosh
Non Fungible Token (NFT) Industry has been witnessing multi-million dollar
trade in recent times. With rapid innovation of the NFT market environment by
technology, innovation, and decentralization, it is becoming hard to
distinguish between genuine NFT from fads and scams. This article discuss the
NFT market microstructure, with a focus on price formation, market structure,
transparency, and applications to other financial areas. Market ma... more
Non Fungible Token (NFT) Industry has been witnessing multi-million dollar
trade in recent times. With rapid innovation of the NFT market environment by
technology, innovation, and decentralization, it is becoming hard to
distinguish between genuine NFT from fads and scams. This article discuss the
NFT market microstructure, with a focus on price formation, market structure,
transparency, and applications to other financial areas. Market manipulation in
NFT market with the context of wash-sale patterns has also been surveyed. The
article concludes by providing pointers on due-diligence activity that can be
adopted by investors to mitigate NFT trading risk.
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