CoinShares Releases AI Bot to Calculate NFT prices
Europe’s crypto platform CoinShares has developed an AI bot to determine a fair price on NFT. The project, dubbed CoinSharesNFTAI, is currently under testing and aimed at estimating the most popular collections on OpenSea.
To get started, a user has to get an OpenSea link of the specific token, tweet at it, and tag the bot. CoinSharesNFTAI will process different data sets and provide the user with an estimated NFT price.
“Pricing NFTs is no easy task. Their value is volatile and millions of them are available on the market, from established projects like Bored Ape Yacht Club to more obscure artists with no trading history”, stated CoinShares.
CoinSharesNFTAI uses proven mathematical concepts to calculate a fair price on NFT that are currently available on OpenSea. No matter if the token is owned by the user or not. This tool will be handy for buyers who are just looking at NFTs.
The project’s algorithm is built upon the hedonic model and generates a price index from thousands of transactions. The bot uses official Opensea API to get information about the past sales of popular NFT collections.
The list of available projects for pricing will be updated every week. Until Oct 16th, this include Blue Chip collections such as Bored Ape Yacht Club, CryptoPunks and others. In the future, the developers also intend to add a number of permanent NFT projects.
CoinShares notes that the price of some tokens might seem unreasonably low. However, a detailed analysis of the algorithm shows that the figures obtained have nothing strange.
The bot considers a lot of factors, focusing on hype, rarity, and real-world utility. CoinSharesNFTAI offers a fair price based on complex mathematical calculations such as counting followers, value, and transaction volume. Though, it may differ from sentiments on social media or data offered by analysts and marketer researchers.
Given this feature, CoinShares representatives recommend using the bot as an additional tool “to experiment with NFTs and your collection.”