What is the NFT floor price? Explain the NFT floor price in an easy-to-understand way

NFT floor price refers to the lowest price in the NFT market, also known as the floor price or the lowest transaction price. It represents the minimum price threshold when purchasing or trading NFTs. If the price of an NFT is below the floor, then it may become an attractive trading option. In layman's terms, just like discounted goods in a mall, goods priced below the floor price are often more attractive because they are relatively cheap. The NFT floor price is of great significance to both buyers and sellers, and it can affect market liquidity and price trends. For those who want to enter the NFT market, it is very important to understand the NFT floor price.

#What does the NFT floor price mean?

NFT means the abbreviation of Non-Fungible Token, which is translated into Chinese as "non-fungible token". In terms of nature, it is also a type of cryptocurrency, but its main purpose is It is not used as a currency to pay, but to represent a certain piece of digital data, such as pictures, videos or sounds, etc. In addition, when NFT is "minted", it has actually been generated through smart contracts on the blockchain. Given its unique characteristics, it cannot be compared with another NFT, nor can it be split into smaller units. This is the "non-fungible" characteristic of NFT, and even if it is two identical digital data, according to Depending on the serial number or owner, the value may vary greatly.

From the perspective of profit, the NFT project party will not only issue one NFT, but will launch an entire series, and then use algorithms to assign different attributes and appearances to the series of NFTs, allowing buyers to both It can obtain a unique image and form a unique group by holding the same series of NFTs. The well-known CryptoPunks is the best example. In the secondary market, even the same series of NFTs have high and low prices. The lowest price is called the floor price. Although it can be regarded as a reference indicator to judge the value of NFT, it is also It may change due to investors' operations.

NFT project process

When the project party decides to issue NFT, it will reveal the date and time for NFT purchase and the expected number of NFT to be released through the official website, so that interested buyers can You can prepare in advance. The moment it is opened is the "Drop", which means that the NFT is minted and put on the market for the first time. The price of the NFT at this time is set by the project party or creator, so it is usually quite cheap. However, most Drops will be issued in limited quantities and limit the number of purchases to avoid being swept away directly by speculators. There is also a form of Drop called Open Edition, which means an unlimited amount of NFTs are minted during the launch period until the end of the launch time. The price of such NFTs is usually low and is mostly used for marketing or promoting liquidity in the secondary market.

Airdrop is one of the means used by the project team to promote, which means sending cryptocurrency or NFT to the user's wallet for free as a reward. The purpose is to increase the number of holders and attract people through the release of airdrop news. More people are paying attention to it. Although airdrop is a free channel to obtain NFT, in addition to having a specific delivery time and needing to continue to pay attention to community announcements, due to quantity restrictions, the rights to receive are usually restricted. For example, you need to follow Only by queuing up messages, holding officially designated NFTs, or reaching a certain level in the official community can you qualify for air investment.

Generally speaking, those project parties that have established a certain degree of popularity are the focus of investors. Therefore, the official may not adopt a single pricing method, but sell NFT through auctions, which helps achieve high-price auctions and is also a big help to brands. There are two main auction formats: English auction and Dutch auction, and project parties can choose freely according to their needs. The British auction means that the highest bidder before the auction time ends gets the NFT, while the NFT bid in the Dutch auction will gradually decrease over time, and the first bidder will eventually win the bid.

The above is the detailed content of What is the NFT floor price? Explain the NFT floor price in an easy-to-understand way. For more information, please follow other related articles on the PHP Chinese website!