NFT, the Non-Fungible Token, is defined as an indivisible, irreplaceable, and unique token. A completely unique chain asset.
SMRA, or Simultaneous Multiple Round Auction, is a Nobel Economics Prize-Winning new auction model that benefits both sellers and buyers.
Here is why I decided to combine NFTs and the SMRA:
NFTs are unique tokens that have two important attributes: They are collectable and have potential investment value.
A Twitter user once asked me: “What NFT should I buy with 30 ETH?” I answered him: “Buy an NFT that you think you can sell for more than 35 ETH after a year, where the more it exceeds your expectation, the better.”
No one can deny they are unaffected by the market prices of their NFTs. It is like witnessing a Cryptopunk get sold for $1.2 million USD and feeling great about the 10 Cryptopunks you purchased at an average price of $5,000, even if the sky-high transaction is not yours.
What is the reason for this feeling? The answer is that the transaction price of a related product gives the public an expectation of how valuable the NFT is, establishing a perceived notion that the NFT/ NFT category is more valuable than another.
However, the fact is that the circulation efficiency and price of your NFT mainly depends on how many people want to get it at a certain price. The general public’s expectations are important, even if they are not offering the highest price. For example, if 1,000 people expect a price of around $50,000 for an NFT, that means there is a big amount of liquidity for the NFT at that price area. This is important for those who are investment-oriented to understand.
For this reason, NFT pricing should not just consider the highest transacted price of an independent English auction, as that price only represents the subjective value of one individual. Not all Cryptopunks can be sold for $1.29 million!
Therefore, PawnHouse will deploy SMRA, the Nobel award winning auction model designed to attract more people to participate in the pricing market, which increases the frequency of pricings. The increased frequency of pricings will then provide sellers with more established highest-selling price information that was derived fairly and accurately. Moreover, the SMRA can also provide high-frequency bidding zones for buyers and those who monitor the asset, which we call a Price Corridor.
Such a large number of participants, together with high-frequency quotation activities can greatly improve the transparency of the public value of assets. For investors to understand the market of a specific NFT/NFT category better, the SMRA will provide real heat maps, price ranges, and range deviations that one can monitor and analyze.
PawnHouse will ensure that the price of an asset will not be influenced by the price of one or two separate transactions!
Healthier and more extensive pricing will fundamentally solve the problem of insufficient liquidity of NFT assets.
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About PawnHouse
The PawnHouse project team combined and applied both the SMRA theory (2020 Nobel Economic Prize) and The Wisdom of Crowds theory to effectively solve the issue of decentralized NFT asset-pricing and improve the liquidity of NFTs.
Due to its unique characteristics, the historical transaction price of NFT is determined by private value. This results in less effective price information and is easier to control. By introducing price proposers to the market, PawnHouse satisfies both common and private values, and provides a comprehensive and rich price collection strategy. While building a price corridor for NFT assets, PawnHouse also supports NFT’s collateralization and auction transactions.
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- Website : https://pawnhouse.io/
- Twitter : https://twitter.com/pawnhouse_nft
- Telegram: https://t.me/pawnhouseofficial
Related news:
- PawnHouse fundraising closed with Huobi Ventures and A&T Capital
- PawnHouse completes $2 million financing round to power NFT pricing solutions
PawnHouse, The World‘s First NFT Oracle
LIQUIDITY | EQUALITY | ACCURACY
