Valuing NFTs — An Abstract Framework

Valuing an NFT is a challenging process. Particulary something that’s part of Internet History — such as meme or a viral video.

Sometimes, it’s the story that resonates and connects emotionally. Other times it’s hard calculated numbers using sophisticated modeling techniques.

A simple lens is developed to ensure the collectible passes these basic filters. Viewing valuation through these 3 qualitative lens — the DAAC model— Digital Art, Asset, & Collectible, is a good start.

Ask yourself:

1. Is it high-end Digital Art — was the piece created using propreitary digital tools and techniques?

2. Is this a Digital Asset — was the viral appreciated by audiences, how big of a viral hit, received press/awards etc.?

3. Is this piece a Digital Collectible — did it strike a chord with you? Will buying (+ holding) this moment in time appreciate in the long run and why?

From our perspective, most NFTs check off one or two of the three. The rare ones does all three!