How to measure the rarity of your NFT? A tool helps you answer this question

Not all non-fungible tokens (NFTs) are the same. Some have unique characteristics that are not commonly shared. Sometimes collectors come across these nuggets and want their value to reflect that. However, it can be difficult to distinguish rare tokens from regular tokens.

Now, having said that, classifying non-fungible tokens has become easier on OpenSea with the launch of a new tool called “OpenRarity”. The American market has thus described its new factor as “rarity”, a method that standardizes unique digital images.

NFT for the private collector

In a post, OpenSea explained: “The ‘scarcity’ ranking allows us to describe the relative scarcity of attributes of a non-fungible token compared to another in the same collection.”

“An NFT with rare attributes will have a lower rarity rank (such as 1 or 2) than an NFT that shares attributes with thousands of others in the collection,” he added.

Scarcity has a strong correlation with value. This is why exclusivity is an important factor for NFT collectors. In the absence of a standardized ranking mechanism, however, it is difficult to determine the exclusivity of the characteristics of one non-fungible token compared to another.

According to OpenSea, this has created a chaotic situation. “When rarity rankings vary from platform to platform and use different methodologies, it can confuse buyers and sellers and complicate the use of the rarity factor for buying and selling decisions.”

The aim would therefore be to create “a unified, open, transparent and repeatable standard for the ranking of rarities in the NFT sector”.

Why classify your NFT?

OpenRarity is a joint venture between OpenSea, icy.tools, Curio and PROOF. Its users have the possibility to indicate if their collections are rare or not. A collection that opts for this option will have to display a number marking its rarity rating on the item page as well as on its collection page.

According to OpenSea, this classification is critical in interoperable markets, where different NFTs can be traded.

The platform explained: “If you hover over the numbers, you will see the percentage ranking. OpenRarity’s rarity ratings directly reflect the attribute data posted by the creator and can change over time if the creator makes changes to the item’s metadata.

Pudgy Penguins, one of the first NFT collections available on OpenRarity, listed 8,888 non-fungible tokens of various attributes. According to a description of the collection on Rarity Tools, Pudgy “embodies love, empathy and compassion”.

It is this description of a “source of good vibes and positivity for all. Each owner gets exclusive access to experiences, events, IP licensing opportunities and more. “

As of Friday, September 27, Pudgy Penguin’s low price averaged 3.8 ETH, or around $ 4,900, down 2.7% from the day. According to data from NFT Floor Price, the collection recorded sales of 66 ETH (approximately $ 86,000) in the past 24 hours, down 30% from the previous day.

Cool Cats, another collection, has 9,999 non-fungible tokens randomly generated on OpenRarity. According to its concept, its holders can participate in exclusive events such as free NFT requests, sweepstakes or even community gifts, among others.

At the time of writing, Cool Cats is selling at an average price of 2.95 ETH (~ $ 3,800) each, up 7.2% in the previous 24 hours, with volume at 96.89 ETH (approximately $ 126,000). ).

Scarcity, a magic formula?

However, a recent study by the Stevens Institute of Technology found that scarcity may not be the magic bullet for NFTs. In fact, according to this study, there are several potential drawbacks.

Jordan Suchow, a cognitive scientist who led the study, warned that the hype about rare non-fungible tokens needs to be managed, as collectors can end up getting bored.

“Knowing that NFT trading data is public gives us a great opportunity to examine why people perceive value for certain things and how this changes over time,” said Suchow.

Mr. Suchow studied the Bored Ape Yacht Club collectors and observed a decline in interest in these NFTs over time.

A monkey token wearing accessories is considered rare, compared to a more soberly dressed NFT monkey. It can be interesting at first, says Suchow, but as the collection grows, the monkeys can end up looking the same.

“It’s a bit like a collection of stamps: the stamps all look alike. So if there is a misprint or some other rare feature that sets a stamp apart from others, people will pay a lot more to acquire it, ”she explains.

“Today, a newcomer to the Bored Apes trade sees these rare monkeys everywhere and perceives them as much more common than they really are.”

Jordan Suchow added:

“If anyone wants to know what a dog is, they can go to a dog park and see several common animals. On the other hand, going to an experimental breeder and looking at only rarer breeds would distort his perception of a particular dog’s type and value. “

The scientist therefore concludes that the scarcity factor could become counterproductive, as it would discourage the trade of the most common coins that make up the bulk of the market.

The concept is not new

Scarcity is not a new concept. In traditional art and music, for example, there are so-called “collectibles”, which are not designed for the mainstream market.

Hip-hop group Wu-Tang Clan, for example, sold the single copy of their album “Once Upon A Time In Shaolin” to a crypto group like NFT, for a value of around $ 4 million. The content of the album is not yet available to the public.

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