The way that collectors buy, sell, and exchange trading cards is being redefined by NFT trading cards. Find out how Binance NFT is transforming the collectable card landscape.
Every NFT is distinct and has several qualities that make it unusual or valuable. The precise value of an NFT is also challenging to ascertain due to these characteristics.
Collectors and investors wishing to purchase NFTs may find it difficult to determine whether an NFT is worth their money since unlike tangible assets like artwork or physical collections like playing cards, which have established prices, NFTs do not. NFT measurements, including floor price, are useful in this situation.
What a floor price is, how they’re computed, what to watch out for, and where to locate them on Binance NFT are all covered in this article by our expert on crypto garage.
What Is An NFT Floor Price?
One of the most popular measures used by collectors to assess a project is the “floor price,” which refers to the least expensive NFT within a collection.
For instance, the current floor price for a pair of STEPN x ASICS NFT Sneakers is 14,767.70 USD. This implies that the least expensive way to participate in the project is to purchase a pair of STEPN x ASICS NFT Sneakers, which costs 14,767.70 USD.
How is the Floor Price Calculated?
Owners of NFTs within a project choose floor pricing; as an NFT project gains in popularity, the floor price rises. An NFT project may be losing momentum if the floor price for the project is suddenly reduced.
Are you curious about further NFT assessment metrics? Learn more about How to Determine an NFT’s Value.
What Does Sweeping the Floor Mean In The NFT Space?
Sweeping the floor often refers to purchasing a large quantity of digital assets, particularly those that are a part of a collection.
Sweeping the floor may be used to describe project owners and purchasers in the NFT area. Project owners can buy all of their NFTs at the floor price if they sweep the floor. When purchasers sweep the floor, it either indicates they purchased a large number of the project’s NFTs or all of the ones that were offered. Both of these point to a potential floor price manipulation.
How To Avoid Floor Price Manipulation
Although purchasing the floor may be a good first move for new participants in an NFT project, the floor price is subject to manipulation.
Newly launched NFT ventures with strong potential are sometimes aggressively purchased by an individual or group to artificially inflate demand. Similar to how ticket scalpers buy event tickets and then resale them at a higher price, the buyer(s) can sell these just obtained NFTs at a higher floor price after the sweep. Be cautious of projects where the NFTs have been “swept” that lack large communities. In situations like those, the project may have set up a sweep to increase the floor price and total worth of the collection.
Always study the transaction history of the NFT you intend to acquire and DYOR to determine the project’s long-term worth to prevent falling victim to floor pricing that have been influenced by a sweep. Join their Discord and Telegram groups and determine whether their communities, such as their social media following, are reliable to aid in making decisions about NFT investments.
Check out our post on Common NFT Scams & Safety Tips 2022 to understand how to avoid falling victim to NFT scams.
Where Can You Check The NFT Floor Price Chart & History On Binance NFT?
There are two simple approaches to find the floor price of an NFT collection on the Binance NFT Marketplace. The Top Collections section of Ranking offers a list of popular NFT collections along with their floor prices.
Simply type the name of the NFT collection in the search field to get the floor price of a certain collection, and the price will be plainly shown at the top. The percentage change on the Binance NFT marketplace also displays real-time changes in the floor price.
The value of NFTs is essentially determined by market forces, and it is hard to forecast with precision what will happen to the NFT market in the future. However, employing criteria like floor price and performing your due diligence to inform your purchase plan can boost your chances of success.
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