CoinShares Launches Twitter Bot to Price NFTs

CoinShares, a digital asset manager, has found a good use for Twitter bots with the launch of a pricing algorithm dubbed CoinSharesNFTAI or @CoinSharesNFTAI.

Leveraging its crypto and quantitative expertise, CoinShares developed the tool to give traders a fair price for specific NFTs. The pricing algorithm tool filters through several data to give a price estimate for NFTs listed on OpenSea – the largest NFT marketplace.

Using mathematical concepts and other factors that include rarity, hype, exclusiveness, transaction volume, contents, and history, to predict a fair price for a specific NFT. The tool aggregates data and tells users at what price an NFT could be bought or sold.

This pricing algorithm eases the difficulty associated with pricing NFTs as some attributes are easily quantifiable while others are very much abstract. To use the tool, traders have to tweet at “@CoinShharesNFTAI” with the OpenSea link of the NFT they would like to know the price. The bot then replies with a price estimate in less than a minute according to the asset manager.

According to CEO Jean-Marie Mognetti, CoinShares plans to make the NFT space which is the newest asset class in the crypto market more transparent. For now, the tool will provide its pricing estimates for limited NFT collections and will update the list of supported collections on a weekly basis.

Other than helping traders fairly price NFTs, CoinShares is in no hurry to enter the NFT marketplace yet “We do not have a strategic plan for NFT assets other than this experimental activation,” CoinShares said.

The Downside of the bot tool

At the moment, the pricing tool only supports OpenSea leaving out other NFT marketplaces. Users could also abuse the tool to gather information about their NFTs and then change the selling price of the NFT.

Recall that Elon Musk had earlier threatened to back out from the deal to acquire Twitter on account of the number of bot accounts on the social networking platform. The billionaire has now agreed to purchase Twitter for the original $54.20 per share.

Bots are often used maliciously to promote scams or spread fake news.