Abstract

With the rapid development of blockchain, Non-Fungible Token (NFT) received many discussions and challenges recently. Rarity Rank is one of its most important features and expresses multiple attributes of unique, special, and scarce to consumers. To explore the impact of rarity awareness, we utilize a quasi-experiment setting in the NFT marketplaces. We find that the PFP with Rarity Rank emergence in Rarible can significantly activate users’ perceived value and accelerate rarity awareness, which results in 11% lower transaction numbers and 8% lower transaction prices on the trading behavior. Furthermore, by the comparison of rarity-level collections, we find the low-rarity collections significantly impact users’ trading behavior which reflects in the reduction in transaction numbers and average prices. However, the high-rarity collections are not significant due to the perceived availability. In conclusion, our results not only extend label awareness in the NFT marketplace but provide many instructions for platform managers and sellers.

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Paper Number 1625; Track Blockchain; Short Paper

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