NFT Floor Price and What You Need To Know

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NFTs are not traded like our regular tokens or coins where you can just place a sell order and the NFT is sold immediately to the open market with the current market price. They are sold differently, their owners Place the price they want to sell it on the NFT and wait for a buyer who is ready to buy it at that price, accept the price order and pay for it. But who then determines the price of the NFT? NFTs are unique, they are priced based on their unique attributes called rarity. But just like we have quality assets they are still assets that are still priced lower than others, in the case of NFTs we know that price to be the floor price.

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In an NFT community, the people determine the value of the NFTs with their demands. You must have heard it somewhere that people drive demand and value to an asset, so it is in the NFT community. If people don’t demand for NFTs and are ready to pay for it, the NFT will have no value no matter how beautiful you think it is.

If you go to NFT collection one of the things you will notice is the floor price. The name floor price means, the cheapest price you can get an NFT in this collection. Is like going to an Apple stop and asking for the cheapest iPhone, if they say the cheapest iPhone is $150 that is the floor price of iPhone in that store. So floor price in NFT is the cheapest or lowest or least price you can get an NFT in an NFT collection.

How Are Floor Prices Determined ?

When you go to an Apple store and you ask for the cheapest iPhone and they show you an iPhone worth $150, it gives you options and idea of what others could be. So now you have the cheapest option to be $150, but what if you had $500 with you, what if you don’t like the cheapest option and you want to go for something much more better than the cheapest option. That’s how NFT collectors feel while going for NFT shopping.

Floor price is not set by the devs, it’s set by the people who own the NFTs, they are the one that determine what the floor price of an NFT in a collection would be. If you check NFT collections or observe it, NFT floor prices tend reduce when there is FUD or low attraction. People start getting desperate by listing their NFT far lower and cheaper so that they can get sold easily.

But when the NFT collection starts getting some attraction, the floor price increases, that time people start feeling like their NFT is valued more and they want more money for it, so they increase the price.

Manipulation Of Floor Price

The whole financial space is game for the rich, where they manipulate the market to theirselves. Even in the NFT space, manipulation can be found and it’s called sweeping the floor. When NFT owners in the collection start having doubts based on low attraction and start listing their NFTs way lower the floor price, some specific investors can come and buy all the low priced NFTs to create a demand and give it a little attraction.

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8 comments
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I have never heard of floor prices before, I am glad this NFT talk of yours has introduced me to it today.

I am still somehow blank when it comes to NFT though.. right now, I don't even know how to initiate a sell. Talk more of a pulling off a floor price.

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Lol, it’s a gradual process, if you learning you will get there. Thanks a lot for stopping by.

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(Edited)

Yes, I am getting. Thanks for your support too. ❤️

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When NFT owners in the collection start having doubts based on low attraction and start listing their NFTs way lower the floor price, some specific investors can come and buy all the low priced NFTs to create a demand and give it a little attraction.

Yeah people panic sell and investors sweep them to sell higher at later price. I’ve not ventured into mainstream NFT’s yet but I hear people have fun flipping them

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Jesus!! Is now I am getting to understand this floor price thing. I thought it's something determine by the devs. Thanks so kindly for this information.

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Most of the people jumping in just want to resell the NFTs for a higher price. I know places like WAX allow you to back NFTs with WAX and NFTs with utility should also have value. Other than that, I would expect the floor price to be zero.

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