Talking about the metaphysics of NFT rarity

When we buy NFTs, some pure financial investors will choose to “sweep the floor”, order the price directly from Low to High, buy the lowest price in bulk, and wait for the floor price to rise. While more ordinary people buy Avatar to make their own avatar, they will consider many comprehensive elements, and want to buy a “good-looking”, “cost-effective”, “the cheapest among rare”. 

In this decision-making process, investors generally refer to rarity ranking websites, such as Rarity Tools, Rarity Sniper, HowRare.is, NFTGO, etc. These sites will rank all the individuals in the NFT series and disassemble and score the rare elements of each NFT.

When we say that, the truth seems obvious: the more rare elements an NFT has, the rarer and more valuable it is. 

But in fact, the algorithm of rarity is not so simple. The real circulation value of NFTs is also not completely positively correlated with the so-called rarity score. 

Why does it rank so high?

Let’s take an example. The chart below shows the top 10 rarities of Bored Ape Yacht Club by Rarity Tools.

Talking about the metaphysics of NFT rarity

Are you a little confused when you read it, 2 and 3 don’t look so conspicuous, why are they ranked so high? Let’s expand and take a look at the second-ranked boring monkey.

Talking about the metaphysics of NFT rarity

First of all, Pizza is a rare element, only 0.26% of monkeys have Pizza in their mouths, which is 26, which is understandable.

The next Trait Count represents the number of Properties on Opensea, and this monkey’s is 4. In the monkey’s rarity calculation, the order of the general website is 4, 7, 5, 6. That is, the monkey with the least amount of elements is the rarest, and the one with the most elements is the second rarest. In short, the baldest monkey is worth more than the most elaborately dressed monkey.

Talking about the metaphysics of NFT rarity

In fact, most NFTs also refer to this sorting method. So you can see a lot of simple styles at the front of each collection. This monkey came in second because it had no clothes, no accessories, and a relatively rare background color and eyes.

But for most of the big households who buy high-priced NFTs to show their identity, it may be better to buy this so-called second-ranked monkey than to buy gold skin and laser eyes, these monkeys with dominant elements with high recognition.

In my own words “use rarity on the edge”. For example, the two Azukis ranked 18th and 19th on the ranking website in the picture below, the real market value must be much higher for the latter. Because the Type (race) of the latter is Spirit (soul), this rare element that can be seen ten meters away is definitely more popular than the former.

Talking about the metaphysics of NFT rarity

Liquidity determines whether it is good or bad

In August last year, when the floor price of BAYC was 40 ETH, a friend asked me whether this monkey was “the cheapest among the rarest” and whether it was worth buying. At that time, the listed price of this monkey was 67 ETH.

Talking about the metaphysics of NFT rarity

I quickly reminded him not to buy this because “red hair” is the least popular element of the BAYC community. Although this monkey has some relatively rare elements, none are rare enough. At that time, there were monkeys with “dominant elements” such as gold teeth or rainbow teeth that were listed at the same price. It is better to buy those. 

Another unwelcome element is “Crazy”, which is the monkey’s eye style ranked second in the previous article. It’s hard to answer this if you want to find out why. They are not the worst elements in terms of rarity, they are just aesthetics and values ​​that have long been established by the community.

So when you look at the BAYC floor hanging out, you can always see a lot of pop eyes and red hair.

There are many similar situations, such as in Crypto Punks, women and dark people are always ranked on the floor, but they are not the worst in terms of rarity. This is infuriating, but it also represents the truth of mobility.

The high rarity score of NFT does not mean that it can be sold at a high price or has liquidity.

Changes in market factors

Although NFT has many established community aesthetic tendencies, this will change as more and more newcomers enter the market and they enter the mainstream. 

One of the reasons for the high price of BAYC is the blessing of many stars. And many stars follow the “rich and willful” style, and they don’t need how rare it is.

For example, not long ago, the rapper Eminem bought this BAYC with 123.45 ETH, mainly because it “looks like myself”, according to the rarity ranking of Rarity Tools, this monkey ranked 5325, which is lower than medium, and the floor of BAYC at that time It’s 67 ETH, the monkey is clearly overpriced, but Eminem certainly doesn’t care.

Talking about the metaphysics of NFT rarity

From another perspective, if one day this monkey is sold again, there will definitely be many buyers who will break their heads. After all, this is a monkey blessed by Mr. Mu. The logic is just as famous paintings will also generate premiums because of their former collectors.

After Mr. Mu entered the market, not only did the floor price of BAYC increase by 10 ETH that day, but the value of the white monkey also increased. The reason for the popularity of “star-like models” is also very simple to think about.

The same is true for Curry. The blue monkey was originally an unpopular element in the BAYC community, but because of the admission of NBA superstar Stephen Curry, BAYC ushered in a truly breaking global communication boom. Both Twitter and Douyin have become the most searched list. This little blue-skinned monkey has also become an iconic image. Naturally, the blue-skinned monkey has risen with the tide for a while.

Talking about the metaphysics of NFT rarity

Another interesting example is when the mutation potion is airdropped, the mutation effect of some elements on MAYC also affects the price of BAYC in turn.

For example, before the appearance of mutant monkeys, the element of colored teeth (1%) was not particularly popular, and the price of golden teeth (0.91%) was not as high, but the mutant monkeys of colored toothed monkeys were very beautiful and had outstanding effects. Soaring, surpassing the golden-toothed monkey, which would have been rarer than it.

Talking about the metaphysics of NFT rarity

Having said so much, you probably understand that the rarity of NFTs is really a metaphysics.

To sum up, if you are not a professional investor, I have two suggestions, one is to buy what everyone likes, and the other is to buy what you like.

The former can refer more to historical transaction data to ensure liquidity; the latter has self-comfort when it plummets and returns to zero: at least I think it looks good.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/talking-about-the-metaphysics-of-nft-rarity/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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