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Valuation and Rarity Traits Flashcards

7 cards from real NFT practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Valuation and Rarity Traits flashcards as text

  1. What does a 'trait floor price' refer to in NFT collections?

    Answer: The lowest price for NFTs sharing a specific rare attribute

    Trait floor price is the lowest available asking price among all NFTs in a collection that share a particular attribute or trait.

  2. Which factor most directly reduces an NFT's rarity score in a generative collection?

    Answer: Having a high number of common trait combinations

    A rarity score decreases when an NFT possesses trait combinations that appear frequently across the collection, making it less statistically unique.

  3. What is 'normalized rarity scoring' used for in NFT analytics?

    Answer: Adjusting trait rarity scores so all traits contribute equally regardless of category size

    Normalized rarity scoring balances the weight of each trait category so that categories with many options don't unfairly dominate the overall rarity calculation.

  4. An NFT artwork sells for significantly above its collection's floor price. What does this premium most likely indicate?

    Answer: The NFT has desirable rare traits or provenance that collectors value

    Sales well above floor price typically reflect rare traits, historical significance, or provenance that makes the specific NFT more desirable than average collection pieces.

  5. What is a '1/1' NFT in the context of digital art valuation?

    Answer: A completely unique, one-of-a-kind artwork with no editions or duplicates

    A 1/1 NFT is a singular, unique artwork with no other copies or editions, making it analogous to a one-of-a-kind physical painting.

  6. How does 'wash trading' distort NFT valuation data?

    Answer: It artificially inflates trading volume and price history through self-dealing transactions

    Wash trading involves buying and selling an NFT between controlled wallets to create artificial volume and price history, misleading other investors about true demand.

  7. Which rarity tool metric calculates the statistical uniqueness of an NFT by multiplying the inverse frequency of each trait?

    Answer: Rarity score

    Rarity score is calculated by multiplying the inverse frequency (1 divided by the trait's occurrence rate) of each attribute an NFT possesses across the collection.