NFT Art NFT Marketplaces and Trading 4

Question 1

What is 'wash trading' in NFT marketplaces, and why is it problematic?

Accepted Answer

Artificially inflating an NFT's trading volume by buying and selling to oneself

Answer

Wash trading involves a user selling NFTs to wallets they control to fake trading activity, artificially inflating perceived popularity and value.

Question 2

Which NFT marketplace launched its own token ($BLUR) and used token rewards to incentivize trading volume?

Accepted Answer

Blur

Answer

Blur launched the $BLUR token and distributed rewards to traders, rapidly capturing significant market share from OpenSea.

Question 3

What does 'provenance' mean when evaluating an art NFT's value on a marketplace?

Accepted Answer

The verified ownership history and origin of the NFT

Answer

Provenance refers to the documented history of an NFT's ownership, including the original creator and all subsequent owners, which is permanently recorded on-chain.

Question 4

On most NFT marketplaces, what is the typical range for creator royalties on secondary sales?

Accepted Answer

2.5% to 10%

Answer

Creator royalties on secondary NFT sales typically range from 2.5% to 10%, with 5-10% being most common for art NFTs.

Question 5

What is a 'bundle sale' on an NFT marketplace?

Accepted Answer

Selling multiple NFTs together as a package for a single price

Answer

A bundle sale allows sellers to group multiple NFTs together and offer them as a package deal for a combined price.

NFT - Art Practice Test

NFT - Art Practice Test

NFT Art NFT Marketplaces and Trading 4