How do you price a Punk? An analysis of the first NFT market.

The year of 2021 will be remembered as the year the NFT markets exploded, yet due to its young age little is known on the underlying mechanics behind how this markets work. Thus, purpose of this thesis is to analyze to which extent do the different visual attributes of an NFT impact their valuation. To answer this question, we will be performing the first ever application of the Hedonic model to analyze the valuation of the NFT project Crypto Punks. Due to the novelty of the market, we developed a web scraper to recollect the necessary data and create the unique data set that comprises the different attributes of each Crypto Punk. Through our analysis we found that the valuation of these digital artworks did not solely rely on their scarcity but that there potentially was some cultural biases at play.