The nexus between non-fungible tokens (NFTS) and cryptocurrencies

IF 1.5 Q3 MANAGEMENT Human systems management Pub Date : 2023-03-03 DOI:10.3233/hsm-220196

İbrahim Dağlı, Ceren Pehlivan, Ferhat Özbay

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Abstract

BACKGROUND: Like Bitcoin or any other cryptocurrencies, non-fungible tokens (NFTs) count on blockchain technology, and NFTs are the latest and the most popular in a series of blockchain solutions. Traders in this ecosystem need to pay a dynamic fee, called a gas fee, for making any transactions on the Ethereum blockchain. The gas fee is measured by gwei, and traders must consider this as an additional cost. So, the current price of this fee may affect the decision of NFT creators or traders. OBJECTIVE: This study investigates the interrelationships between NTFs, cryptocurrencies (Ethereum and BTC), and gas fees using daily market data from January 2019 to November 2021. METHOD: Fourier Shin’s (2016) cointegration test, Fully Modified Ordinary Least Squares, and Group Dynamic Least Squares tests were employed to analyze the data. Then, the variance Decomposition method was applied to determine what other variables explain the percentage of the total variance on NFTs— it also used Impulse-response functions for measuring the response of the NFTs variable for one standard deviation shock. RESULTS: Results show that an increase in gas fees, the daily volume of Bitcoin, and the daily volume of Ethereum decrease NFTs sales. There is a unidirectional relationship between lnSales and lnGasFee variables. Also, there is a determined unidirectional relationship between lnBTC and lnSales variables. Lastly, there is a one-way causality relationship between lnSales and lnETH variables. CONCLUSIONS: The primary causation of the relationship between NFTs, gas fees and Ethereum fees is most likely related to the use of Ethereum as the primary means of payment in the NFTs market and gas fees being a significant cost element in NFTs trading. Another point of view is that the dominance of Bitcoin in the market is very effective in pricing of other cryptocurrencies and in the sales and pricing of NFTs indirectly. It is supported by empirical findings that the main elements in the blockchain ecosystem are interrelated.

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不可替代代币（NFTS）和加密货币之间的关系

背景：与比特币或任何其他加密货币一样，不可替代代币（NFT）依赖于区块链技术，而NFT是一系列区块链解决方案中最新、最受欢迎的。这个生态系统中的交易者在以太坊区块链上进行任何交易都需要支付一笔动态费用，称为汽油费。天然气费用由gwei计量，贸易商必须将其视为额外成本。因此，该费用的当前价格可能会影响NFT创作者或交易员的决定。目的：本研究使用2019年1月至2021年11月的每日市场数据调查NTF、加密货币（以太坊和BTC）和天然气费用之间的相互关系。方法：采用傅立叶-申（2016）协整检验、全修正常最小二乘检验和群动态最小二乘检验对数据进行分析。然后，应用方差分解方法来确定哪些其他变量可以解释NFT总方差的百分比——它还使用脉冲响应函数来测量NFT变量对一个标准差冲击的响应。结果：结果显示，汽油费、比特币日交易量和以太坊日交易量的增加降低了NFT的销售额。lnSales和lnGasFee变量之间存在单向关系。此外，lnBTC和lnSales变量之间存在确定的单向关系。最后，lnSales和lnETH变量之间存在单向因果关系。结论：NFT、天然气费用和以太坊费用之间关系的主要原因很可能与以太坊作为NFT市场的主要支付手段的使用有关，而天然气费用是NFT交易中的一个重要成本因素。另一种观点是，比特币在市场上的主导地位在其他加密货币的定价以及NFT的间接销售和定价方面非常有效。经验发现支持区块链生态系统中的主要元素是相互关联的。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Human systems management MANAGEMENT-

CiteScore

3.50

自引率

30.40%

发文量

期刊介绍： Human Systems Management (HSM) is an interdisciplinary, international, refereed journal, offering applicable, scientific insight into reinventing business, civil-society and government organizations, through the sustainable development of high-technology processes and structures. Adhering to the highest civic, ethical and moral ideals, the journal promotes the emerging anthropocentric-sociocentric paradigm of societal human systems, rather than the pervasively mechanistic and organismic or medieval corporatism views of humankind’s recent past. Intentionality and scope Their management autonomy, capability, culture, mastery, processes, purposefulness, skills, structure and technology often determine which human organizations truly are societal systems, while others are not. HSM seeks to help transform human organizations into true societal systems, free of bureaucratic ills, along two essential, inseparable, yet complementary aspects of modern management: a) the management of societal human systems: the mastery, science and technology of management, including self management, striving for strategic, business and functional effectiveness, efficiency and productivity, through high quality and high technology, i.e., the capabilities and competences that only truly societal human systems create and use, and b) the societal human systems management: the enabling of human beings to form creative teams, communities and societies through autonomy, mastery and purposefulness, on both a personal and a collegial level, while catalyzing people’s creative, inventive and innovative potential, as people participate in corporate-, business- and functional-level decisions. Appreciably large is the gulf between the innovative ideas that world-class societal human systems create and use, and what some conventional business journals offer. The latter often pertain to already refuted practices, while outmoded business-school curricula reinforce this problematic situation.