Work detail

Non-Fungible Tokens (NFTs): A hype or hope? Analysis of random NFT portfolios

Author: Bc. Ana Iordosopol
Year: 2023 - winter
Leaders: prof. PhDr. Ladislav Krištoufek Ph.D.
Consultants:
Work type: Bachelors
Language: English
Pages: 72
Awards and prizes:
Link: https://dspace.cuni.cz/handle/20.500.11956/179152
Abstract: This thesis reflects on the newly emerged alternative asset class of non-fungible tokens (NFTs).
We perform both qualitative and quantitative analyses on the matter. In the empirical part, we
construct different types of random portfolios to investigate the performance of cryptocurrencybased portfolios after the possible inclusion of NFTs in such. Our results suggest that as of the
end of 2022, portfolios of Bitcoin and Ether perform better without NFTs, thus rejecting the
previous assumptions of limited diversification potential of NFTs, which was detected during
the last crisis period during the COVID-19 pandemic. The qualitative analysis on the topic,
however, suggests that NFTs are not just the hype and the innovative blockchain solutions that
NFTs represent may be of greater use in the near future. Therefore, despite of non-efficiency of
NFTs as a financial asset in 2022, they still display significant potential as a disruptive
technology.

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Deloitte
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CRIF
McKinsey
Patria Finance
EY