We get it, you don't have diamond hands! 🙌💎 But, are you undercutting? Paperhanding? We made this little guide to help you understand floor pricing from a brand-new perspective.
You don't want to hold on forever to tokens. Maybe you stop believing in the project, or just want to flip it for some liquidity and hop on to next project that caught your eye.
So, how should I price my NFT?
First things first... I won't be addressing rarity on this post. Rarity is measured by objective, but questionable algorithms. Also, the new meta seems to have all (or most of) the collection NFTs look and feel unique, to keep flippers away and carry value to holders.
This is a guide more suitable for common (non-rares) tokens and pre-reveal trades. It will also be useful for short-term flippers.
Floor-price is dictated by FUD: Fear, Uncertainty and Doubt.
If there is no relevant news on the project that might cause a massive liquidation, the FUD is probably caused by low volume on sales, what ignites what we call a "panic-sale" burst. The collection will have more listings at floor-price than sales, causing prices to go down.📉
On the other hand, FOMO (fear of missing out) will also bring the floor-price up, as volume (buying pressure) will be greater than new listing. 📈
Take a look at this Listing chart in a new perspective. Most people don't look at charts like that before pricing their NFTs.
But you know who does? Money bots! You need to know their strategy to make you own. In a high-volume sale, you must know where the marketing is heading.
A) Paper-hands. These are the undercutters. They are either loosing money for liquidity or early buyers. Either way, they NGMI. Never price your NFT here, unless you need the liquidity and you see a huge volume drop (FUD).
B) Resistance. It is very likely that sales will hit a tough spot here, and undercutters will continue panicking and paperhanding. So you might consider selling at this price point (or just below) if you need to cash in.
C) Floor-price. This is a place where holders have consensus near the bottom. Pricing anywhere from B to C, you are gold.
D) Target. You might see an unusual spike on the listing prices. This is an interesting spot to take profits if you are a holder. But if you have more than one token, you might consider listing at a higher target.
E) Diamond hands. There is always a place where diamond hands will meet. In this case, around 1 ETH (a very common place, btw) is a price tag cherished by a huge number of holders. But not be mistaken. High prices can be lowered with no charge, so there may be some wolves in sheeps clothing around here.
Remember: it is all about VOLUME. Buying pressure dictates the rhythm the listing graphs will dance. FUD and FOMO are on stage, and they will keep the party going all night long!
There are a bunch of tools nowadays to track floor prices, trends, mints, whales and much more! This is the cool part of having most part of the data available on the blockchain – developers can filter and deal with all this data in order to plot charts and dashboards.
⚠ This material is just for educational and artistic purposes, nothing here is an Investment recommendation, and we are not financial advisors. Investments on the NFT market are very risky. Always do your own research, and be happy!
JOIN OUR DISCORD for Alphas (free)