Price Behaviour

NFT Lifecycle Pricing Behavior

Every project has reasons why their price moves the way it does and the better you know the proejct the better of an understanding you’ll have. The phases of an NFT mint and secondary sell consist of 1 - Pre-sale(s) 2 - Public sale 3 - Pre-reveal 4 - Post-reveal

Pre-sale

Most mints follow the same process, they have their mint, (for the sake of this we’ll say it sells out) floor will be set high initially and as people begin to undercut the floor will be pulled down. FOMO can kick in on a sellout and with high volume it can drive the floor up until such time as volume slows down and demand and the price meet an equilibrium

Public sale

If a public sale has a Dutch auction the floor after pre sale may be quite high. E.x, Pre mint is .1, the dutch starts at .5. The floor could be anywhere between .4-.6 On normal public sales, if the pre mint was profitable the floor will be undercutted by paperhands. Volume may increase as new people try to get and the floor should come back to what it was at pre sale

Post Reveal

So why does the floor always drop after reveal? If people can mint 2-3 NFT’s and get 2 non-rares and 1 rare they more than likely sell of their two non-rares and hold their rare if the project is good. This leads to a lot of undercutting as people are desperate for theirs to sell at the best price