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An auction seems like a much simpler way to do price discovery without excluding that part of your customer base that doesn't know how to use an NFT (or doesn't
by shkkmo 5y ago
An auction seems like a much simpler way to do price discovery without excluding that part of your customer base that doesn't know how to use an NFT (or doesn't want to.)
Edit: The market is for the NFTs, not for the shoes themselves. It isn't clear to me how Adidas is able to separate demand for the shoes themselves from speculative interest in making money off of the NFT. Markets can indeed be great price discovery mechanisms, but rampant speculation can significantly tarnish the effectiveness of that mechanism because the pricing can become more dependent of the market's understanding of demand rather than on the demand itself.
- vmception 5y ago> The market is for the NFTs, not for the shoes themselves. It isn't clear to me how Adidas is able to separate demand for the shoes themselves from speculative interest in making money off of the NFT. The real question is why assume that was a goal? Adidas and many companies don't raise the MSRP specifically because they know they have a price sensitive audience and reputation. This gives them plausible deniability, the ability to sell an additional product and financial exposure to the volume in the secondary market anyway.
- shkkmo 5y ago> The real question is why assume that was a goal? I didn't assume that. I was disputing as assertion that "price discovery" was the goal and that somehow made this not "gatekeeping".