2022/02/07 by Voraprapa Nakavachara, Nakavachara, Voraprapa, Kanis Saengchote +1 · 2 citations
Business, Management and Accounting · Computer Science · Economics, Econometrics and Finance · Mathematics · #Blockchain Technology Applications and Security #Business #Commerce #Computer science #Computer security #Database #Database transaction #Economics #FOS: Economics and business #FinTech, Crowdfunding, Digital Finance #General Economics (econ.GN) #General Finance (q-fin.GN) #Investment (military) #Mathematics #Metaverse #Microeconomics #Monetary economics #Operating system #Political science #Sandbox (software development) #Security token #Unit (ring theory) #Virtual Reality Applications and Impacts #econ.GN #q-fin.EC #q-fin.GN
paper · pdf · doi:10.48550/arxiv.2202.03081
published in arXiv (Cornell University) (Cornell University) · 12 pages, 5 figures
arxiv created 2022/02/07 · openalex publication_date 2022/02/07 · arxiv updated 2022/02/08 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28
The Sandbox metaverse LAND non-fungible token (NFT) prices increased by than 300 times (in USD) between December 2019 and January 2022, but when measured in its native utility token (SAND), the increase is only 3 times. Depending on how prices are denominated, investment returns and effective transaction prices vary. We analyze more than 71,000 transactions and find that users are willing to pay 3-4% more when transactions are settled in SAND, and 30% less when settled in wETH (a smart contract version of ETH) when compared to ETH, so unit of account matters. Our results contribute to the discussions of blockchain-based, virtual economy management and the digitalization of money (Brunnermeier et al., 2019).