Editor's Note: This article comes fromBlue Fox Notes (ID: lanhubiji)Editor's Note: This article comes from

Blue Fox Notes (ID: lanhubiji)

Blue Fox Notes (ID: lanhubiji)

Foreword: There are non-homogeneous token assets on the blockchain, and they are unique. In the virtual world of the blockchain, NFT will have different attributes and varying degrees of scarcity. These different scarcity lead to different values, so how to value these non-homogeneous token assets? This article takes Cyptovoxels as a case to discuss how to value non-homogeneous token assets on the blockchain.

When looking for the best way to value non-fungible tokens (NFTs), I basically came to the conclusion that no two projects are the same, and every project, game, ecosystem needs its own valuation method.

In this article, I will explore specific projects and use a valuation method that I believe can find a relatively reasonable valuation of the Cryptovoxels "land" space. Please note that I am not valuing the project itself, but only the "plot of land" (hereinafter referred to as the "lot") within Cryptovoxels. (Blue Fox Note: Cryptovoxels is an encrypted virtual world project based on the Ethereum blockchain, where people can buy "lots" to build stores and art galleries, and the "lots" constructed can be traded, then, This creates a need for how to value "lots". It has built-in editing tools, avatars, text and voice chat, etc.)

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What are Cryptovoxels?

Cryptovoxels are virtual worlds owned by users. Users in Cryptovoxels can buy and sell land to build whatever they want. Similar to Minecraft, all structures are built using simple blocks. Determining the reasonable value of these "lots" relies on a variety of factors.

As an example, let's evaluate the asset "15 Robotis Route". It is a rectangular property located in the "Le Marais" community, as shown in the black dotted area in the figure below.

The figure below shows it zoomed out to see its position in the world of Cryptovoxels

This map shows 15 Robotis Route located northwest of "The Center," the first community created on Cryptovoxels and the entry point for new users into its virtual world. Theoretically, the "central" community is the area with the most traffic and activities, which means that there is a higher demand for "lots" in this community.

Above is a 3D image of 15 Robotis Route and adjacent buildings. Please note that 15 Robotis Route connects to 4 Mezzanine Gateway. If users can buy into adjacent "lots", they can greatly expand their potential build area, which will likely lead to an increase in value.

• flow

Cryptovoxels shares important metrics that come in handy when it comes to valuation, such as:

• Token

flow

• Traffic shows the total number of visitors to a plot. The page above indicates that 15 Robotis Route has had 2358 visits, which is the highest number of visits for the week of October 4, 2019. (Blue Fox Notes: The current number of visits exceeds 2600, the growth is not much, and the virtual world project still has a long way to go)

Token

color

• Community

Color refers to COLR tokens. When building in Cryptovoxels, all building blocks are black and white. You can color your building blocks by buying COLR tokens and staking them.

• The token COLR used for coloring needs to be purchased from the decentralized exchange Uniswap. Black and white plots are less attractive than colored plots, which means that plots without color will have fewer visitors and be less valuable. Since COLR is not free, the more colorful the plot, the more valuable it should be. 15 Robotis Route has 149 COLR which makes it more valuable than a similar parcel without any COLR.

Community

• A worthy community has a lot of activity and high-quality builds (eg, colorful and fun). 15 Robotis Route is located in the Le Marais neighborhood. Le Marais is an older neighborhood with many buildings, however, most of these buildings are in black and white. Fortunately, the community is a short distance from "The Center", a highly sought after location.

Location

The position indicator shows its exact distance from the "center". The lower the location indicator number, the more valuable the asset is. (Blue Fox Note: The closer the distance to the "center" is)

• build height

Build height is also an important factor in valuation. Because the taller a structure is, the more visible it is and the more space there is to build on. We can see that 15 Robotis Route has a build height of 13 meters.

Currently, in Cryptovoxels, there are 1543 plots, and only 193 of them have a building height of 13 meters or more, so the height of 15 Robotis Route is relatively small, which means it is more valuable. (Blue Fox Note: More than 1,650 plots have been mined so far, and the highest construction height is Zemp Tower, reaching 40 meters)

area

The area indicator shows the total space where you can build structures. The larger the area, the larger the buildings that can be constructed, which means the greater its potential value. 15 Robotis Route has an area of ​​294 square meters, which is larger than 27.94% of other land parcels.

The image above shows a house building with a barn, chickens, pigs, sheep, and even a tractor. Even though this asset has no functional purpose, it's still worth exploring, especially since the surrounding buildings are all black and white.

It is debatable whether the more interesting a plot is, the more valuable it is. However, I personally think that such plots fetch better prices than similar plots with nothing on them.

The plot contains COLR, so of course adds some monetary value to the property, but even with that in mind, I think it fetches a higher price simply because it's an interesting build. Obviously, "interesting" is very subjective, but what about when a plot has an actual function?

Conalan Rios, creator of the structure above, has added functionality to his plot that allows users to purchase COLR tokens directly from its vending machines. Although this seems simple, it shows that people can create and earn income directly from their own land.

Valuation

In the coming months, I expect most of the Cryptovoxels plots will have various features and games. It has a cascade effect: more people join Cryptovoxels, more interesting structures are created, which in turn attracts more people, and so on.

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Valuation

We examine a specific plot in three different Cryptovoxels communities by comparing it to its surroundings.

Valuation of 6 Smart Estate in Little Tokyo Community

The first parcel we investigated was 6 Smart Estate in Little Tokyo, a relatively undistinguished neighborhood, which makes it a good reference point for other assets. Its quantitative metrics are average or slightly below average.

The only metrics that stand out on this parcel are the number of its visitors and the COLR tokens staked in its holdings. It has 434 visits, which is slightly above average, while it has 325 COLR tokens staked on the plot.

6 Smart Estate was sold at a price of 0.2931ETH in April 2019, so the plot is lower than Little Tokyo's market average price of 0.0369ETH, which is 11.18% lower than the market average price.

In addition, the average market price per parcel has increased significantly over the past 6 months. When this plot was sold in April 2019, the average price of each plot was 0.35ETH. And now the average price per plot has risen to 0.48 ETH, an increase of 37.17% in six months.

When we look at the actual structure itself, we see it's an art gallery. Judging from its plot name "Blockchain Art EX", we can assume that this is an art gallery set up for blockchain art transactions. On this platform, you can buy, sell and manage your digital artwork portfolio.

image description

Clicking on the artwork on the art gallery of the plot will display the details of the NFT artwork

The artwork on the wall is a non-fungible token (NFT), which can be admired or purchased through OpenSea. The functionality of the plot adds to its value as users may come to engage or interact.

After considering these quantitative and qualitative indicators, I estimate that the value of 6 Smart Estates is between 0.45ETH (lowest) and 0.70ETH (highest). The low-end valuation (0.45ETH) is considering that the only above-average quantitative metric for this asset is its visitor count.

The Little Tokyo neighborhood itself isn't very sought after, but it's closer to the "central" neighborhood than most. The high-end valuation (0.70ETH) is considering that the building on the plot is an art gallery, which will attract users' attention. Considering that the total number of block owners in Cryptovoxels is 331 different wallets, generally speaking, one wallet represents one person, and 434 visits is not bad.

6 Smart Estate Final Valuation

Low-end valuation: 0.45ETH, 53.53% higher than the original purchase price

High-end valuation: 0.70ETH, 138.83% higher than the original purchase price

Valuation of the "76 Block Fork" in the "Center" community

Next, let's evaluate the asset value of "76 Block Fork" located in the "Center" community. The "Central" community is the most popular among Cryptovoxels, as it is the user's first entry into the "Origin City" and from there access to the entire virtual world.

Prominent quantitative metrics for this plot include the number of visitors and token ID numbers.

The "76 Block Fork" parcel is neither very large nor very high, however, its traffic and token ID provide value. It has 3084 visitors, which is remarkable considering there are only 331 wallets in Cryptovoxels. This is most likely due to its proximity to the "center".

The token ID number, which represents the time when the token was created, can also add a lot of value to the plot. Its token ID is 5, which means it is the fifth block created on Cryptovoxels. This early parcel can greatly increase its value.

The asset was last sold in July 2018 for 0.38 ETH. Considering that the current average price per lot in Cryptovoxels is 0.48ETH, one can quickly conclude that the asset has increased in value. From its numbers, 76 Block Fork looks promising, but from a qualitative standpoint, it loses some points.

If the owner of the property decides to build something interesting or have a functional use, this can attract visitors and the property will be more valuable. In any case, the purchase price of this asset is not only below the average price of its neighborhood plots in the "Center" neighborhood, but also below the average price of all Cryptovoxels plots.

There are a total of 63 plots in the "Center" community, and the previous average selling price was 0.65ETH. However, considering that most of the plot holders in the "central" neighborhood are inactive, it is more accurate to take the average price of the 15 most recently sold plots. The average selling price of the most recent 15 plots in the “Center” community was 2.19 ETH. This price has increased by 467% compared with the initial purchase price of 76 Block Forks of 0.38.

After examining the various value drivers of the 76 Block Fork, we can safely assume that the minimum value of the block is 2ETH, and the maximum value could be higher if the buyer cares about the token ID.

Assume that the top ten token IDs will have a transaction premium, while the token IDs ranked 10-99 will have a slight premium, and so on. With this in mind, and its high visitor count, the high-end valuation of this parcel may have the potential to reach 6ETH. 6ETH valuation can also be achieved by building interesting or functional utility structures.

76 Block Fork Final Valuation

Low end valuation: 2ETH, which means it is 426.32% higher than the bid price

High-end valuation: 6ETH, which means it is 1487.95% higher than the purchase price

Valuation of the "1 Degauss Fort" in the "Frankfurt" neighborhood

Finally, let's evaluate the valuation of the "1 Degauss Fort" located in the "Frankfurt" neighborhood. The "Frankfurt" community is valued because it has the highest build height among Cryptovoxels.

This particular plot does not appear to be of high value as it does not have anything built on it. However, we may change that opinion when evaluating two key quantitative metrics (buildable height and number of visitors).

• The visitor count of 584 is impressive, especially considering that there are no structures on it yet. We can attribute the high number of visits to its plot location in the Frankfurt neighborhood, which is very popular.

• 1 Degauss Fort is unusual in that it can be built to a height of 32 meters: only 8 other blocks in the world of Cryptovoxels can be built to a height of 32 meters or more.

• This means that 1 Degauss Fort has a build height higher than 99% of the remaining 1543 lots. If we find that there are only 8 other parcels that meet and exceed this build height, we can better value it.

• 40 Hook Street - last sold for 2.1 ETH

• 2 Cash Road - last sale for 7 ETH

• 2 Mellow Gardens - last sale for 6 ETH

• 1 Gamma Freeway - last sale for 1.5 ETH

• 1 Cash Road - last sale for 2 ETH

42 Hook Street - last sold for 2.1 ETH

38 Hook Street - last sold for 2.1 ETH

39 Hook Street - last sold for 1.65 ETH

The average selling price of a plot whose construction height reaches or exceeds 32 meters is 3.05 ETH. 1 Degauss Fort was sold for 0.75ETH in March 2019. If we take the average price per plot of a similar build height in the Frankfurt community, we assume the current value is at least 3ETH.

So, the value of 3ETH has increased by 300% from its original purchase price (0.75ETH). Apart from building height and visitor numbers, the property is located in a Frankfurt neighborhood that competes with the "central" neighborhood in terms of demand.

Frankfurt currently has a total of 100 plots, and its average price per plot is 1.01ETH, making it the most expensive community in the entire Cryptovoxels world. Since nothing has been built on this lot yet, we were unable to observe more qualitative indicators.

The sale price of 0.75ETH seems cheap as the average lot sale in Frankfurt is 1.01ETH, which is an increase of 34.67% in the 6-month time frame. The price looks even more affordable when you compare parcels with the same or higher build height: they cost an average of 3.05 ETH.

With this figure in mind, we see a huge gain of 306.67% from its purchase price. Even without any construction on the asset, I would put its low end valuation around 2.5ETH and the high end valuation around 6ETH.

By researching other small assets with a 32m build height that sell for around 2ETH, we can presumably determine their low end value. The high-end valuation comes from the fact that there are very few assets with a build height of 32 meters, and assets with similar build heights are rarely for sale, and the last selling price of assets with a build height above 32 meters reached 6-7ETH .

These assets are built with higher heights and larger areas, but considering that there have been no other 32+m plots for sale for a long time, I think that if 1 Degauss Fort is sold on the market, its high-end valuation can reach 6ETH .