Why we created the sniper pro
TL;DR:
NFT is typical illiquid market where price discovery is vague
NFT market participants tend to trade NFT item/collections based on single most important factor – rarity, aside from overall NFT or blockchain/crypto market impact
Existing tools do not provide clean-cut solution to reveal NFT item relatively value; Pewee Tool’s Sniper Pro is set to solve the problem
What’s daily trading volume of Apple stock? About 90mm shares as of 7/21/22.
What’s daily trading volume of ETH? About 12mm ETH.
What’s daily trading volume of some popular NFT collection, say Goblintown? About 40 transactions.
What’s trading activity of a single Goblintown item, say #9650? It traded on 7/22/22. What about last time before 7/22/22? Oops, more than one month gap, 6/11/2022.
(For the sake for simplicity, we use Goblintown as example through this article; but arguments made here should apply to any legit NFT collection)
All above is trying to convey single one fact: NFT market is a typical illiquid market, featured as 1) infrequent trading and 2) low turnover.
Traders, investors, market makers continuously make bid and offer on liquid market such as Apple stock or ETH. If you are set to buy some ETH, you can easily figure out current market level. However, that’s not the case for Goblintown #9650. You might scratch your head about the current price level of #9650 as it might trade long time ago and currently it is not event listed.
Numerous variables could drive current “fair” price level for #9650. Generally, we are facing the following factors and dynamics (hopefully we are not simplifying here)
Overall financial market, crypto market, NFT market will have impact on each other (probably overall financial market drives the whole system, but I will defer to you to interpret the direction and strength of impact among the three)
NFT market will have strong correlation with specific NFT collection, such as Goblintown
All Goblintown 10,000 items collectively make up Goblintown NFT market and #9650 fair price level should be correlated with other Goblintown items
Pewee Tool provides a suite of tools trying to help 1) and 2); Sniper Pro is specifically to address 3).
The correlation between #9650 and other Goblintown items come from two-fold. First, if most traded Goblintown traded higher recently, #9650 is expected to uptick along. Second, some unique features of #9650 and other Goblintown items should set apart their price levels relatively and we believe the most important feature is rarity rank. #9650 rarity ranked at no.8960, it is reasonable to expect it worth higher than no.9500 but lower than no.3000.
The above dynamics between should be wired in every single NFT investor/trader mind. However, every trader/investor probably needs to scratch it out on paper every single time when he/she needs to buy or sell. Hmm, seems a time consuming and inaccurate process. Sniper Pro not only programs this thought process into code but also presents the results by user-friendly visuals. It should save tons of headache and time for NFT investors/traders and let them focus on more important matters – buying and selling!