According to a new study led by scholars from Carnegie Mellon University, the race of a non-fungible token (NFT)’s avatar can impact its transaction price.
At the time of their study, the authors found that Black CryptoPunks avatars were valued 30.7 percent less than White avatars. They found a similar disparity among women avatars compared to their male counterparts. However, the research team discovered that when an avatar featured characteristics linked to the tech industry or higher education, such as 3D glasses or virtual reality headsets, the gender and racial disparities in valuation were significantly reduced.
Considering NFT investors are predominately from younger generations, the authors originally hypothesized the marketplace would be less susceptible to historical gender and racial stereotypes and social biases. However, their findings challenge that idea and reveal persistent societal discrimination exists in emerging digital spaces. The authors encourage NFT creators to implement policies that mitigate bias and create fair transaction processes.
In addition to Carnegie Mellon University, the research team included scholars from New York University and Harvard University.
