Now that we have covered the basics of buying and selling NFTs on MOOAR, we’ll touch a little on a more advanced feature this time — NFT Auctions.
Let’s take a look at how this works!
What are NFT Auctions and how do they work?
Simply put, NFT auctions allow sellers to open up their NFT for bidding. They are able to determine the parameters for duration, minimum bid price, and buyout price.
Interested parties may then look to place bids on your NFT. The more “in-demand” your NFT is, the more supposed bids you should receive.
Setting up an NFT Auction
Go to your profile and select the NFT you want to auction, and click Sell.
There are 2 methods of sale — either Fixed Price or Timed Auction. Select Timed Auction.
Choose your Minimum (starting) Bid and Reserve Price.
The Minimum Bid is the lowest bid that potential buyers must make, assuming no one else has placed a bid yet.
The Reserve Price is the minimum price of sale for the auctioned NFT to go to the bidder. For instance, if you set the Reserve Price at 10 ETH, it means at the end of the auction, if the bid does not reach at least 10 ETH, the auction will be nullified.
Choose the timeframe of the auction. This can be either 1 Day, 1 Week or up to 1 Month.
Approve your listing. You will be required to approve and sign 2 transactions. Once done, your auction is live! Let the bidding wars begin!
Why use NFT Auctions?
NFT Auctions are typically used for rarer NFTs in a collection that may usually not get enough visibility as compared to the more common “floor” pieces (less rare NFTs that can usually be bought at the minimum asking price for the collection). It also enables the seller to get a gauge at the demand for the particular NFT, and potentially adjust the asking price accordingly.
Auctions can be a valuable tool in the arsenal of a trader to prop up demand for the NFT.
Take for instance — if you had a rank 100 BAYC and wanted to sell it, what price could you possibly list it for? 500 ETH? 1,000 ETH? When it comes to rare pieces, it’s tough to put a fixed number on it, especially since these pieces are so infrequently traded.
A good way to go about this is to hold an auction and share it through socials (i.e. Discord, Twitter, even Reddit).
This will serve 2 purposes:
- Show potentially interested parties that a rare piece is up for grabs, therefore giving visibility to your auction, which may even incentivise individuals who were not intending to purchase it in the first place to participate, especially if FOMO (fear of missing out) sets in.
- Give you a rough idea how much your NFT could potentially go for (based on the winning bid). This will help you decide if the price is right for you to part ways with your NFT.
NFT Auctions may not be for everyone, but they do serve a niche when it comes to trading/selling your NFTs. As always, if you intend to trade NFTs, do so within your means and take note that the NFT market is extremely volatile.
We hope this has been helpful. If you have questions, feel free to drop it in the comments below and we’ll do our best to clarify.