NFT Marketplace Bias: Study Reveals Female and Black Avatars Sell for Less

Researchers from Carnegie Mellon University have uncovered significant gender and racial disparities in the pricing of avatars in the non-fungible token (NFT) marketplace, according to a new study. Published in the International Journal of Research in Marketing, the study offers insights into how avatars’ features influence transaction prices and suggests strategies for promoting equity in the digital market.

The research, conducted in collaboration with New York University and Harvard University, examined whether the NFT marketplace—often populated by younger, wealthier, and politically progressive individuals—is less prone to societal biases. Yuan Yuan, a Ph.D. student in marketing at Carnegie Mellon and the study’s lead author, explained, “As the NFT market continues to grow and increasingly leverages digital communities as brand assets, such questions will become increasingly important.”

Focusing on the popular CryptoPunks NFT collection, the researchers found that avatars depicting women were sold at prices 37% lower than male avatars with similar features. Similarly, Black avatars fetched 31% less than white counterparts. These findings were corroborated in a controlled lab experiment, which confirmed both gender and racial price disparities and identified racial bias as a key factor in purchasing decisions.