The quasi-experimental evidence suggests that Non-Fungible Token (NFT) Spin-Off NFTs strategies significantly dampen raw asset valuations. Utilizing the launch of Mutant Ape Yacht Club (MAYC) by Bored Ape Yacht Club (BAYC) as an exogenous event and CryptoPunks as a control group, this study identifies the causal effects based on the trading data of 1,583 matched samples from MayDecember 2021, using the Difference-in-Differences (DID) method. The findings indicate that the issuance of MAYC leads to a significant decrease in the BAYC floor price by 39.461 ETH. Mechanism analysis reveals two transmission channels: 1) loyalty erosion, evidenced by a decrease of 324.625 normalized units in highly loyal BAYC holders post-launch compared to the control; and 2) substitution effect, where a 1-unit increase in the overlap between BAYC holders minting MAYC and BAYC sellers correlates with an average BAYC price decrease of 20.6 units. This study provides the first quantitative demonstration of the negative valuation effect of Spin-Off NFTs strategies on the original pool and identifies the dual mechanisms of loyalty loss and substitution, that offers important strategic warnings for digital asset portfolio management.
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