Definition ∞ A reserve price is the minimum acceptable amount for which an asset can be sold, particularly in an auction or sale. In digital asset markets, especially for non-fungible tokens or tokenized real-world assets, the reserve price is a predetermined value below which the seller will not complete a transaction. It serves to protect the seller from liquidating an asset at an undesirably low valuation. This mechanism ensures that a sale only proceeds if bids meet or exceed the set minimum.
Context ∞ Reserve prices are frequently mentioned in news related to NFT auctions and digital art sales, particularly for high-value items. The setting of an appropriate reserve price can influence bidding behavior and the success of a sale, reflecting market sentiment and the perceived value of unique digital collectibles.
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