The Role of the Media in Speculative Markets: Evidence from Non-Fungible Tokens (NFTs)

White, Joshua T.; Wilkoff, Sean; Yildiz, Serhat

doi:10.2139/ssrn.4074154

Cited by 13 publications

(11 citation statements)

References 36 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Finally, given the exceptionally limited literature, non-fungible tokens (NFTs) were not covered in this review. NFTs are cryptographic digital assets (e.g., images, and songs) that rely on blockchain technology to secure their value, which is closely related to the price of Ethereum (Apostu et al 2022;White et al 2022). Despite both NFTs and cryptocurrencies being based on blockchain technology they are not the same, as NFTs cannot be exchanged as currency (Dowling 2022).…”

Section: Discussionmentioning

confidence: 99%

“…Additionally, NFTs have also been compared to highly speculative markets, where investors expect to profit from 'hyped' digital assets valued substantially above their actual price (Ma and Wen 2022). A recent study also found that despite its potential for high returns, the NFT market is highly volatile (White et al 2022). Therefore, as research develops, future reviews examining gambling-related products will likely include several areas such as investing and video-gaming, as they progressively intersect under the umbrella of emerging technologies and the gamblification of their applications.…”

Section: Discussionmentioning

confidence: 99%

See 1 more Smart Citation

Cryptocurrencies as Gamblified Financial Assets and Cryptocasinos: Novel Risks for a Public Health Approach to Gambling

Andrade

Newall

2023

Risks

View full text Add to dashboard Cite

Policymakers’ attempts to prevent gambling-related harm are affected by the ‘gamblification’ of, for example, video games and investing. This review highlights related issues posed by cryptocurrencies, which are decentralised and volatile digital assets, and which underlie ‘cryptocasinos’—a new generation of online gambling operators. Cryptocurrencies can be traded around the clock and provide the allure of big potential lottery-like wins. Frequent cryptocurrency traders often suffer from gambling-related harm, which suggests that many users are taking on substantial risks. Further, the lack of regulation around cryptocurrencies and social media echo chambers increases users’ risk of being scammed. In comparison to the conventional regulated online gambling sector, cryptocasinos pose novel risks for existing online gamblers, and can also make online gambling accessible to the underage, the self-excluded, and those living in jurisdictions where online gambling is illegal. Researchers and policymakers should continue to monitor developments in this fast-moving space.

show abstract

Section: Discussionmentioning

confidence: 99%

Section: Discussionmentioning

confidence: 99%

Cryptocurrencies as Gamblified Financial Assets and Cryptocasinos: Novel Risks for a Public Health Approach to Gambling

Andrade

Newall

2023

Risks

View full text Add to dashboard Cite

show abstract

“…We noted that NFTs are innovative technology-based products with the characteristics of investment products. NFT is a highly speculative content asset the investor acquires to get future financial returns (White et al, 2022). Since the value of NFTs does not depreciate, the NFT price has fluctuated constantly over time, which might be tempting for a high-risk preferred investor.…”

Section: Research Frameworkmentioning

confidence: 99%

“…However, there are limitations to using the existing research models to explain the acceptance of NFT s. We noted that NFTs are innovative technology-based products with the characteristics of investment products. NFT is a highly speculative content asset the investor acquires to get future financial returns (White et al. , 2022).…”

Section: Research Model and Hypothesismentioning

confidence: 99%

Why do consumers buy NFTs?: Multi-path of attitude and the bandwagon effect

Lee,

Cha

2023

APJML

View full text Add to dashboard Cite

PurposeThe non-fungible token (NFT) market has been multiplying in recent years. NFTs are tokens stored on a blockchain network based on smart contract technology that can be used to represent ownership of digital assets and cannot be changed like-for-like. With NFTs, all recorded digital properties can be freely traded and stored with values, making them possible to increase content transactions' privacy and security. In addition, NFTs engender new ways to organize, consume, share and store digital content. Despite the rapid growth of the NFT market, related consumer behaviors have yet to be well-known and relevant academic research results are very scarce. This study aims to explain how NFT fits with blockchain and cryptocurrency and how consumers accept it. This paper also develops a structured causal model with multiple paths to explain the antecedents and attitude variables for NFT acceptance.Design/methodology/approachThe data collection was conducted from 542 young consumers in Korea via an online survey. The structural equation modeling method was used to analyze the hypotheses.FindingsAttitudes toward technology and assets positively affect NFT purchase behavioral intentions. Additionally, symbolic driver affects behavioral intention directly.Originality/valueThe results expanded the understanding of the NFT market and consumers, which are still in their early stages. They also provide valuable insights for establishing future market strategies for NFT.

show abstract

“…This is because NFT investing is a highly speculative industry-returns depend greatly on the amount of public attention that individual projects receive. 3 As previously mentioned, it should not come as a surprise that fluctuations in NFT sales have been historically and haphazardly drastic. However, by investigating how the behavior of the average NFT consumer affects future NFT sales and market vitality, a seemingly unpredictable aspect of the market becomes more transparent.…”

Section: Introductionmentioning

confidence: 95%

Granger-Causal Effects of Consumer Behavior on NFT Sales

Angelov

2024

ledger

View full text Add to dashboard Cite

An understanding of what influences the NFT market is valuable in such a speculative space, and predictors of directional shifts in NFT sales are beneficial to NFT users and investors alike. For these reasons, research was undertaken to determine if metrics relating to consumer behavior could predict NFT market sales. To begin, a Buyer Activity Metric and a Buyer Valuation Metric were calculated using open-access data regarding the NFT market. A three-variable vector autoregression (VAR) model was then constructed using these metrics and NFT sales data. Changes in monthly NFT sales were found to be Granger-caused by changes in both the Buyer Activity Metric and the Buyer Valuation Metric. Changes in each metric were determined to precede changes in NFT sales by up to four months. The associations were also determined to be unidirectional, indicating a clear cause-and-effect style relationship. Questions about these predictive abilities were then theoretically explored.

show abstract

The Role of the Media in Speculative Markets: Evidence from Non-Fungible Tokens (NFTs)

Cited by 13 publications

References 36 publications

Cryptocurrencies as Gamblified Financial Assets and Cryptocasinos: Novel Risks for a Public Health Approach to Gambling

Cryptocurrencies as Gamblified Financial Assets and Cryptocasinos: Novel Risks for a Public Health Approach to Gambling

Why do consumers buy NFTs?: Multi-path of attitude and the bandwagon effect

Granger-Causal Effects of Consumer Behavior on NFT Sales

Contact Info

Product

Resources

About