NFT as a comsumption phenomenon: An exploratory research of individual and societal impacts

The use of new technologies has brought about changes in consumer behavior trends. Just as new consumption phenomena emerged with the advent of internet technologies (Murero, 2001: 144), blockchain technology is also likely to introduce new consumption trends. In this context, the present study aims to explore the individual and societal impacts of NFTs, which have emerged as a new consumption phenomenon (Lee and Kwon, 2022: 1). This technology, which is still in its infancy (Zarifis and Castro, 2022: 11; Ali et al., 2022: 9), has the potential to impact our lives as profoundly as the internet and social media did in the past (Ardavanis, 2022: 77). Within the conceptual framework delineated for this study, the theories of extended self, the endowment effect, FOMO (fear of missing out), vulnerable consumers, and consumer empowerment have been utilized. The study adopts the transcendental phenomenology approach as outlined by Moustakas (1994). Semi-structured in-depth interviews were conducted with eight participants. The analyses revealed significant findings regarding participants' experiences with NFTs. The invariant components of participant' experiences with NFTs were categorized into five distinct textual themes. These textual themes explain how participants describe their experiences with NFTs. The identified themes are expressed as follows: "the process of encountering NFTs," "post-purchase experiences of NFTs," "the importance of communities and the roles of teams," "perceptions, emotions, and memories," and "the need for regulation." Structural analyses, on the other hand, uncovered the underlying intrinsic information behind participants' behaviors and experiences. The primary motivation for purchasing or minting NFTs was found to be the desire to earn money. NFTs were also seen to play a mediating role in achieving aspirations for gaining status and social acceptance. Findings indicate that participants trust blockchain technology. However, a significant sense of distrust towards project teams was identified. In addition, the study's findings demonstrate that NFT investors struggle to cope with financial vulnerability. Consequently, the need for regulation is strongly felt. The results align with the outputs of the extended self theory, the endowment effect theory, FOMO, vulnerable consumers, and consumer empowerment concepts outlined in the conceptual framework. Furthermore, the findings are supported by balance theory (Heider, 1958) and self-determination theory (Deci and Ryan, 1985).