Exploring User Trust in Non-fungible Tokens: A Structural Equation Modelling Perspective

Abstract

We examined seven factors that shape buyers’ trust in non-fungible tokens (NFTs): authenticity, cost, operational transparency, community behaviour, security, utility and credibility. Through exploratory factor analysis and structural equation modelling, we explore the influence of the factors and subfactors on trust perceptions and levels of confidence of NFT buyers. The results suggest that transparency, cost, community engagement and security measures increase the trust of users, while credibility and utility have little impact. Key point to note, authenticity showed less significant influence on trust, which may be due to the reason of imprecise understanding of the subfactors. The study provides practical recommendations to promote user engagement and loyalty among NFT platforms, focusing on transparency, thorough security audits and active community governance. Ultimately, this research contributes to a deeper understanding of trust dynamics within the rapidly evolving NFT ecosystem.