Analysis of Social Influence, Financial Risk, Benefits, Expense, and Regulation Factors Influencing the Intention to Use Non-Fungible Token (NFT)

Abstract

Based on Q3 2022 blockchain tracking data, NFT appeal is waning due to unpredictable interest rates, inflation, global conflicts, and market volatility. Previous research examined technological, economic, ethical, and social aspects to analyze the positive and negative impacts of NFT digital collections in China with target respondents of individuals engaged in the arts. While the novelty in this study focuses on financial risks, social factors, benefits, expense, and regulations on user interest in NFTs in Indonesia to see if these factors influence individuals to use NFTs that have not been discussed in previous studies with target respondents who understand or have NFTs. The quantitative methodology used in this study is SEM-PLS approach using SmartPLS, which is commonly used in information systems studies. This study reveals that the two relationships of Expenditure Factors and Social Influence Factors have no significance or influence on the intention to use. This research uses quantitative methods aimed at the Indonesian public by obtaining data through questionnaires supported by the snowball sampling technique with the aim of being more efficient and cost-effective. This study concludes that influential factors, such as benefits, financial risk, and regulation, significantly shape users' intention to adopt NFTs. While expense and social influence factors may be related to usage intentions, they do not have much impact on NFT adoption. The factors examined in this study accounted for 71.1%, leaving room for the development of additional factors (28.9%) in the future. These insights aid NFT adoption enhancement and industry application development.