Why do people buy NFTs: a configurational approach to understanding the adoption of non-fungible tokens

Abstract

Non-fungible tokens (NFTs) are unique digital tokens issued on a blockchain to represent the proof of ownership of (digital) items. Despite their impressive technological capabilities and millions of users, research and practice lack an understanding of the factors motivating NFT purchases. In this study, we employ a sequential mixed-method approach to reveal what drives users to purchase NFTs. We performed 65 in-depth interviews (Study 1) with individuals who purchased at least one NFT to explore the factors that influence their decisions. Building on these insights, we carry out two surveys: one with 265 individuals who have purchased NFTs (Study 2), and another with 272 individuals who have considered buying an NFT but have not done so (Study 3). Using a fuzzy-set qualitative comparative analysis, we reveal the combinations of influencing factors leading to NFT adoption in our sample. Building on self-determination theory, our aggregated findings emphasize the importance of intrinsic interest. We developed four propositions grounded in our data to guide future research. This study provides unique empirical insights into the adoption behaviour of NFTs as an emerging technology from a user perspective.