Music NFTs: An Ordinal Logit Study of Factors Associated with Market Awareness

Abstract

This research is motivated by the considerable amount of attention given to cryptocurrencies, and more importantly for music, non-fungible tokens (NFTs) as a vehicle for transforming the music business. Based on two surveys, applying ordinal logit models, this research investigates variables possibly associated of awareness of NFTs across countries of the European Union as well as the in the five largest European countries, i.e., France, Germany, Italy, Spain, and the U.K. An ordered logit approach is applied to the separate and pooled E.U. data sets and to the data for the “Big Five” E.U. countries. Particularly given the troublesome events in digital assets markets in 2022, it is reasonably clear that there are issues of asymmetry and lack of transparency in these markets suggesting that there is a pressing need for marketers, issuers, and purchasers of digital assets to enhance their crypto literacy.