This article examines the technological emergence trajectory of Art Non-Fungible Tokens (NFTs), exploring their initial promise and then failure as transformative commodities disrupting art economies. Operating within an analytical framework of hope, hustle and hype, death and taxes, we investigate the interplay of technological, cultural, and economic trends shaping this trajectory towards failure. We identify the sociotechnical imaginaries clothing art NFTs and consider their relationship to both the acceptance and rejection of this technology. Our analysis contends that the desire to escape economic exclusion created a collective hope through which social adoption occurred. However, delving into the digital graveyards of Art NFTs, we identify external forces such as cultural shifts, social backlash, and regulatory interventions extinguishing the public’s ‘cruel optimism’, leading to the revocation of the social licence to operate for this emerging technology.
Background In recent years, the rise of “AI+arts” has increased public attention towards emerging digital collectibles and garnered significant interest among young adult collectors globally. However, there has been limited investigation into how emerging media effects may influence consumers’ purchase of digital collectibles from the perspective of relevant theories, particularly in collectivistic cultural contexts. To address this gap, the present study is guided by the extended Theory of Planned Behavior (TPB), integrated with ideal self-congruence, and rigorously examines the effect of exposure to Non-Fungible Token digital art information on the intention to purchase digital collectibles among young Chinese adults (aged 18–34). Methods A total of 259 responses were obtained through an online survey. Statistical analyses, including direct, indirect, and serial mediation, were conducted using SPSS 25.0 and Jamovi 2.6.24. Results The findings indicate that both TPB and ideal self-congruence act as mediators in this relationship. Additionally, a serial mediation process involving ideal self-congruence and attitudes toward intelligence was identified. Conclusion These findings provide valuable insights into the complex factors influencing the purchase intention of digital collectibles among young Chinese adults. Furthermore, the findings offer recommendations for digital collectible platforms and relevant stakeholders.
Open access
Digital Marketing and Social Media
Art History and Market Analysis
Consumer Behavior in Brand Consumption and Identification
This paper offers an overview of the African art scene, with a special focus on the Kenyan art scene. It will also examine non-fungible tokens (NFTs) as a new marketing tool and platform for artists from Africa, exploring how this technology has diversified artistic practices through experimentation beyond traditional painting and sculpture to video, performance art, installations, photography, and digital media. The paper does not delve into the technicalities of creating NFTs but presents an overview and experiences based on conversations with artists and a gallery owner based in Kenya. It also highlights key marketplaces available for minting and marketing NFTs online, noting those most popularly used by artists from Africa.
The subject of the research is the development of the market of non - interchangeable tokens for works of art, which has become a new paradigm in the global art market of the 21st century. The purpose of the work is to determine the place and role of non - interchangeable tokens for works of art in the life of modern society. It is shown that the world is experiencing a rapid development of the market for non-fungible tokens (NFT), which includes digital works of art created from digital materials and not linked to real assets, and tokenized non–digital works of art linked to real tangible products of artistic creation, conscious human activity with aesthetic value. The speculative nature of the NFT resale market has been established, which initially caused a “gold rush”, and subsequently its adjustment due to the accelerated production and supply of art objects in NFT, which led to a drop in prices. It is revealed that the development of the NFT market requires solving the problem of legal qualification of digital assets and inheritance in Russia, whereas abroad they are considered as proof of ownership of a digital asset. Despite the development of the financial sector in Russia in the digitalization of financial services, the domestic NET market has just begun to form, in particular the platform Kefirium.ru provides an opportunity to buy and sell NFT for rubles. Conclusions are drawn about the need for further development of digitalization of financial services, in particular the market of non-interchangeable tokens for works of art in Russia, the formation of competition between domestic platforms for the purchase and sale of NFTs for rubles, as well as the legal qualification of digital assets and their inheritance in Russia.
Using a variety of parametric and non-parametric tests, this study investigates the price effects of one-day abnormal returns and the day-of-the-week effect in selected non-fungible token (NFT) coins. The results, based on the data of four NFT coins (Mana, Theta, Enj, and Waxp) observed from January 2018 to July 2022, show that there are differences in pricing patterns across the four NFTs. First, NFT coins’ prices tend to exhibit contrarian movements following one-day abnormal returns, especially in Theta, in line with the overreaction hypothesis. Second, the day-of-the-week effect is significant for Mana, where prices tend to abnormally increase during the weekend. Finally, trading strategies based on price patterns identified in Theta and Mana generate abnormal profits.
Recent volatility in cryptocurrency markets has highlighted the need for more sophisticated prediction models that incorporate market sentiment across multiple platforms. This paper presents a framework for cryptocurrency price prediction and trend identification that leverages natural language processing and machine learning techniques to analyse sentiment across social media platforms, news outlets, and trading forums. Our multi-platform sentiment analysis framework processes data from Twitter, cryptocurrency news websites, and trading platforms to generate comprehensive sentiment indicators. We employed a hybrid approach combining BERT-based sentiment classification with traditional machine learning algorithms to process platform-specific linguistic patterns and domain-specific terminology. The framework was evaluated using historical data from January 2020 to December 2023, focusing on Bitcoin and Ethereum markets. Results demonstrate that our multi-platform approach achieves a 23% improvement in price prediction accuracy compared to single-platform sentiment analysis methods, with particularly strong performance during periods of high market volatility. Furthermore, this research contributes to the growing field of cryptocurrency market analysis by highlighting the importance of cross-platform sentiment aggregation and providing a scalable framework for real-time market sentiment analysis.
Purpose This study investigates herd behavior in the Fan Tokens market, comparing it with the non-fungible tokens (NFTs) and traditional cryptocurrency markets. Design/methodology/approach This study investigates herding behavior by examining the relationship between the cross-sectional dispersion of asset returns and overall market returns, utilizing five distinct model specifications. To enhance the robustness of the findings, the regressions are re-estimated using the GARCH model, ensuring more reliable parameter estimates and capturing the impact of volatility on herding behavior. Findings The analysis reveals strong evidence of herd behavior in the Fan Token market, particularly during bearish conditions, heightened volatility, and low trading volume. Positive news was found to amplify volatility more than negative news. In contrast, no statistically significant herd behavior was identified in the NFT and traditional cryptocurrency markets, where investors showed a more cautious response to market conditions. Practical implications Understanding the unique dynamics of Fan Tokens can help investors, regulators, and market participants make informed decisions and develop strategies to mitigate risks associated with herd behavior and volatility in this rapidly evolving market. Originality/value This study highlights the unique characteristics of Fan Tokens, emphasizing their strong ties to fan sentiment and sports outcomes, as well as the role of uninformed investors in shaping market dynamics. The findings contribute to the literature on digital asset markets and investor psychology, offering novel insights into this emerging asset class.
Finding innovation in blockchain technology, the Online Art Gallery to changes the digital art marketplace to create a safe and transparent environment for artists and buyers. With this system, artists can sign up to upload, Manage and sell their artworks. Buyers can look for, purchase, and own with verified authenticity. Some of the most important features are the digital certificates generation, ownership verification as well as safe transactions. Blockchain-based, it offers greater security with watermarking, preventing screenshots, and decentralized storage through IPFS to prevent unauthorized use of the digital artworks. The process of buying artworks becomes relatively easy for the buyer, having an immutable transaction record on the blockchain that preserves ownership rights and establishes a basis of trust. The application also offers a user-friendly interface that connects artists to international crowds and simplifies the management and sale digital art to artists. The paper focuses on showing the enhancement of security, transparency, and efficiency in the marketplace by using blockchain technology for digital art, with value to both creators and collectors.
Purpose Non-fungible tokens (NFTs) are reshaping art markets and gaining strong stakeholder interest. While research has examined their applications in art ecosystems, their role in advancing Web3D markets remains unclear. Design/methodology/approach A systematic literature review was conducted to investigate the impact of NFTs on the Web3D market and its impact on stakeholders, analysing 89 systematically selected articles. Findings The results of the study show that NFTs in the Web3D context can enhance privacy and trust through blockchain technology and protect intellectual property and ownership rights while influencing market dynamics, behaviour and investment strategies. Originality/value As the Web3D ecosystem grows, ongoing research and collaboration are critical to developing strategies that ensure sustainability, transparency and innovation in digital arts. This study is the first step in exploring these dynamics. Highlights
Korean Academic Society of Taxation, Hyung Jong Na, Ji Young Kwak, Chung Hyu Shin
This study examines the current challenges within the taxation system of the Korean art market and proposes introducing an art registration system as a solution. The art market holds cultural and economic significance, and ensuring transaction transparency and a fair taxation framework is critical for building trust in the market and fostering sustainable growth. However, the existing taxation system in Korea faces various limitations, including irrational capital gains tax thresholds, excessive expense deductions, transaction opacity, and inconsistencies with international standards. Particularly, the reliance on self－reporting and the prevalence of informal transactions have perpetuated issues such as tax evasion and money laundering. To address these problems, this study suggests implementing an art registration system that systematically records transaction histories and clarifies ownership transfers, thereby enhancing transaction transparency and taxation effectiveness. The proposed system involves establishing state－led art registration offices to manage transaction records and developing a user－friendly online registration platform to ensure practical implementation. This system aims to prevent tax evasion, achieve tax fairness, and restore trust in the art market by recording ownership changes and transaction data. The key findings of this study are as follows. First, the art registration system can significantly enhance transaction transparency and tax fairness. Systematic management of transaction histories will establish a solid tax base, preventing tax evasion and illegal trades. Second, the system can contribute to revenue generation and strengthen national finances while reallocating collected taxes to support cultural arts and protect artists. Third, by restoring market trust and encouraging active transactions, the system can drive the sustainable development of the art market. Fourth, it will effectively combat money laundering and illicit fund transfers while laying the foundation for taxing emerging digital artworks such as NFTs (Non－Fungible Tokens). This study proposes several practical measures for successful implementation, including enacting legal frameworks, establishing art registration offices, and adopting a phased introduction. Initially, the system should focus on high－value artworks to test its feasibility and effectiveness through a pilot program, followed by gradual expansion. Furthermore, this study emphasizes measures to alleviate artists' financial burdens, such as fee exemptions or reductions for the initial registration of their works, to encourage participation and ensure the system’s stabilization. In conclusion, the art registration system presents an effective solution for enhancing transaction transparency, achieving tax fairness, and restoring trust in the art market. It also provides a robust taxation framework suitable for the digital era, particularly for emerging markets like NFTs and digital artworks. By addressing the structural challenges of the current taxation system, this system is expected to improve the international competitiveness of the Korean art market and serve as a foundation for its sustainable growth.
Purpose Using the high-frequency intraday data of the top 100 most liquid cryptocurrencies, this study aims to examine the presence of the MAX effect in the cross-sectional pricing of cryptocurrencies. Additionally, it delves into the pricing implications of idiosyncratic volatility (IVOL) and skewness, both idiosyncratic and systematic, across the cross-section of cryptocurrency returns and their interaction with the MAX measure. Design/methodology/approach Driven by the growing influence of high-frequency trading (HFT) in the cryptocurrency market, the study modifies Bali et al. ’s (2011) MAX measure by incorporating an hourly forecast horizon and 5-min log returns from the preceding hour. The relationship between MAX, IVOL and skewness over the past hour and expected returns is examined using portfolio-level analysis and Fama and Macbeth’s (1973) cross-sectional regressions. Findings The findings indicate that an increase of one standard deviation in MAX corresponds to a 0.043% decline in subsequent returns for cryptocurrencies, suggesting overvaluation due to increased demand. These results are robust to other traditional price determinants. Untangling the MAX from other proxies of the lottery, the study reveals that MAX is the true effect in the cryptocurrency market. The results are robust to several sensitivity checks, such as varying MAX measures and holding periods. Originality/value The study pioneers the investigation of lottery-like demand within cryptocurrency markets at the intraday frequency. To the best of the author’s knowledge, this is the first paper untangling the association between MAX and IVOL in the cryptocurrency market and thus offers valuable insights into investor behavior in these emerging markets.
“Değiştirilemez ve benzersiz varlıklar” şeklinde ifade edilen NFT’ler (Non-Fungible Token), kripto para teknolojisinin bir uzantısı olarak doğmuş olmasına rağmen kısa süre içerisinde sanat ve estetik konularıyla iç içe geçmiştir. Dijital sanatın bir göstergesi olan NFT’ler, sadece estetik ve etik açıdan değil, aynı zamanda orijinallik, koleksiyonerlik ve ticarileşme gibi pek çok açıdan incelenmeye değer bir konudur. Yapay zekâ destekli algoritmaların etken bir faktör olarak NFT’lerde yer alması, sanatçının rolünü birçok açıdan dönüştürmüştür. Bunun yanı sıra sanat eserlerinin mülkiyetinin dijitalleşmesi, eserden beklentilerin de değişmesine sebep olmuştur. Bu değişimde NFT’ler üzerinden sanatın ticarî bir meta hâline getirilmesinin büyük bir etkisi bulunmaktadır. Yapay zekâ desteğiyle üretilen sanat eserlerinin, yine yapay zekâ tarafından manipüle edilerek para piyasalarını kontrol altına alabilmesi pek çok spekülasyona yol açsa da Refik Anadol, Murat Pak, Selçuk Erdem, Cem Yılmaz gibi bazı öncü Türk NFT sanatçıları küresel ölçekte yeni bir sanat zemini oluşturmuştur. Bu çalışmada yapay zekâ ile desteklenen NFT’lerin sanat dünyasındaki yeri, Türk NFT sanatçıları örnekleminde değerlendirilecektir. Aynı zamanda sanatın doğuşundan kitlelere uzanan yolda yapay zekânın etkisi ve önemi ile yaratıcılık ve orijinallik kavramlarının nasıl değişime uğradığı tartışılacak, NFT’lerin sanatı yayma gücü ve potansiyeli irdelenirken, dijital teknolojilerin sanatçı ve sanatın alımlayıcısı arasındaki yeni ve doğrudan ilişkiyi nasıl dönüştürdüğü üzerinde de durulacaktır.
We investigate the impact of anonymity and privacy-preservation on cryptocurrency use. We find that privacy coins, which deploy advanced privacy-preserving technologies to enhance trader anonymity, experience a relative increase in usage compared to non-privacy coins following regulatory interventions aimed at countering illegal activities in cryptocurrency trading and use. However, the adoption of privacy coins decreases relative to non-privacy coins after the introduction of regulations restricting the use of privacy-preserving protocols. These findings underscore the significance of privacy as a driving factor in cryptocurrency adoption.
Until recently, digital art was perceived as something of secondary value compared to the physical artistic artifacts. One of the reasons for that being its predisposition for duplication and hence the inability to assign “original artwork” label to the digital file and represent it as a unique object on artistic market. But the rapid pace of popularization of blockchain technologies in creative communities through the use of Non-Fungible Tokens has a seeming potential to change the perception of digital art. The ERC721 standard sets a precedent for authentication and traceability of digital artworks suggesting that the old paradigm might shift, and digital art will gain value and attention comparable with traditional fine art. In this article we discuss the problematics of digital art representation on art market and the issue of digital creations’ pricing. We use photo stocks and print-on-demand platforms as an example for pre-NFTs digital art monetization. We then discuss the changes caused by Non-Fungible Token blockchain technology in the digital art market in recent years and the implications that come with the change. We then illustrate theoretical tenets with expert interview that suggest that while successful NFT projects offers publicity and profit to the creators, the level of complexity and unpredictability of results sets a high bar for entering the market.
Brands are increasingly integrating non-fungible tokens (NFTs) into their marketing tactics, aiming to bolster brand awareness and expand their influence in the metaverse. However, there is limited understanding of the factors that motivate consumers to purchase NFT products and the effective advertising strategies in this context. This paper addresses this gap by examining the influence of self-discrepancy on consumer reactions to NFT advertisements. Results from three experiments demonstrate that individuals with a pronounced self-discrepancy are more inclined to purchase NFTs than non-NFTs. The types of self-discrepancy and NFTs play a role: individuals with a gap between their actual and ideal selves favor virtual-only NFTs, whereas those with a discrepancy between their actual and ought selves favor hybrid NFTs, available in both real and virtual realms. This trend is especially evident for luxury brands. The core mechanism driving these findings is psychological ownership, which shapes consumer purchase intentions toward NFTs.
Despite widespread cross-country support for the arts, artists have increasingly had to bear the burden of higher costs and face lower real wages in the labor market. However, the emergence of distributed ledger technologies has the potential to serve as a catalyst for revitalizing the arts by empowering artists with new tools for ensuring the protection of their intellectual property and receiving remuneration for their creative content. After beginning with institutional details about funding and the labor market in different parts of the arts, this chapter explores the use of Non-Fungible Tokens (NFTs) and the metaverse as tools for empowering artists and expanding their ability to reach audiences directly without as much reliance on centralized intermediaries who have traditionally extracted rents in the value chain. The purpose of this chapter is to introduce the use of NFTs in the arts and their potential as a catalyst for providing greater financial sustainability to artists with proper context on the current challenges and limitations.
The coda considers the contemporary case of so-called NFTs or non-fungible tokens as a phenomenon in which many of the concerns addressed in this book meet. Returning to the art vandal Banksy, who made appearances earlier on in the book, and picking up the discussions about cult value and exhibition value in the work of Walter Benjamin from earlier chapters, the coda develops the notion of crypto value. Rather than introducing a post-exceptionalist politics, the coda argues that crypto value reinforces the fascistic tendencies of the value discourse in art and suggests that the future for a post-exceptionalist aesthetics and politics lies elsewhere.
This chapter explores the legal rights and interests acquired when purchasing an artwork tokenised with non-fungible tokens (NFT), addressing whether holding such a work equates to owning a physical copy. It contextualises the trade of artworks within a blockchain environment and examines recent legislation and court decisions on NFTs and cryptocurrency. A comparative study is conducted between common law and civil law systems, focusing on their concepts of assets and property in relation to NFTs. It recommends the Gulf states to consider lessons from jurisdictions like the United Kingdom, Singapore, Europe, and China and develop their legal framework to potentially align with international practice to facilitate cross-border trade of artwork and digital assets. The chapter concludes that NFTs, recognised as incorporeal assets conferring quasi-property rights, necessitate a recalibration of traditional property concepts. This adaptation should shift from exclusive control to the use and social utility of digital assets, ensuring a legally and ethically robust framework for NFTed artwork in the Gulf states.
A Frino, Robert Gaudiosi, Robert I. Webb, Z. Ivy Zhou
ABSTRACT This study clarifies discrepancies in previous research on the contribution of regulated Bitcoin futures to price discovery, where conclusions have varied between futures leading over spot markets or vice versa. We identify potential reasons behind these conflicting findings, including the choice of price discovery measures, sampling frequencies, modeling windows, futures contracts, and spot exchanges. Using 1‐s sampling frequencies to accurately capture price discovery in the fast‐paced markets and accounting for substantial noise differences between spot and futures markets, we find that the futures market generally leads spot markets, though this price leadership exhibits daily fluctuations. Moreover, we observe a pronounced increase in the futures market's contribution to price discovery around macroeconomic surprises and Tether stablecoin minting tweets.
This study provides a comprehensive review of the current literature on Initial Coin Offerings (ICOs), focusing on their regulatory challenges, success factors, investor behavior, technological innovations, and market dynamics. Drawing from a diverse range of scholarly articles, the review synthesizes key findings to offer a holistic understanding of ICOs and their impact on the digital economy. The research highlights the critical importance of regulatory clarity and investor protection measures in fostering ICO success and mitigating risks. Identified success factors include team expertise, project transparency, and adherence to regulatory compliance. Additionally, the study underscores the influence of investor behavior and sentiment analysis on ICO outcomes, the role of social media and public perception. Technological advancements such as decentralized finance (DeFi) and security tokens are explored for their potential to transform traditional financial systems. The study concludes with a targeted regulatory interventions to ensure the sustainable growth of the ICO ecosystem.