Community and Consumer Dynamics in NFTs: Understanding Digital Asset Value Through Social Engagement
Abstract
EconStor is a publication server for scholarly economic literature, provided as a non-commercial public service by the ZBW.
Full text
Brahmstaedt, Kristina Article — Published Version Community and Consumer Dynamics in NFTs: Understanding Digital Asset Value Through Social Engagement Journal of Consumer Behaviour Provided in Cooperation with: John Wiley & Sons Suggested Citation: Brahmstaedt, Kristina (2025) : Community and Consumer Dynamics in NFTs: Understanding Digital Asset Value Through Social Engagement, Journal of Consumer Behaviour, ISSN 1479-1838, Wiley, Hoboken, NJ, Vol. 24, Iss. 4, pp. 1630-1655, https://doi.org/10.1002/cb.2482 This Version is available at: https://hdl.handle.net/10419/323723 Standard-Nutzungsbedingungen: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may be saved and copied for your personal and scholarly purposes. You are not to copy documents for public or commercial purposes, to exhibit the documents publicly, to make them publicly available on the internet, or to distribute or otherwise use the documents in public. If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence. http://creativecommons.org/licenses/by/4.0/
Journal of Consumer Behaviour, 2025; 24:1630–1655 https://doi.org/10.1002/cb.2482 1630 Journal of Consumer Behaviour SPECIAL ISSUE ARTICLE OPEN ACCESS Community and Consumer Dynamics in NFTs: Understanding Digital Asset Value Through Social Engagement KristinaBrahmstaedt Chair of Service Management, Ingolstadt School of Management, Catholic University of EichstaettIngolstadt, Ingolstadt,Germany Correspondence: Kristina Brahmstaedt ([email protected]) Received: 31 July 2024 | Revised: 19 January 2025 | Accepted: 4 March 2025 Funding: The author received no specific funding for this work. Keywords: blockchain technology| brand community| communitydriven consumption| needtobelong theory| nonfungible tokens (NFTs) ABSTRACT While nonfungible tokens (NFTs) have emerged as a significant blockchain application, research has largely focused on market dynamics rather than consumer behavior. Through indepth interviews with 21 NFT consumers and a netnographic analysis of Discord interactions (109,517 words), this study develops a comprehensive framework explaining the evolution from initial purchase to sustained or discontinued interest in NFTs. The findings reveal that while profit expectations drive initial purchases, strong community bonds and social identity formation are crucial for maintaining engagement. Specifically, active community participation, both before and after purchases, creates a selfreinforcing cycle where engagement directly influences NFT valuation. However, unfulfilled profit expectations and perceived community abandonment by project leaders often lead to disillusionment. The study extends the NeedtoBelong and Social Identity Theory to the digital asset context, demonstrating how NFT communities serve as platforms for identity expression and emotional support, transcending purely financial motivations. For practitioners, the findings suggest that sustainable NFT projects should prioritize community building and transparent leadership over shortterm speculation. This research provides the first longitudinal analysis of NFT consumer behavior, offering insights into how digital assets can create enduring value through social engagement rather than merely speculative trading. 1 | Introduction Men and women look for groups to which they can belong, certainly and forever, in a world in which all else is moving and shifting, in which nothing else is certain. Eric Hobsbawm The dramatic decline of nonfungible tokens (NFTs) is a stark example of blockchain technology's mixed market reception. Following the rise of cryptocurrencies, NFTs emerged as another application of blockchain technology that enables the verification and ownership of unique digital assets through distinctive metadata (Ko etal.2024). Unlike cryptocurrencies, which function as fungible digital currencies, NFTs are unique and noninterchangeable, theoretically enabling a wide range of applications from digital art to virtual property rights (McCoy2022). While cryptocurrencies have maintained a significant market presence despite volatility, NFTs have experienced a nearcomplete collapse in consumer interest (Golby 2023). Initially heralded as a revolutionary digital innovation, NFTs have largely been abandoned by the consumer market, with most projects now defunct. Despite their potential for diverse applications, This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited. © 2025 The Author(s). Journal of Consumer Behaviour published by John Wiley & Sons Ltd.
1631 their reduction to purely speculative assets ultimately led to their widespread failure as financial returns fell short of expectations (Desmyter2024; Krause2024; Kurutz2024). The evolution of NFT research reflects this shifting landscape. Early studies were largely conceptual, focusing on explaining the underlying technology and functionality of NFTs and outlining potential use cases (e.g., Chandra2022; Valeonti etal.2021; Wilson etal.2022). Subsequently, research emphasis moved toward monetary asset evaluation, treating NFTs primarily as an alternative investment class alongside cryptocurrencies (e.g., Aharon and Demir2022; Bao and Roubaud2022; Schaar and Kampakis2022). More recent scholarly work has broadened in scope, examining consumer purchase motivations, brand applications, and social dynamics between NFT consumers (summarized in Table1). While prior research has predominantly focused on the technical capabilities of NFTs and their valuation based on attributes and scarcity, our understanding of consumer emotional responses and behavioral patterns toward these digital assets remains limited. Existing studies offer isolated insights into NFT evaluation but fail to capture the dynamic nature of consumer attitudes and behavior over time. This gap is particularly significant given that emotions, rather than pure rationality, fundamentally shape human cognition and action (Holbrook and Hirschman1982). The primacy of emotions in consumer decisionmaking is well documented across various domains. For instance, in sustainability research, positive emotions such as awe, empathy, and moral elevation have been shown to drive sustainable consumer choices, even when these decisions conflict with economic selfinterest (White etal.2019). This emotional dimension of decisionmaking is especially relevant for NFTs, where community belonging and social identity often supersede purely rational investment considerations. Understanding the emotional and behavioral dimensions of consumer engagement with NFTs is therefore crucial for unlocking blockchain technology's broader potential in consumer markets, even more so, as the market shifts from speculation to practical applications. Recent failures of NFT projects, such as Nike's Swoosh (McDowell2024) and Moonbirds (Sander2024), demonstrate how poor communication and unclear visions can erode trust. Research into how community structures and leadership influence consumer trust and NFT valuation is essential for developing sustainable applications. Responding to Hofstetter etal.(2024) call for consumer behavior researchers to lead investigations into the blockchain phenomena and shift the focus to the social value of NFTs, this study addresses critical knowledge gaps through the following research questions: RQ1. What are the drivers and motives behind initial NFT purchases? RQ2. How do community dynamics and leadership structures within NFT ecosystems influence consumer behavior and asset valuation? RQ3. What factors lead to the loss of interest in NFTs or continued interest in NFTs? This research employs a qualitative approach, combining indepth consumer interviews with netnographic analysis of realtime community interactions. The choice of qualitative methods is particularly apt for several reasons. First, while existing quantitative studies have identified key factors such as status consumption and perceived exclusivity, they cannot fully capture the complex social and psychological dynamics underlying NFT engagement. Second, qualitative methods are especially suited to exploring how consumer attitudes and behaviors evolve over time (Levy2005)—a crucial aspect given the volatile nature of the NFT market. The current literature reveals a significant methodological gap: of the 16 consumercentric studies on NFTs reviewed, only six incorporated qualitative methods. More notably, just one study (Vega and Camarero2024) conducted indepth interviews with active NFT users, and even then, with a limited sample of eight participants. While quantitative research has provided valuable insights into specific factors affecting NFT engagement, such as boredom (Khelladi etal.2024), financial losses (Ante2024), and security concerns (Vega and Camarero2024), these studies cannot fully explain the complex interplay of factors driving consumer behavior. The role of community dynamics in NFT engagement emerges as a particularly compelling area for qualitative investigation. While quantitative studies have demonstrated correlations between social comparison and NFT purchases (e.g., Xie and Muralidharan 2024), qualitative research reveals how these social dynamics unfold within communities. This study's findings document a clear evolution in consumer priorities, where initial financial motivations transform into deeper social commitments, with participants actively accepting monetary losses to maintain their valued community relationships. Drawing on the NeedtoBelong Theory, Social Identity Theory, and insights from research on digital brand communities, a deeper understanding of consumer behavior around blockchainenabled NFTs as a unique technological and social phenomenon is conveyed. This study combines indepth interviews with netnographic analysis to achieve this understanding, developing a comprehensive framework for explaining NFT consumer behavior. This framework encompasses initial purchase motivations, the influence of community dynamics, and the factors driving both sustained engagement and abandonment. Combining these methods not only addresses current research gaps but also provides actionable insights for academic research and industry applications. 2 | Theoretical Background 2.1 | Consumer Motivation Toward NFTs NFTs launched with great promise and high expectations, with some predicting they could become a major asset class (Ali etal. 2023) and recommending them to diversify portfolios (Ko et al.2022). For creators, NFTs offered a way to monetize digital assets equitably through direct sales to consumers, bypassing intermediaries, while also introducing new
1632 Journal of Consumer Behaviour, 2025 TABLE 1 | Studies on consumer behavior toward NFTs. Authors/Year Topic Method Motives for initial purchase Sustained or decline in interest Community role Ante2024 Drivers of NFT purchases Quantitative (N = 164) Heterogenous motives: utilizers, socializers, speculators, esthetes Speculators lose interest without financial gains; socializers stay engaged for status Community interaction and social status are key for socializers Cho etal.2024 NFT promotion & luxury brands Mixed methods (15 Interviews with luxury industry experts, SEM) Scarcity, resaleability, and trendiness High engagement in communities sustains repeat purchases Community engagement boosts purchase intentions in luxury contexts Griffiths etal.2024 Motivation for NFT purchase Quantitative (N = 486) Intrinsic (selfexpression), extrinsic (financial) Expectations of future value sustain engagement Community engagement supports purchase via social signaling Lee etal.2024 Platform affordances in NFTs Mixed methods (Text mining, SEM) Platform usability, aesthetics, and status value Psychological contract fosters loyalty Status within community linked to highquality NFT portfolios Schlimm etal.2024 Drivers for sports NFTs Quantitative (N = 856) Belonging and identity expression Social interaction sustains interest; lack of it leads to disengagement Essential for connection among sports fan and community building Vega and Camarero2024 NFT adoption factors Mixed methods (8 interviews with NFT buyers, SEM) Profitability, exclusivity, FoMO Perceived risks impact engagement, return expectancy sustains interest Expert communities drive repeat investments Arya etal.2024 Gamification & NFTs in Metaverse Quantitative (PLSSEM) Avatar personalization, gamified experiences Virtual engagement increases brand loyalty Avatars foster emotional connections in communities Fortagne and Lis2024 Purchase intentions Quantitative (SEM, N = 365) Utilitarian and hedonic attitudes Privacy risks reduce interest, exclusivity maintains it — Khelladi etal.2024 Virtual clothing/NFTs Mixed methods (16 interviews with NFT experts, two confirmatory surveys: N = 150 and N = 250) Hedonic and social gratifications Curiosity sustains; boredom decreases interest Community fosters selfexpressions and engagement (Continues)
1633 Authors/Year Topic Method Motives for initial purchase Sustained or decline in interest Community role Prasad etal.2024 Purchase motivations & inhibitors Quantitative (N = 358) Exclusivity, enjoyment, value appreciation Exclusive messaging encourages continued engagement — Xie and Muralidharan2024 Social comparison in NFTs Quantitative: Two experiments Exclusivity and financial benefits Social/financial superiority maintains loyalty — Xie etal.2023 Value perceptions of branded NFTs Quantitative: (N = 1053) Status, financial constraints, innovativeness Financial constraints reduce engagement unless unique value is offered Statusdriven behavior encourages positive WOM in communities Yilmaz etal.2023 NFT value perceptions Quantitative (N = 360, N = 244, and N = 252) Art, uniqueness, and perceived value of ownership Ownership utility sustains holding/selling Communities fosters shared identity and loyalty Kim etal.2022 Role of communities in NFTs Mixed methods (3 Case studies/sentiment and network analysis) Emotional connection, belonging Interest declines with reduced interactions Emotional bonds in communities enhance loyalty Sestino etal.2022 Consumer motivations in art NFTs Quantitative (N = 94, N = 92, N = 182) Status, materialism in art/fashion Innovativeness and uniqueness sustain interest Community strengthens identity expression Zaucha and Agur2022 Commodification of fandom through NFTs Qualitative (Discord analysis) Financialization, fan commodification Market volatility reduces interest Central for fan behavior and expectation shaping TABLE 1 | (Continued)
1634 Journal of Consumer Behaviour, 2025 revenue models, such as royalties for digital artists (Bao and Roubaud 2022; Belk et al.2022) and potentially paving the way for new forms of entrepreneurship in the virtual world (Chandra2022). NFTs have the potential to establish a new marketing subdiscipline called “cryptomarketing,” leveraging blockchain technology for designing, pricing, promoting, and selling goods. This development could disrupt ecommerce by streamlining digital sales and enabling lifetime product data tracking. Users would have access to every data point across a product's lifespan, fostering a more transparent ecommerce ecosystem (Hofstetter et al. 2022). Other potential use cases highlight areas where identity verification is crucial, such as ticketing (Colicev2022), medical records (KostickQuenet etal.2022), academic credentials (Wu and Liu 2023), and real estate (Wilson etal.2022). The NFT market has experienced a dramatic decline, with The Guardian reporting 95% of NFTs as worthless by September 2023 (Golby 2023). This decline, accelerated by the FTX cryptoexchange collapse (StokelWalker2023), is reflected in OpenSea's trading volumes plummeting from $2.5 billion in May 2022 to below $200 million since May 2023 (Dune2024). While media outlets declare NFTs a passing trend (Golby2023; Waite 2023), this pattern aligns with Gartner's Hype Cycle's “Trough of Disillusionment” phase (Gartner 2024), a natural stage where initial excitement wanes and unsuccessful projects fail. However, this phase often precedes the development of more sustainable applications. Early studies on NFTs were largely conceptual, focusing on explaining the underlying blockchain technology and describing initial use cases, such as digital art, collectibles, and applications within the Metaverse and gaming environments (Gonserkewitz etal.2022). Collectibles refer to NFTs belonging to a finite series of items with similar characteristics. These NFTs can encompass various digital formats, including art, trading cards, virtual landscapes, and interactive gaming elements, and they are often traded speculatively (Nadini etal.2021). As NFT trading volumes began to rise in the middle of 2021, research shifted its focus to financial aspects, with initial studies exploring the factors influencing market prices. Findings show that NFT prices are significantly influenced by cryptocurrency fluctuations, particularly Bitcoin and Ethereum, with Ethereum stimulating NFT market activity (Ante2022; Apostu etal.2022). NFT prices are also driven by scarcity, trait rarity, and the resaleability of collectibles, which enhance brand authenticity and consumer loyalty, especially in luxury markets (Chang etal.2024; Cho etal.2024). However, some argue that NFTs are not a distinct asset class due to their high correlation with cryptocurrencies (Gunay and Kaskaloglu2022). Due to numerous uncertainties, particularly around copyright, the legal framework surrounding NFTs and blockchain technology has become the second most investigated topic (e.g., Çaǧlayan Aksoy and Özkan Üner 2021; Fairfield 2022; Goanta2020; Guadamuz2021; Yoder 2022) as well as security risks and fraud (Gilmour2023). As the NFT market matures and legal frameworks slowly evolve, researchers are increasingly turning their attention beyond market dynamics toward consumer behavior. Consequently, a growing number of empirical studies are beginning to provide deeper insights into drivers and motives for purchasing NFTs. However, Table1 shows that while empirical studies have identified various purchase motivations ranging from financial speculation to selfexpression and statusseeking, most rely heavily on quantitative methods, with qualitative approaches remaining scarce. Moreover, existing research tends to examine purchase motivations at a single point in time rather than exploring their evolution throughout the consumer journey. Congruent with the research stream that treats NFTs as speculative investments, findings indicate that the willingness to buy NFTs appears to be, to a large extent, materialistically influenced (PintoGutiérrez etal.2022; Sestino etal.2022). Especially during the purchasing, holding, and selling phases, monetary value becomes the most important driver (Yilmaz etal.2023). Buyers of NFTs generally need certain monetary resources and an affinity for engaging in highly volatile and financially risky environments. Therefore, the main driver behind these purchases is the expectation of benefits, such as profitability and high monetary returns (Vega and Camarero2024). Even NFT projects marketed as platforms for collection, fun, and fandom, like NBA Top Shots, reveal underlying financial interests and strategic calculations. This demonstrates a discrepancy between the expressed intentions of NFT projects and the motivations of their users (Zaucha and Agur2022). Conversely, emotional factors appear to play a more pivotal role during the prepurchase phase, particularly when it comes to the attraction to specific NFTs (Yilmaz etal.2023). Consumers tend to develop hedonic attitudes toward NFTs, driven by features that evoke esthetic pleasure, curiosity, and a sense of innovativeness (Ante2024; Fortagne and Lis2024; Khelladi etal.2024). These hedonic attributes serve as motivators, enhancing the overall appeal and engagement of NFTs beyond purely utilitarian considerations. Arya etal.(2024) suggest that gamified marketing activities provide an additional layer of hedonic value for consumers by enhancing interactivity and immersion. These experiences go beyond mere asset ownership by offering social engagement, emotional connection, and personalized digital interactions through NFTs. This suggests that the gamification of virtual environments, combined with the exclusivity and trendiness of NFTs, could play a role in sustaining consumer interest and enhancing both brand equity and consumer loyalty. Additionally, FoMO (fear of missing out) affects potential buyers who have not yet purchased, driven by a desire to stay updated on trends and avoid missing potential opportunities (Schlimm etal.2024; Vega and Camarero2024). However, Ante (2024) presents a more nuanced view of NFT consumers, highlighting that beyond “investors,” there are also users primarily drawn to the practical utilities that certain NFTs offer. Fortagne and Lis(2024) demonstrate that consumers develop both utilitarian and hedonic attitudes toward NFTs. Utilitarian attitudes are shaped by blockchain features such as security and privacy, along with factors like price value and, most importantly, the functionality of the NFTs themselves.
1635 However, many consumers have yet to fully grasp the functionality of NFTs, as the concept remains relatively new (Schlimm etal.2024). The tendency of NFT buyers to publicly display their collections on social media platforms underscores the importance of status consumption in the context of NFTs. This behavior suggests that owning NFTs transcends mere asset acquisition, reflecting a broader narrative of social prestige and personal identity within the digital space (Alkhudary etal.2022). In their quantitative study, Xie etal.(2023) show that consumers who score high in status consumption and innovativeness are more likely to be attracted to branded NFTs and detect informative, unique, and expressive values from them. They also find NFTs suitable for selfexpression. Consequently, consumers high in social comparison orientation are more likely to make use of the abundant social comparison opportunities for consumers of NFTs on social media or in online brand communities (Xie and Muralidharan2024). In line with these findings, Khelladi etal.(2024) highlight that consumers are driven by hedonic and social gratifications, particularly enjoyment and social interactivity, when purchasing virtual clothes, including NFTs. These motivations further emphasize the role of digital fashion as a medium for selfexpression and social engagement, reinforcing the connection between personal identity and virtual asset ownership. The scarcity and uniqueness of these virtual goods enhance their desirability, making them tools not only for status signaling but also for fostering connections within online communities. As virtual worlds in the Metaverse take shape, NFTs have emerged as key tools for securing ownership of digital assets (Christodoulou etal.2022). The Metaverse, an interconnected network of immersive virtual worlds, allows users to interact, trade, and experience content in a persistent environment (Weinberger2022). NFTs enable unique ownership of virtual goods like avatars, virtual land, and collectibles, supported by blockchain for authenticity and ownership proof (Goanta 2020). While NFTs are often associated with the Metaverse, they also exist independently across various digital platforms (Chan etal.2024). This study focuses on consumer behavior and community dynamics around NFTs as standalone digital assets, emphasizing their broad applicability beyond the Metaverse. Interactive online communities formed around specific NFT collectibles play a crucial role in shaping the social dynamics that influence consumer motivation. Status signals, such as views, likes, and comments on relevant platforms, directly impact the motivation of both NFT buyers and creators. Additionally, community members tend to develop a psychological contract, fostering both attitudinal and behavioral loyalty (Lee etal.2024). In particular, Discord stands out as a key platform in this space, where discussion leaders contribute to shaping the community atmosphere through consistent communication. While market value often drives discussions on Discord, social factors such as a sense of belonging and trust in the information are equally important reasons why users join these communities (Kim et al. 2022; Schlimm et al. 2024). Ante identified a segment of NFT consumers for whom the social aspect of NFTs is the primary value driver. These individuals derive value not only from social interactions with likeminded individuals but also from the entrepreneurial networks such communities provide (Ante2024; Chandra2022). While previous studies have acknowledged the role of userdriven communities, particularly on platforms like Discord (Kim etal.2022; Zaucha and Agur2022), there remains a critical need for a deeper understanding of how these communities influence individual consumer behavior and the overall market dynamics. Specifically, understanding how community interactions and sentiments shape purchasing decisions and loyalty is essential for comprehending the full impact of these communities. Although the balance between economic and social values in NFT ownership is already acknowledged (Yilmaz etal.2023), more research is needed on how these values interplay and affect consumer decisions; for instance, how social benefits from community membership compare to financial gains from investment and how these factors influence loyalty. Also, little is known about how NFTs generate longterm value for brands and consumers. However, Cho etal.(2024) are the first to suggest that NFTs contribute to luxury brands' longterm value by enhancing authenticity equity, brand equity, and relationship equity. Authenticity builds consumer trust and loyalty, while relationship equity fosters emotional connections that drive longterm loyalty. Additionally, consumers engaged in NFTfocused online communities display stronger purchase intentions, making NFTs a valuable promotional tool for building lasting customer relationships and sustaining brand value. However, Cho etal. do not explore how these community dynamics evolve. At the same time, the influence of community leaders, peer interactions, and the social capital generated within these NFT communities on longterm consumer loyalty remains underdeveloped. There is also no detailed examination of how active participation in NFT communities, beyond mere engagement, can impact brand value. It is also not sufficiently addressed how this value is maintained over time. While Griffiths etal.(2024) also suggest that NFTs can be considered “a novel form of luxury goods,” neither they nor Cho etal. address how brands can maintain longterm momentum in the space. This is particularly important, as many luxury brands initially capitalized on the NFT hype but lacked a sustainable strategy. After using NFTs as a shortterm marketing push, these brands often failed to create a lasting approach for managing their digital assets and engaging their communities, ultimately abandoning both the market and their audiences (McDowell2024; Schulz2023). In addition to understanding the motivations and behaviors of NFT consumers, there is a critical need for research on the potential dark sides of NFT investments. As NFTs continue to gain popularity, concerns about financial risk, market volatility, and speculative bubbles have become more pronounced (Kaura etal.2015; Vega and Camarero2024). The lack of clear regulatory oversight and the prevalence of scams and fraud in the NFT space further exacerbate these risks (Santillana Linares2023). Furthermore, the social dynamics within NFT communities, particularly those active on platforms like Discord, can have both positive and negative effects on consumer behavior. While these communities can foster a sense of belonging and drive engagement, they can also amplify groupthink, herd behavior,
1636 Journal of Consumer Behaviour, 2025 and susceptibility to hype and misinformation (Kim etal.2022; Zaucha and Agur2022). Investigating these dynamics is essential to provide a balanced understanding of the NFT ecosystem. 2.2 | NFTs As a Tool for Digital Brand Communities A brand community can be defined as “a group of consumers with a shared enthusiasm for the brand and welldeveloped social identity, whose members engage jointly in group actions to accomplish collective goals and/or express mutual sentiments and commitments” (Bagozzi and Dholakia 2006). The ongoing interactions within such a community reinforce and intensify the consumer's connection to the brand. This engagement nurtures brand identification to the extent that the brand's identity becomes entwined with that of the consumers. Historically, brand communities have been largely independent of geography, even before the advent of the internet, and are notable for their explicit commercial nature. Typically, these communities are drawn to brands that possess a strong image, have a storied history, face significant competition, and are associated with publicly consumed products. Members of brand communities also share a collective consciousness, believing they uniquely understand the authentic, true meaning of the brand. They engage in shared rituals and traditions connected to the brand and hold a moral responsibility toward it (Calder2022; Muniz and O'Guinn2001). NFTs have the potential to serve as powerful tools for engaging online communities and building authentic brand communities. However, there is currently no clear definition of what constitutes a brand in the context of NFTs. Lee etal.(2023) use the term “branded NFTs” to describe established brands that incorporate NFTs into their offerings as a “visualoriented digital art form.” Nike has been at the forefront of this innovation, not only by launching NFT collectibles like other established fashion and luxury brands, such as Burberry and Louis Vuitton but also by creating a communitydriven platform through their app. SWOOSH (McDowell 2022). Meanwhile, NFTnative brands like Bored Ape Yacht Club (Opeyemi Amure etal.2024) and CryptoPunks (Oleaga2023; Wang etal.2023) have also emerged. These brands, which did not exist before their NFT launches, have built strong communities, primarily interacting on platforms like Discord and occasionally connecting in real life. Their credibility as early movers in the space has been key to their success in cultivating loyal followings. However, not all market developments are firmcentric. Work in the consumer culture tradition has shown consumers to be active participants in market dynamics. Goulding and Saren(2007) illustrate subcultural commodification through three stages: rebellion, fragmentation, and commodification, while Martin and Schouten(2014) demonstrate that resistance to existing market logics is not a mandatory prerequisite for new market formation. While financial motivation appears to be the initial driver for NFT purchases, the role of communitydriven consumption in sustaining engagement remains unclear, particularly when financial returns fall short of expectations. Traditional market logic would suggest that consumers disengage when investments fail to yield returns; yet some NFT communities maintain active participation despite financial losses. This raises important questions about how community dynamics might influence consumer behavior and NFT valuations beyond purely economic considerations. 2.3 | NeedToBelong Theory and Social Identity Theory in the Context of NFT Communities The NeedtoBelong Theory posits that establishing and maintaining interpersonal relationships is a fundamental human need. People naturally seek connections with others and experience emotional distress when lacking social contact. When isolated, individuals are driven to pursue new relationships, often forming bonds under adverse conditions by sharing common interests, experiences, or frequent exposure. Once a satisfactory quantity and quality of social interactions are achieved, the motivation to seek new acquaintances decreases. Positive emotions are associated with forming social bonds, emphasizing that most contacts should be pleasant and free from conflict (Baumeister and Leary1995). Brands can serve a social purpose by reflecting social ties such as one's family, community, cultural groups, and reference groups (Reingen etal.1984). This means that brands can be used to satisfy the psychological need to belong. Sicilia etal.(2016) demonstrated that an individual's need to belong can significantly increase the likelihood of engaging in positive wordofmouth (WOM) about the brand to which they feel connected This behavior aligns with the characteristics of brand communities: individuals who feel a sense of belonging to a brand community also feel a moral responsibility toward the brand. This sense of responsibility can include the desire to promote the brand, thereby engaging in WOM behavior and even disregarding negative information about the brand (Sicilia etal.2016). NFTs, as digital assets that often represent unique and collectible items, provide a new platform for fulfilling the need to belong. NFT communities built around specific collections, such as Bored Ape Yacht Club or VeeFriends, create strong, engaged groups of individuals who share a collective sense of identity and common interests. These communities foster connections and interpersonal relationships among members, offering a space for individuals to bond over a shared enthusiasm for the brand or project. Owning an NFT is often required to gain access to a community and serves as a form of social validation within that group. For example, in the VeeFriends community, different types of collectibles, such as Series 1 and Series 2 NFTs, offer varying levels of exclusivity, with Series 1 being rarer and more prestigious (VeeFriends.2022). This tiered structure enhances an individual's sense of belonging and strengthens their emotional ties to the group. Additionally, NFTs are sometimes required for participation in Decentralized Autonomous Organizations (DAOs). A DAO is a blockchainbased organization governed by code and smart contracts, allowing members to make collective decisions and contribute to the project in a decentralized, democratic manner. In some cases, owning specific NFTs grants individuals voting rights or participation in decisionmaking processes within a DAO, further reinforcing a sense of belonging and active engagement within these communities (Ciantar2023).
1637 In this way, NFTs serve as a revolutionary tool for fulfilling the need to belong, offering exclusive membership to digital communities, including DAOs, where members often feel empowered to shape the direction of the project. What makes NFTs especially unique is their ability to provide a sense of ownership that extends beyond traditional brand engagement. Even when the underlying company or organization is not a fully decentralized DAO, NFT holders often perceive their digital assets as granting them a tangible stake in the brand. This feeling of owning a unique piece of the brand fosters a deeper emotional connection and enhances the sense of closeness and loyalty to the brand (Levi2022). By bridging the gap between consumer and creator, NFTs offer an unprecedented level of involvement and personal investment in the brand's future, making them a novel way to engage in a brand community. Brands also play a crucial role in fulfilling psychological needs by enabling people to actively construct, reinforce, and express their identities, as well as differentiate themselves from others. When individuals incorporate brand associations into their selfconcept, a strong link between the brand and their identity is established. This connection, known as self–brand connection, is a key aspect of the relationship between consumers and brands (Belk1988; Escalas and Bettman2003). NFTs further support this by offering consumers a way to express their identity through ownership of digital assets that symbolize membership in exclusive communities. A notable example is the VeeFriends NFT collection, where each collectible is named after a personal characteristic or trait, such as the Aspiring Alpaca, the Compassionate Catfish, or the Empathy Elephant (VeeFriends2024). These NFTs allow consumers to select digital assets that resonate with their values and characteristics, strengthening their selfexpression and their connection to the brand. The Social Identity Theory posits that a person's sense of who they are is based on their group membership(s). The theory suggests that individuals categorize themselves and others into various social groups, which can include groups based on nationality, ethnicity, religion, political affiliation, or even brand communities. This group membership provides individuals with a sense of belonging and contributes to their selfesteem and identity (Ellemers and Haslam2012). In the context of NFTs, individuals may derive a sense of social identity from their membership in NFT communities, where ownership of a particular token confers status and ingroup recognition. People tend to enhance the status of their group (ingroup) while discriminating against or devaluing groups they do not belong to (outgroups), which helps to maintain and enhance their social identity (Tajfel1974). Within the NFT space, this dynamic is often seen in the loyalty of community members and the exclusivity they ascribe to their group, further strengthening their social identity through brand affiliation. 3 | Study 1: Interviews 3.1 | General Methodological Approach Given the scarcity of research on consumer behavior toward NFTs and group dynamics in NFT projects, contrasted with the wellestablished theories from social psychology, I adopted a theoriesinuse approach (Zeithaml etal.2020) with an indepth interview study at its core. My approach focuses on theory elaboration, utilizing theory as a supportive framework to develop new conceptual insights through an inductive, qualitative method (MeesBuss et al. 2022). To achieve this, I combined insights from indepth expert interviews with NFT consumers from a specific global NFT project with experiences from NFT consumers outside of this group. I also incorporated existing theoretical frameworks from social psychology and brand community research alongside previous findings on NFT and crypto consumer behavior. By integrating inductive reasoning (i.e., expert interviews) with deductive reasoning (i.e., theories in social psychology), I ensured that my findings were grounded in prior knowledge of consumer behavior around brand communities. This approach maximizes the value of expert interviews to identify NFTspecific insights related to the drivers and motives of NFT purchases, the loss of interest or continued use of NFTs, as well as the group and monetization mechanics within NFT projects. 3.2 | Sampling and Sample of Expert Interviews To shed light on the individual reasons for investing in NFTs, particularly in specific projects, and to understand the dynamics within an NFT group, I focused on the personal experiences of private NFT consumers, especially those involved in the global NFT project VeeFriends. While the brand did not exist before the sale of its NFTs, its founder, Gary Vaynerchuk, was already well known for his YouTube channel and books on digital marketing. This established personal brand provided a foundation for building a large community around VeeFriends, starting with NFT collectibles and expanding into physical products featuring the same NFT characters, such as trading cards, sneakers in collaboration with Reebok, a physical conference, and even a YouTube cartoon series (Patricia DeLuca2023; VeeFriends2024). VeeFriends exemplifies how many native NFT projects operate. They often begin as niche phenomena within the NFT space. Once they gain traction and build an engaged community, they expand into the physical realm to attract a more mainstream audience, often collaborating with established brands (McDowell and Chitrakorn2021). I recruited NFT consumers through two primary channels. Initially, I began recruitment via a large social business network. Subsequently, I employed snowball sampling to gain contacts with additional members of the VeeFriends group, which eventually granted me access to their German WhatsApp channel. This platform provided further opportunities to recruit interview partners. Their qualifying criteria were to have bought or sold at least one NFT. I utilized theoretical sampling to guide the data collection process. This method involved selecting participants who could provide the most relevant and diverse data to develop and refine the emerging theory. In this iterative process, I continuously collected and analyzed data, making decisions on what to collect next and where to find it based on the findings. For instance, after identifying the first member of the VeeFriends NFT group who exhibited extraordinary commitment and enthusiasm toward NFTs and this group specifically, this sparked my interest to focus further interview sampling on individuals from this community to explore its dynamics.
1644 Journal of Consumer Behaviour, 2025 TABLE 5 | Community role before and after NFT purchase. Categories Prior knowledge Specific interview insights Illustrative quotes Active engagement in community before NFT purchase — Community influence before purchase: Consumers often engage with NFT communities before making a purchase, which helps them gage the project's potential and build trust. Value of early community engagement: Early involvement in a community provides a sense of belonging and deeper understanding, influencing the decision to invest. • I bought some crypto, but it wasn't enough. Then there were delays with the VeeFriends minting process, and I got busy with other things, like singing, and lost track of it. In the end, I realized I wouldn't have had enough to mint anyway. But I stayed in the community. I was already in the VeeFriends Discord before the mint and noticed there were a lot of cool people there. (Interview 14, 44 y, m) • I thought it was coolest that you could meet people there. I had never used Discord before, and when the project started, he opened the Discord or brought people in. I think it had been around for a while, but he got Germany involved, and I was like, wow, this is a whole different world. I only knew him from YouTube and Instagram, and suddenly there were people in a forum. It's a much more intimate space where people actually talk to each other, unlike on a regular social media platform. (Interview 11, 33 y, m) Active engagement in community after NFT purchase • NFTs provide social value by granting access to and membership in exclusive communities (Yilmaz etal.2023) Token gated access: Some NFT communities require ownership of a specific NFT to participate, creating exclusivity and a sense of belonging. Value of community: Active communities are seen as the biggest value providers in the NFT space, crucial for maintaining or increasing the price of NFTs. Vested interest: NFT holders are more active in communities because their investment's value is tied to the community's wellbeing. • Some communities are „gated“or „token gated,“meaning you need an NFT token to participate. For example, you need a token to join the Discord server and chat”. Some are very open, like VeeFriends, where it doesn't matter if you have a token; you can always join in. (Interview 9, 38 y, m) • I would even go so far as to say that communities are currently the biggest value providers in the NFT space. I don't mean value for new project entrants, but rather the main reason the floor price doesn't collapse and might even increase. It doesn't have to be a large community, just an active one with members who truly support the project. (Interview 12, 19 y, m) • I can imagine that people are more active in the community because they have a vested interest in its wellbeing. If the community isn't doing well and isn't active anymore, my NFT won't be worth as much. (Interview 12, 19 y, m)
1645 experiences within the community have been worthwhile, even if they ultimately lost money. This pattern was observed frequently among participants. It contrasts with those who do not engage actively in a community and are more likely to lose interest. Many NFT community members have formed friendships and enjoyed exchanges with likeminded individuals who share their values (refer to Table6 for insights on valuing community over profit). Additionally, many still believe in the plans of the NFT projects they are part of, and the promises made by the founders. As the initial hype fades and demand—and consequently prices—decrease, the depth of trust in the community leader becomes particularly apparent. The presence of a charismatic public figure as the face of the brand seems to influence consumer behavior beyond rational financial considerations, underscoring the powerful impact of personal connections and shared social identity (refer to Table6 for insights on trust in leadership and admiration for the founder). P3a: social identity, developed through friendships in the community, persistent belief in community founder, and shared values, strengthens the positive relationship between NFT purchase and continued interest in NFTs. 3.4.5 | Negative Experiences Lead to Discontinued Interest in NFTs The reasons for discontinued interest in NFTs also highlight the dark sides of digital asset consumption. The overwhelming majority of NFT buyers initially intended to make a profit from their purchases. Instead, many lost significant amounts of money, often several thousand Euros, leading to disappointment and disillusionment (refer to Table7 for insights on financial loss). However, it is noteworthy that, in most cases, the financial loss itself was not the primary cause of disappointment or anger. Rather, it was the unfulfilled excessive promises laid out in the roadmaps of NFT projects and by their founders that led to personal disappointment. NFT buyers often deeply trusted public figures like Gary Vaynerchuk, whom they admired, and felt a sense of betrayal when their trust was broken (refer to Table7 for insights on feelings of betrayal). Additionally, the strategies employed by NFT projects to monetize consumer brand loyalty have increasingly annoyed consumers. While the promise of additional utilities suggested the potential for added value beyond the initial hype, many of these utilities turned out to be more NFTs. One interviewee even compared NFTs to a snowball system, explaining that her NFT purchase merely granted her access to a waitlist to buy even more NFTs. This perception of endless cycles of buying without substantial inherent value has led to growing frustration among consumers, who feel that their loyalty is being exploited for continuous monetization rather than genuine value creation (refer to Table7 for insights on strategies that lead to frustration). Other utilities failed to justify the high prices consumers paid for their NFTs, as they often consisted of lowvalue items like playing cards or baseball caps. Additionally, some utilities, such as reallife events, were inaccessible to international consumers, such as Europeans, because they were held in the US. The overall drop in NFT prices has also left many projects with fewer funds, making the realization of their promised utilities even more uncertain. This discrepancy between promised and delivered value has further fueled consumer dissatisfaction and skepticism about the longterm viability of these projects (refer to Table7 for insights on the failure of utilities to meet expectations). P3b: negative experiences, including disillusionment about profits, feelings of betrayal, and leaders' abandonment of communities, weaken the positive relationship between NFT purchases and continued interest in NFTs. 3.4.6 | Conceptual Framework The conceptual framework (Figure1) was developed to illustrate the complex interplay between the main driver and amplifiers influencing NFT consumer behavior, specifically in relation to purchase decisions and community engagement. This framework emerged from a comprehensive coding process following Gioia etal.(2013), where I began with open coding to identify key themes in the interview data, followed by axial and selective coding to establish meaningful connections between these themes. Through this structured approach, the framework integrates both inductive insights from the qualitative data and deductive elements drawn from the existing literature on consumer behavior and digital assets. The framework distinguishes between two key yet interconnected concepts: initial motives and amplifiers. The initial motive—the expectation of financial profit—serves as the core reason consumers first engage with NFTs (Table2). This motive stems from personal or professional aspirations, reflecting a deepseated desire for economic gain or social capital. In contrast, amplifiers are external factors that intensify the individual's propensity to act on these initial motives (Renner etal.2019). For instance, prior experience with cryptocurrencies or the endorsement of trusted public figures, like Gary Vaynerchuk, adds credibility to NFT investments (Table3), heightening both trust and the fear of missing out (FoMO). Amplifiers act as catalysts, making the pursuit of the initial motive more urgent or appealing by reinforcing the decisionmaking process. They do not introduce new motives but rather intensify existing ones, driving individuals to act more decisively and quickly (P1b–c). In some cases, consumers do not immediately purchase an NFT but instead become actively involved in the community beforehand, whether through online platforms like Discord or at offline events (Table5). This prepurchase engagement not only enhances the perceived value of the NFT but also activates a psychological need to belong. By interacting with the community, potential buyers experience a sense of inclusion and connection, which amplifies their desire to be part of the group, ultimately increasing the likelihood of a purchase (P2). Once the NFT is acquired, strong community bonds—formed through shared values, trust in the project's founders, and the development of personal relationships—further strengthen the consumer's social identity (Table6). These factors enhance the subjective
1646 Journal of Consumer Behaviour, 2025 TABLE 6 | Influence of strong community bonds on continued interest in NFTs. Categories Prior knowledge Specific interview insights Illustrative quotes Lasting friendships within the community —Finding understanding and connection: Members feel more understood and connected at community events and within subgroups than in their everyday lives. Emotional support during crises: Communities offer crucial emotional support during personal challenges, providing a sense of belonging and understanding. Valuing community over profit: Some members prioritize staying part of the community over financial gain, even if it means forgoing potential profits. • It's just that everyone has similar interests and approaches and personalities and goals kind of thing. So, I definitely feel more understood at events like that or in subgroups than I do in normal life. (Interview 20, 42 y, f) • And so even if it went from one piece to 10 or 20. I don't think I would sell it because then I wouldn't be a part of the community anymore. (Interview 20, 42 y, f) • And then the divorce happened. Suddenly, I was the big loser. Almost all my friendships fell apart. People started ghosting me and stopped responding. It got so bad that I left the country and traveled for almost a year because I was so alone. No one wanted to talk to me or have anything to do with me. […] Then I returned to Germany, right when Gary started talking about this. For me, having friends suddenly became important. I thought it was crazy that it was possible to make new friends at my age. Not just international digital friends, but also here in Berlin, in the surrounding area, in Germany. People you now visit, sit in their gardens with, and whose kids are there. And all of this happened because of Gary and the positivity he promoted. (Interview 15, 38 y, m) Persistent belief in the project's founder — Trust in leadership: Members trust the founder to continue their dedication to the project, especially during challenging times. Admiration for the founder: Many NFT community members are motivated by their continued respect and admiration for the project's founder. Alignment with vision and values: The community values the founder's vision, aligning their goals and missions with those of the leader. • I love Gary, so I like being active. One to be like closer to the sun. I just respect him as a businessperson and like, as a kind person. I want to get to know him and be closer to him in any way that happens. So, I know he's got like a billion friends, so he doesn't need another one. But I also figured whoever he's attracting are gonna be like minded to me, so. (Interview 20, 42 y, f) • And as we've seen with Crypto Winter, it can't all be about just making money. So, if you're going to be in it beyond just hoping that it makes money, then you want to find communities that are led by leaders that have similar goal or vision or mission. (Interview 20, 42 y, f) • You have to trust the leader or founder of the project to keep working on it and continue investing their time, even during tough times like we have now or have had in the past. (Interview 13, 37 y, m) Shared values of community members —Common interests and values: Community members often share not just business or technologyrelated interests but also social values. Ease of connection: Early adopters in the space are generally more open and enthusiastic about innovation, making it easier to form connections. Influence of founder's traits: The values promoted by leaders are reflected in the community's culture. • But also, just everyone you run into is like a potential literal friend because they care about business, they care about web3, they care about kindness and empathy and qualities. (Interview 20, 42 y, f) • These were all people who were very open and enthusiastic about innovation because they were so early in this space. It was easier to make connections. Plus, there was a bit of what Gary Vee promotes: kindness, openness, honesty, which are also traits of the VeeFriends. (Interview 13, 37 y, m)
1647 TABLE 7 | Influence of negative experiences on interest in NFTs. Categories Prior knowledge Specific interview insights Illustrative quotes Financial loss • NFT projects can exhibit characteristics akin to gambling, where users are driven to invest increasing amounts of money, ultimately risking significant financial loss (Zaucha and Agur2022) • Most secondary sales of NFTs are below initial purchase prices (Belk etal.2022) Overinvestment and devaluation: Many investors put significant amounts of money into NFTs, only to see their value plummet. Diverse investment and loss: Investors often spread their funds across various NFTs, resulting in more losses than gains. Widespread financial pitfalls: A majority of NFT projects fail to deliver promised returns, leading to financial disappointment. • I've invested around 50 Ethereum in NFTs in total. Today, they're probably worth about eight. (Interview 5, 44 y, m) • I invested in all sorts of things. I lost more money than I made. (Interview 4, 30 y, m) • And I think I have spent a total of 1200—I can even see it here—1250€, and now I have a value of… let me check again… in dollars, so 1250$. Now I have a value of 80$. (Interview 1, 32 y, m) Feeling of betrayal • NFTs are criticized for exploiting vulnerable individuals by taking their money without delivering on promises. Examples include „rug pulls and market manipulation in playtoearn games (Flick2022) • The value of NFT markets has been distorted by „wash trading“, where bad actors manipulate NFT prices by trading between their own wallets to artificially inflate value. This misleads the market and deceives unsuspecting buyers into paying inflated prices (Gilmour2023) Lack of real benefits: NFT holders need to feel that the project's promises are actively being worked on, with tangible benefits like airdrops, utilities, or access being provided. False promises: Promoters selling the idea of quick riches with NFTs often lead to disillusionment. Anger over high costs: High investments in additional NFTs, such as gift codes, can lead to significant anger when expectations are not met. Prevalence of lowquality projects: The majority of NFT projects are viewed as lowquality, created for quick financial gains. Pyramidlike mechanics: The success of NFT projects often depends on attracting more buyers, with early adopters benefiting the most. Limited utilities: Many NFT utilities only offer the ability to purchase more (digital) items, which can be disappointing for holders. • The holders should feel that you are actively working every day on what you promised. They should eventually benefit from having your NFT, whether it's through an airdrop, a utility, or access to something else. But if you just talk a lot and stay transparent for a year without any real progress, your NFT project won't be very successful. (Interview 12, 19 y, m) • They write books titled “Get Rich with NFTs” and promote the wrong idea. I always say that's exactly what I stand against. I don't want the NFT space to be associated with such promises because it can only lead to disappointment. (Interview 19, 31 y, m) • This [false promises] has led to some people buying additional gift codes for very high amounts, several hundred thousand dollars, and they are extremely angry about it. (Interview 15, 38 y, m) • 99% of all NFT projects are junk, just made to make quick money. (Interview 7, 36 y, m) • You could also say that any coin only works based on the mechanic that the more people there are, the better it is, and those who buy early benefit the most. (Interview 19, 31 y, m) • The utilities we get are just the ability to buy more stuff. That's really all it is. (Interview 15, 38 y, m) Neglected community —Communities lack management: Once the hype is over and prices of the NFTs have dropped, communities are often abandoned by the founders. • Only the communities that are maintained and cared for survive. A common criticism is that many communities aren't properly managed, and the organization could often be better. (Interview 13, 37 y, m)
1648 Journal of Consumer Behaviour, 2025 value of the NFT, making the consumer more likely to stay engaged and invested in the project (P3a). Conversely, negative experiences can lead to a loss of interest in NFTs. Common causes include disillusionment over unfulfilled profit expectations or financial losses, feelings of betrayal from unmet promises, and the abandonment of the community by its founders or leaders (Table7). These disappointments often lead to disengagement, with consumers withdrawing from both the NFT project and the community itself (P3b). 4 | Study 2: Netnography The objective of Study 2 was to triangulate the interview findings by analyzing realtime, organic interactions within the VeeFriends community. Specifically, the netnographic analysis of the open, nontokengated Discord channel allowed me to observe how ongoing engagement shapes perceptions of trust, value, and identity, offering a more current perspective that complements the interview data. 4.1 | Method To complement the findings from the interviews and to gain deeper insights into the realtime dynamics within NFT communities, a netnographic study was conducted. Netnography, a method of ethnography adapted for the digital space, was chosen for its ability to capture organic, unmediated interactions within online communities (Kozinets2002). This approach allows for a rich understanding of how collective social behavior and leadership structures within the community influence consumer perceptions and behaviors around NFTs. The data for this study was collected from the open, nontokengated VeeFriends Discord channel over a onemonth period, from September 20, 2024, to October 20, 2024. This platform was chosen as it is a primary hub for community engagement within the VeeFriends ecosystem, offering members the opportunity to discuss projects, share insights, and build social connections. The open nature of this Discord channel ensured that the data reflected a wide range of participant interactions without restricting access based on ownership of NFTs, thereby offering an inclusive view of community dynamics. Netnographic data was collected through passive observation to avoid influencing interactions. During this period, discussions were monitored and archived. To efficiently analyze the 109,517 words of data, the two leading large language models (LLMs), Claude 3.5 Sonnet and GPT4 (McFarland and Tardif 2024) were employed. First, the data was analyzed using GPT4 to identify and quantify elements from the conceptual framework (Figure1). GPT4 systematically coded the discussions, providing frequency counts and representative examples for each framework element. This initial analysis was then refined through Claude 3.5 Sonnet, which introduced a more granular classification by distinguishing between “strong” and “very strong” manifestations of these elements. The concordant sentiment analysis from both LLMs enhanced the reliability of the findings, while Claude's analysis revealed additional contextual nuances, such as the local disparity between members. Following recent Nature guidance on using LLMs in research (“What Is in Your LLMBased Framework?”, 2024), I compared the outputs of these two different models to ensure robust results. LLMs have emerged as a promising tool for qualitative data analysis, with studies demonstrating their ability to detect psychological constructs such as sentiment and emotions, outperforming FIGURE 1 | Conceptual framework explaining consumer behavior toward NFTs.
1649 Englishlanguage dictionary analysis and competing with finetuned machine learning models (Drápal et al. 2023; Rathje etal.2024; Şen etal.2023). Research indicates that LLMs can match the performance of experienced human analysts in identifying, categorizing, and summarizing key themes. Furthermore, these models have demonstrated the capacity to uncover novel thematic elements that human analysts might overlook (Arora et al. 2024). Recent preprints suggest that in some classification tasks, LLMs might even achieve higher accuracy rates than human coders (Chew etal.2023; Törnberg2023). 4.2 | Results The netnographic analysis strongly supports the key elements of the conceptual framework, highlighting the motivations behind NFT purchases, community engagement, and eventual disengagement or abandonment. It also reveals the factors driving the perceived valuation of these assets. Therefore, the data provide clear evidence of price gains and business reputation as initial motives for purchasing. Table8 reflects how strongly the elements from the conceptual framework align with the retrieved Discord data. The netnographic analysis strongly supports the key elements of the conceptual framework, demonstrating clear patterns in NFT purchase motivations, community engagement, and the factors driving perceived asset valuation. Initial motives for purchasing NFTs show a strong presence of price gain expectations and reputationbuilding aspirations. As one member expresses: “Pointless though as they are worth nothing” (VEXED, October 19, 2024), reflecting the centrality of financial returns in early motivations. The data reveals that many community members seek to establish their reputation through knowledge sharing and trading activities, demonstrating that business reputation is a significant initial motivator. Trust emerges as a crucial amplifier, particularly trust in influential figures like Gary Vaynerchuk: “Come hangout @everyone @here www. VeeFr iends. com/ live:” (garyvee, October 19, 2024). The community demonstrates strong engagement through high Discord activity and subgroup organization, with members showing a pronounced need to belong: “Hey! Of course you are welcome!” (Happygamer, October 19, 2024). Social identity formation is evidenced through shared experiences and community events: “Nice ice breaker at NYCC with Ninja” (BrownMamba824, October 17, 2024). While some members express disillusionment—“Is anyone that bought VF2 rich yet? Oh nvm. Gary was the only one that got rich off it. Silly me” (MiTCHaPaLOOZa, October 19, 2024)—the overall sentiment in the community remains notably positive. This positive sentiment likely stems from several factors. First, members who experienced complete disillusionment may have already departed the community, creating a selection bias in the observed interactions. Second, remaining members maintain optimism about potential value appreciation, recognizing that community vitality could influence NFT values: “The floor is so low that OpenSea is changing its name to just O“ (The Deezer, October 19, 2024). This humorous commentary, while acknowledging market challenges, demonstrates the community”s resilience. Additionally, the positive sentiment appears to be sustained by strong social bonds and shared experiences that transcend purely financial motivations. Members actively work to maintain an encouraging atmosphere, potentially understanding that community attractiveness could influence future NFT values. The international nature of the community also contributes to this dynamic, with members across different time zones maintaining engagement despite varying levels of access to community benefits. The data reveals a particular tension among European members, who express frustration about limited access to NFT utilities, such as exclusive merchandize drops and events that are primarily U.S.- focused. This geographic disparity in access to benefits appears to create two distinct experience levels within the community. The data thus suggests that while NFT value remains anchored in financial speculation, the worth of these digital assets extends beyond market prices to encompass social capital and community belonging. The strong presence of community bonds and social identity elements indicates that even when financial returns disappoint, these social factors can sustain engagement and perceived value. However, this finding should be considered within the context of potential survivor bias, as the analysis captures only currently active community members rather than those who may have already disengaged. 5 | Discussion This study represents a pioneering effort, offering one of the first empirical analyzes of consumer behavior toward NFTs that goes beyond examining initial purchasing motivations. The primary objective was to deepen our understanding of blockchain technology's application by building on existing conceptual studies (Ali etal.2023; Chohan and Paschen2023; Ko etal.2024; Valeonti etal.2021; Wilson etal.2022) and advancing initial empirical research, which has primarily focused on initial purchasing motives rather than the sustained drivers of digital asset value. In this pursuit, I aimed to respond to Hofstetter etal.'s(2022) call for further research on how consumer engagement with NFTs may evolve over time. The exploration of sustained engagement remains largely peripheral. Analysis of existing studies (Table1) shows that most research treats sustained interest as a secondary outcome rather than a focal research question. The findings regarding sustained interest are typically presented as brief observations, such as that market volatility reduces interest (Zaucha and Agur2022) or curiosity sustains and boredom decreases interest (Khelladi et al. 2024), without deeper investigation into the underlying mechanisms or temporal dynamics. While existing studies identify some factors influencing continued engagement, these insights are often limited to simplistic cause –effect relationships, likely due to the predominantly quantitative methods used: financial constraints reduce engagement (Xie etal.2023), privacy risks dampen interest (Fortagne and Lis 2024), and social interaction fosters engagement
1650 Journal of Consumer Behaviour, 2025 (Schlimm etal.2024). Although isolated influences have been noted, ranging from psychological contracts (Lee etal.2024) to exclusive messaging (Prasad etal.2024), the field lacks a cohesive theoretical framework to understand how user engagement with NFTs evolves over time. This study addresses these limitations by developing a comprehensive theoretical framework that traces the nuanced journey from initial NFT purchase to either sustained or diminished interest. Through my qualitative investigation, I identified not just isolated factors but their complex interactions across various TABLE 8 | Alignment of discord data with conceptual framework (Figure1). Element Presence in the data Examples/Evidence Initial motives Discussions of NFT value appreciation, building reputation through knowledge sharing – Price gains Strong Conversations about investment strategies, character choices, and price discussions – Access to business contacts Moderate Implicit in community networking, though not explicitly stated – Build reputation Strong Members sharing purchases and insights to establish credibility and expertise Amplifiers – Trust in friends/family Strong Friendly interactions, advice, and community milestones celebrated collectively – Trust in influential personas Strong References to Gary Vee and prominent figures driving NFT interest – Access to a community of likeminded people Very strong High engagement, shared enthusiasm, and common interests in NFTs and crypto – Artificial scarcity Strong Discussions about the rarity of NFTs and their perceived value – Promises of added value Strong Conversations highlighting potential longterm gains and unique characteristics of certain NFTs Active engagement in NFT community – High activity on Discord Very strong Frequent conversations, engagement in NFTrelated topics, and shared updates – Attending events Moderate Mention of digital events and plans, though offline events are not explicitly detailed – Organizing subgroups Strong References to exclusive chats (e.g., “Spec chat”) and subgroup organization – Need to belong Strong Public congratulations and celebrations of purchases or participation in events provide affirmation and reinforce the value of being part of the community; excitement of acquiring rare assets suggest that members feel a need to belong to the “ingroup” of owners Strong community bonds – Found friends in the community Very strong Regular checkins, personal connections, and supportive interactions – Persistent belief in community founder Strong References to Gary Vee and belief in leadership driving community value – Shared values Strong Enthusiasm for digital ownership, creativity, and communitydriven innovation – Social identity Strong Members proudly displaying their holder status (particularly holders of “spectacular” NFTs), sharing their level of engagement through Discord levels, and creating ingroup language and references Negative experiences – Feelings of betrayal Limited Disappointment expressed about perceived lack of outreach or neglect from the community – Disillusionment with NFTs Moderate Concerns about pricing and utility reflect skepticism or mixed emotions
1651 stages of consumer engagement. The framework highlights how initial motives, such as financial gain or networking opportunities, interact with amplifiers, notably trust factors like endorsements from friends or influencers, to drive NFT purchases (P1a–c). Critically, it also reveals how the “need to belong” (P2) acts as a psychological motivator for purchasing NFTs, even when financial incentives are insufficient. My findings emphasize the crucial role of the community within the NFT ecosystem. Community members not only engage in positive WOM but also organize offline events, fostering engagement that extends beyond digital platforms. The framework illustrates how engagement pathways diverge based on community experiences: strong community bonds that nurture social identity (P3a) can lead to sustained interest, while negative experiences, such as unmet profit expectations or perceived community neglect (P3b), might negatively influence continued interest in NFTs. Importantly, the interview data and Discord netnography reveal cases where members, despite disappointment with financial gains, remain engaged due to the social value derived from the community, effectively substituting anticipated monetary rewards with social connections. 6 | Implications 6.1 | Theoretical Implications This study offers three significant theoretical contributions in the areas of consumer behavior toward NFTs, the role of community dynamics in this ecosystem, and the psychological mechanisms that drive digital asset valuation and engagement. First, it confirms that the expectation of financial gains—either directly through price appreciation on platforms like OpenSea or indirectly through access to business networks—serves as the primary motivation for purchasing NFTs. However, this study is the first to provide a comprehensive view of additional amplifiers that shape consumer behavior in the final purchase decision. Furthermore, it demonstrates that open communities can act as a gateway for hesitant consumers, as they fulfill the psychological need to belong, ultimately encouraging NFT purchases. Second, this study demonstrates that active community engagement can foster a sense of social identity, with members shaping their selfperception partly through their association with the NFT community. This is particularly evident in the VeeFriends community, where some members identify closely with their NFTs, referring to themselves by their NFT characters, such as “Hangout Hawk.” The sense of identity is especially meaningful for individuals who may have felt isolated, such as those experiencing personal challenges like divorce. They select communities that align with their values and beliefs, forming friendships and finding a sense of belonging and selfexpression that improves their emotional wellbeing. This dynamic also aligns with the principles of brand community, where communities serve as platforms for social interaction, identity expression, and mutual support (Bagozzi and Dholakia2006; Belk1988). The research propositions suggest that active community engagement before and after NFT purchases significantly drives the value of these digital assets, creating a selfreinforcing cycle where activity generates value, prompting further activity, a mechanism overlooked by previous research. However, the importance of trust in the founder's longterm vision was consistently emphasized, with some members showing signs of doubt regarding VeeFriends founder Gary Vaynerchuk's intentions. This suggests that NFTs remain inextricably tied to financial interests, whether through potential profit or utility that adds value beyond ownership. The connection between financial expectations and community engagement highlights the dual role of NFTs as both assets and identity markers, underscoring the complex motivations that sustain member loyalty. Third, this study is the first to track a specific NFT community over 3 years, revealing how sentiment toward NFTs evolved through phases of rapid growth, sharp decline, and eventual stabilization. Early on, NFT projects launched by major brands, particularly fashion brands in the Metaverse, generated excitement, but these initiatives were often shortlived, leaving little insight into what drove the eventual waning of interest. My findings indicate that disillusionment with profits, or even substantial financial losses, often reduces interest in NFTs, which is unsurprising given that financial gain is frequently the primary motivation for initial purchases. However, a deeper cause of declining interest appears to be the perceived abandonment of communities by their leaders or managers, resulting in feelings of personal betrayal and disappointment due to a lack of longterm vision. This highlights the need for NFT applications that transcend pure speculation, suggesting that sustainable value lies in creating NFTs with enduring utility and purpose. This study makes important theoretical contributions to both the NeedtoBelong Theory and Social Identity Theory by extending their application to digital asset communities. While the NeedtoBelong Theory has evolved from solely studying physical social bonds (Allen etal.2022; Baumeister and Leary1995) to examining belonging in social media contexts (Büttner etal.2023), this research further extends its application by revealing how blockchainbased communities create a distinct form of belonging through the unique combination of financial investment, digital ownership, and social connection. Specifically, I demonstrate that NFT communities create a novel form of belonging where digital asset ownership serves as both an entry ticket to social connection and a symbol of shared values. This extends the NeedtoBelong Theory by showing how the ownership of blockchainbased assets can create legitimate social bonds that are simultaneously rooted in financial and social motivations. Regarding Social Identity Theory, the study reveals how NFT ownership creates a distinctive form of social identity construction where digital assets serve dual roles: as financial investments and as identity markers. This dual nature presents a theoretical innovation in Social Identity Theory, as it demonstrates how economic and identitybased motivations can become intrinsically linked in digital communities. Unlike traditional brand communities, where identity formation is primarily social (Ellemers and Haslam2012; Tajfel1974), NFT communities show how identity can be simultaneously shaped by financial speculation and social belonging, creating a new theoretical framework for understanding identity formation in digital asset markets. While Hofstetter etal.(2024) established that NFTs are predominantly driven by social value rather than intrinsic value, this
1652 Journal of Consumer Behaviour, 2025 research reveals the specific mechanisms through which this social value manifests in NFT communities. Particularly, it shows how community engagement creates tangible value through three channels: first, by serving as an entry point for hesitant consumers by fulfilling psychological needs; second, by enabling identity construction through NFT ownership; and third, by fostering sustained engagement that creates a selfreinforcing cycle of value creation. Moreover, while Hofstetter etal. noted that “NFT social value is built in many asyet unstudied ways” (2024), this longitudinal study of a specific NFT community provides concrete evidence of how these social value mechanisms operate and evolve. This research demonstrates that sustainable NFT communities require both active community engagement and trust in leadership's longterm vision—factors that go beyond the initial social value signals identified in previous work. 6.2 | Managerial Implications The findings of this study point to a promising direction for the future of NFTs, where brands may prioritize longterm digital asset value by building fan communities, potentially structured as DAOs. DAOs could offer a new model of brandconsumer cocreation by allowing members to collaborate on shared goals without a formal management structure, though this approach would require brands to cede some control. Unlike traditional NFT communities, which often revolve around central figures (e.g., VeeFriends), a true DAO structure could reduce risks for NFT enthusiasts by fostering transparency and shared ownership. This approach may also contribute to the success of NFT projects, as several consumers reported in the interviews that some projects failed due to insufficient consideration of community input. The data also reveal that many NFT community members form strong parasocial relationships with leaders, often idolizing them and following their advice without critical scrutiny. Many members invest excessive time in digital spaces like Discord, driven by psychological needs such as the desire for belonging and the gradual formation of social identity. Unfortunately, in some cases, leaders have exploited this trust for personal gain, leaving communities feeling betrayed. NFTs, when leveraged to build brand communities, have the potential to foster loyalty if brands emphasize transparency, accountability, and the delivery of promised utilities. Shifting the focus from speculative gains to utilities that strengthen community bonds and foster a sense of belonging can redirect consumer interest from purely financial motives to social and emotional engagement. Integrating trusted public figures and creating opportunities for meaningful social interactions can further enhance the appeal of NFT projects. However, brands must carefully manage consumer expectations, as unmet promises— whether financial or utilitybased—can lead to dissatisfaction, disillusionment, and potential backlash, ultimately undermining brand reputation and loyalty efforts. 6.3 | Limitations While the study provides valuable insights into NFT consumer behavior, it is not without limitations. The sample size, though significant for qualitative research, may not fully capture the diversity of NFT consumers. Future research should aim to include a broader range of participants from different NFT communities. An important limitation stems from studying the NFT community VeeFriends where (at least basic) membership is not contingent on NFT ownership. While this characteristic provided unique insights into community formation, it prevented us from fully examining Hofstetter etal.'s(2024) proposition about how high prices might reduce social value in NFT communities. In closed NFT communities where membership requires token ownership, high prices could potentially limit access to social value, affecting community dynamics differently than observed in our study. Future research should investigate communities where NFT ownership is a prerequisite for participation to better understand the relationship between price barriers and social value creation. Furthermore, while this study provides deep insights into buyer experiences, it adopts a primarily buyercentric perspective, not capturing the role of NFT creators in the ecosystem and the dynamic interplay between buyers and creators (Lee etal.2024). Additionally, the rapidly changing landscape of blockchain technology and digital assets necessitates continuous investigation to keep abreast of emerging trends and developments. There is an emerging need for a clear definition and stronger differentiation between the various types of NFTs. Some NFTs serve as collectibles aimed at consumers who build communities around them, while others provide tokenbased functionalities that may not be directly visible to consumers. Therefore, companies could be faced with the decision to adopt blockchain technology that operates in the background, not visible to the consumer, or to employ NFTs as a tool for community brand building. In conclusion, this study offers a comprehensive understanding of the drivers and motives behind NFT purchases, the factors leading to the loss or continued interest in NFTs, and the role of communities in shaping consumer behavior. Integrating qualitative research findings with established theories in social psychology provides a robust framework for future research and practical applications in the NFT space. As the NFT market continues to evolve, understanding the complex interplay between financial and social factors will be essential for realizing the full potential of this innovative technology. Acknowledgments I extend my deepest gratitude to all the interviewees who generously shared their time, insights, and experiences. Your openness and willingness to participate made this study possible. Thank you for your invaluable contributions. Open Access funding enabled and organized by Projekt DEAL. Conflicts of Interest The author declares no conflicts of interest. Data Availability Statement The data that support the findings of this study are available on request from the corresponding author. The data are not publicly available due to privacy or ethical restrictions.
1653 References 2024. “What is in Your LLMBased Framework?” Nature Machine Intelligence 6, no. 8: 845. Aharon, D. Y., and E. Demir. 2022. “NFTs and Asset Class Spillovers: Lessons From the Period Around the COVID19 Pandemic.” Finance Research Letters 47: 102515. Ali, O., M. Momin, A. Shrestha, R. Das, F. Alhajj, and Y. K. Dwivedi. 2023. “A Review of the Key Challenges of Nonfungible Tokens.” Technological Forecasting and Social Change 187: 122248. Alkhudary, R., B. Belvaux, and N. Guibert. 2022. “Understanding Nonfungible Tokens (NFTs): Insights on Consumption Practices and a Research Agenda.” Marketing Letters 34, no. 2: 321–336. Allen, K. A., D. L. L. Gray, R. F. Baumeister, and M. R. Leary. 2022. “The Need to Belong: A Deep Dive Into the Origins, Implications, and Future of a Foundational Construct.” In Educational Psychology Review, Vol. 34, 1133–1156. Springer. Ante, L. 2022. “The NonFungible Token (NFT) Market and Its Relationship With Bitcoin and Ethereum.” FinTech 1, no. 3: 216–224. Ante, L. 2024. “The Polychotomy of NFT Ownership: Motivational Heterogeneity and Underlying Drivers.” Digital Business 4, no. 2: 100091. Apostu, S. A., M. Panait, L. Vasa, C. Mihaescu, and Z. Dobrowolski. 2022. “NFTs and Cryptocurrencies—The Metamorphosis of the Economy Under the Sign of Blockchain: A Time Series Approach.” Mathematics 10, no. 17: 3218. Arora, N., I. Chakraborty, and Y. Nishimura. 2024. “AIHuman Hybrids for Marketing Research: Leveraging LLMs as Collaborators.” Journal of Marketing 89, no. 2: 43–70. Arya, V., R. Sambyal, A. Sharma, and Y. K. Dwivedi. 2024. “Brands Are Calling Your AVATAR in Metaverse–A Study to Explore XRBased Gamification Marketing Activities & ConsumerBased Brand Equity in Virtual World.” Journal of Consumer Behaviour 23, no. 2: 556–585. Bagozzi, R. P., and U. M. Dholakia. 2006. “Antecedents and Purchase Consequences of Customer Participation in Small Group Brand Communities.” International Journal of Research in Marketing 23, no. 1: 45–61. Bao, H., and D. Roubaud. 2022. “NonFungible Token: A Systematic Review and Research Agenda.” Journal of Risk and Financial Management 15, no. 5: 215. Baumeister, R. F., and M. R. Leary. 1995. “The Need to Belong: Desire for Interpersonal Attachments as a Fundamental Human Motivation.” Psychological Bulletin 117, no. 3: 497–529. Belk, R. W. 1988. “Possessions and the Extended Self.” Journal of Consumer Research 15: 139–168. Belk, R., M. Humayun, and M. Brouard. 2022. “Money, Possessions, and Ownership in the Metaverse: NFTs, Cryptocurrencies, Web3 and Wild Markets.” Journal of Business Research 153: 198–205. Büttner, C. M., F. Lalot, and S. C. Rudert. 2023. “Showing With Whom I Belong: The Desire to Belong Publicly on Social Media.” Computers in Human Behavior 139: 107535. Çaǧlayan Aksoy, P., and Z. Özkan Üner. 2021. “NFTs and Copyright: Challenges and Opportunities.” Journal of Intellectual Property Law and Practice 16, no. 10: 1115–1126. Calder, B. J. 2022. “Customer Interaction Strategy, Brand Purpose and Brand Communities.” Journal of Service Management 33, no. 4–5: 747–757. Cassino, D. 2024. “Why Crypto Bros Love Trump.” The Washington Post. https:// www. washi ngton post. com/ opini ons/ 2024/ 09/ 20/ trump - crypt ocurr encypollmascu linity/ . Chan, S., D. Chandrashekhar, W. Almazloum, et al. 2024. “Stylized Facts of Metaverse Nonfungible Tokens.” Physica A: Statistical Mechanics and its Applications 653: 130103. Chandra, Y. 2022. “Nonfungible TokenEnabled Entrepreneurship: A Conceptual Framework.” Journal of Business Venturing Insights 18: e00323. Chang, C. W., C. J. Lai, and C. C. Yen. 2024. “Examining Drivers of NFT Purchase Intention: The Impact of Perceived Scarcity and Risk.” Acta Psychologica 248: 104424. Chew, R., J. Bollenbacher, M. Wenger, J. Speer, and A. Kim. 2023. “LLMAssisted Content Analysis: Using Large Language Models to Support Deductive Coding.” arxiv:2306.14924v1 [Cs.CL]. Cho, M., E. Ko, and C. R. Taylor. 2024. “Do Nonfungible Tokens Create LongTerm Value for Luxury Brands? The Effect of NFT Promotions on Customer Equity.” Computers in Human Behavior 159: 108347. Chohan, R., and J. Paschen. 2023. “NFT Marketing: How Marketers Can Use Nonfungible Tokens in Their Campaigns.” Business Horizons 66, no. 1: 43–50. Christodoulou, K., L. Katelaris, M. Themistocleous, P. Christodoulou, and E. Iosif. 2022. “NFTs and the Metaverse Revolution: Research Perspectives and Open Challenges.” In Blockchains and the Token Economy Theory and Practice, edited by M. C. Lacity and H. Treiblmaier, 139–178. Palgrave Macmillan. Ciantar, M. 2023. “NFTs, DAOs and Smart Contracts: Where Is the Decentralisation?” International Journal of Law in Changing World 2, no. 3: 52–79. Colicev, A. 2022. “How Can NonFungible Tokens Bring Value to Brands.” International Journal of Research in Marketing 40, no. 1: 30–37. DeLuca, P. 2023. “VeeFriends Expands from Digital to Phygital.” LicenseGlobal. https:// www. licen seglo bal. com/ enter tainm ent/ veefr iends - expan dsfromdigit altophygital. Desmyter, S. 2024. “The Aura Of Cryptocurrencies (and The Death Of NFTs).” Forbes. https:// www. forbes. com/ sites/ steve ndesm yter/ 2024/ 06/ 13/ theauraofcrypt ocurr encie sandthedeath - ofnfts/1/ 8. Drápal, J., H. Westermann, and J. Savelka. 2023. “Using LLMs to Support Thematic Analysis in ELS.” arxiv:2310.18729v1 [Cs.AI]. Dune. 2024. “Monthly ETH trading volume on OpenSea.” https:// dune. com/ queri es/ 37457 84/ 6300605. Ellemers, N., and S. A. Haslam. 2012. “Social Identity Theory.” In Handbook of Theories of Social Psychology, edited by P. A. M. Van Lange, A. W. Kruglanski, and E. T. Higgins, vol. 2, 379–398. Sage. Escalas, J. E., and J. R. Bettman. 2003. “You Are What They Eat: The Influence of Reference Groups on Consumers' Connections to Brands.” Journal of Consumer Psychology 13, no. 3: 339–348. Fairfield, J. A. T. 2022. “Tokenized: The Law of NonFungible Tokens and Unique Digital Property.” Indiana Law Journal 97, no. 4: 1262–1312. Flick, D. C. 2022. “A Critical Professional Ethical Analysis of NonFungible Tokens (NFTs).” Journal of Responsible Technology 12: 100054. https:// doi. org/ 10. 1016/j. jrt. 2022. 100054. Fortagne, M. A., and B. Lis. 2024. “Determinants of the Purchase Intention of Nonfungible Token Collectibles.” Journal of Consumer Behaviour 23, no. 2: 1032–1049. Gartner. 2024. “Gartner Hype Cycle.” Gartner. https:// www. gartn er. com/ en/ resea rch/ metho dolog ies/ gartn erhypecycle . Gilmour, P. 2023. “Editorial: Nonfungible Tokens: CryptoPunks and the Art of Wash Trading.” Journal of Money Laundering Control 26, no. 4: 681–683. Gioia, D. A., K. G. Corley, and A. L. Hamilton. 2013. “Seeking Qualitative Rigor in Inductive Research: Notes on the Gioia Methodology.” Organizational Research Methods 16, no. 1: 15–31. Goanta, C. 2020. “Selling LAND in Decentraland: The Regime of Nonfungible Tokens on the Ethereum Blockchain Under the Digital Content