Non-fungible Tokens Research Articles

A Study on the Impact of Indian Taxation on Virtual Digital Assets in India

The study explores the implications of India's taxation policies on Virtual Digital Assets (VDAs), including crypto currencies and non-fungible tokens (NFTs). With the introduction of the Finance Act of 2022, which imposed a 30% tax on VDA profits and a 1% Tax Deducted at Source (TDS) on transactions, the digital asset landscape in India has undergone significant shifts. This research examines the economic and behavioural impact of these regulations on individual investors, start-ups, and the broader VDA ecosystem. The findings suggest that the flat tax rate and TDS have led to reduced market liquidity and deterred small-scale traders, highlighting challenges in compliance and record-keeping. However, these measures also formalize the VDA market, potentially attracting institutional investors by providing regulatory clarity. The study identifies gaps in the current policies and offers recommendations to balance regulation with market growth, ensuring a sustainable future for India's VDA sector.

Consumer preferences for the visual presentation of non-fungible tokens (NFTs) of luxury products: The role of perceived authenticity

Non-fungible tokens (NFTs) are increasingly used to safeguard luxury products from counterfeits. Despite their increasing adoption, limited research has investigated how brands should communicate the use of NFTs—a novel and complex concept for consumers to comprehend—to maximize their benefits. This research aims to examine this gap by highlighting that the ease of visualization is critical for effective communication. Study 1A demonstrated that consumers prefer a visualized NFT to a non-visualized one for authenticating a luxury product. Study 1B further demonstrated that consumers place greater trust in a visualized NFT and are willing to pay higher prices for luxury products that utilize it. Study 2 demonstrated that consumers have more favorable attitudes toward a luxury product that features an easy-to-visualize NFT than those with a difficult-to-visualize NFT and that perceived authenticity mediates this effect. Finally, Study 3 demonstrated that the positive impacts of easy-to-visualize NFT cues were more significant for luxury than non-luxury products. Subsequently, this study suggests an effective communication strategy for NFT use and provides managerial implications for luxury brands aiming to maximize the benefits of using NFTs.

Time-frequency comovements between news sentiments, Non-fungible tokens, and DeFi assets: evidence from the wavelet analysis

ABSTRACT Growth in digitalization has created a potential boost for Non-fungible tokens (NFTs) and decentralized finance (DeFis) assets in the modern world. Therefore, this study aims to examine the comovement between the recently developed comprehensive measure of news sentiment index (NSI) and selected digital assets. For this purpose, we have utilized the wavelet transform, wavelet correlation, and wavelet coherence econometric model to assess interdependency in both time and frequency between news sentiments and digital assets. Our wavelet correlation and covariance results suggest that almost all the digital assets exhibit a negative relationship with NSI. Moreover, the wavelet coherence results confirm that there is no significant comovement in the short to medium-term horizon, suggesting that both NFTs and DeFi can be used as hedges against the NSI. Furthermore, we observe small patches of significant negative comovement between NSI and digital assets in the long term, which correspond to the initial days of COVID-19. Our results confirm selected digital assets’ hedging role against news-driven uncertainty. This study finding provides essential information to policymakers, international investors, and investment managers to make effective decisions.

Blockchain Technology: Unlocking New Frontiers in Data Management and Transparency

This article explores the transformative potential of blockchain technology in revolutionizing data management and enhancing transparency across various industries. As a decentralized, immutable ledger system, blockchain offers a secure and efficient way to record, share, and verify information, eliminating the need for intermediaries and reducing the risk of fraud. The article reviews the fundamental principles of blockchain, including distributed consensus, cryptographic security, and smart contracts, to highlight how these features improve data integrity and trust in digital transactions. Through case studies in sectors such as finance, supply chain management, healthcare, and government services, the article demonstrates how blockchain can streamline operations, reduce costs, and promote accountability. Particular attention is given to the role of blockchain in improving transparency by providing an auditable and tamper-proof record of transactions, which is especially valuable in industries prone to corruption and data manipulation. The article also addresses the challenges facing blockchain adoption, including scalability issues, regulatory concerns, and the need for standardization. Additionally, the potential of blockchain in emerging applications, such as decentralized finance (DeFi) and non-fungible tokens (NFTs), is discussed, highlighting the technology’s expanding role in reshaping digital economies. The article concludes by emphasizing that while blockchain is still in its developmental stages, its ability to foster greater transparency and more secure data management systems positions it as a key driver of innovation in the digital age. Future research is recommended to explore further integration strategies and address challenges in widespread blockchain adoption.

Tailoring customer segmentation strategies for luxury brands in the NFT market – The case of SUPERGUCCI

This study navigates the intersection of luxury fashion brands and Non-Fungible Tokens (NFTs) in the digital realm. By examining customer segments within the luxury NFT market, this study unfolds insights into changing market trends, consumer behaviors, and brand strategies. Employing data mining approaches, XPath analysis and the k-means clustering algorithm, this study examines user characteristics and behavior on the OpenSea platform, the largest NFT marketplace, with a specific focus on the SUPERGUCCI NFT collection by Gucci. This study identifies three distinct clusters, namely, speculators, casual collectors, and cryptocurrency natives, as well as their characteristics and behavior. The findings illustrate the significant impact of NFTs on customer segmentation and engagement, offering strategic insights for luxury brands navigating technological advancements. As the luxury sector evolves, this study enhances understanding of NFTs' role in consumer engagement and retail strategy within the digital age.

Sustainable digital fashion in a metaverse ecosystem

The fashion industry ranks among the top polluters globally, yet the emergence of virtual worlds offers a chance for brands to switch to digital clothing as a greener option. This research explores whether the metaverse can enhance sustainability in fashion or worsen environmental issues, especially those linked to non-fungible tokens (NFTs). We introduce a game theory model to analyze the strategic dynamics between brand manufacturers and digital fashion platforms, factoring in platforms' abilities to reduce emissions. The model uncovers how these uncertainties influence pricing, investment, and performance outcomes. Our analysis is supported by a case study on DressX, a prominent digital fashion platform, showing that digital fashion brings technological innovation and environmental advantages. Platforms with greater emission reduction capacities and their collaborators witness increased revenues. However, information asymmetry complicates strategic decision-making, and the environmental implications of digital technologies underpinning the metaverse remain a critical concern. Platforms with advanced capabilities gain a competitive edge by managing costs effectively, whereas manufacturers profit at the platforms' expense. However, there is a strategic equilibrium that benefits both sides. Our study indicates that maximizing the environmental benefits of digital fashion demands responsible actions from all stakeholders, including careful technology selection, clear communication of capabilities, cost management, and strategic cooperation. Our game theory approach, combined with a real-world case study, provides a unique perspective on the strategic and environmental dynamics of digital fashion in the metaverse, contributing to the growing body of literature on sustainable fashion and digital ecosystems.

The impact of digital fashion marketing on purchase intention

PurposeThis study aims to examine the effect of digital fashion marketing on consumer purchase intentions. Rooted in the stimulus–organism–response framework, it explores how digital marketing strategies in the fashion industry influence consumer attitudes and satisfaction, ultimately affecting their purchasing decisions.Design/methodology/approachIt is mainly focused on the attitudes, satisfaction, and purchase intentions of young consumers in China and South Korea toward fashion brands stimulated by digital fashion shows and non-fungible tokens. This study modifies the research model through case studies, collects data through questionnaires, and analyzes the data using fsQCA and AMOS.FindingsThe findings of the fsQCA study show that stimuli impact consumers’ attitudes, satisfaction, involvement, and willingness to rewatch. The multigroup analysis shows that social norms and images have a greater influence on individuals in China, whereas Korea has a higher direct effect of individual involvement on consumption behavior.Originality/valueThe study is useful for global fashion brands because it emphasizes the role of digital innovations in shaping consumer–brand relationships and makes strategic recommendations for sustainable growth in the digital fashion landscape.

Ownership in the 21st century: property law of digital assets

ABSTRACT ‘If buying isn’t owning, then piracy isn’t stealing,’ is a common refrain on the internet. With this in mind, the article delves into the landscape of property rights concerning digital assets, debunks common misconceptions and clarifies their legal position in the evolving economy. Through an analysis of their intangible nature, the article argues that digital assets are more akin to intellectual property than to tangible assets. Drawing on a spectrum of case law recognising digital assets as objects of property rights, it examines property law in various legal systems, ranging from common law jurisdictions such as the United States, the United Kingdom and New Zealand, to civil law systems such as Germany, China and Poland. It also explores the notion of digital assets as contractual claims and navigates the complexities of conflicts of laws, advocating for a universal framework to protect digital property and data ownership beyond the realm of Non-Fungible Tokens (NFTs).

Rarity, the WTA-WTP disparity, and price adjustments in the NFT market

Non-fungible tokens (NFTs) have become popular and are frequently traded in marketplaces. The current study examines how an NFT’s within-collection rarity influences sellers’ and buyers’ pricing and pricing dynamics. Relying on the pricing history of CryptoPunks, one of the most famous and valuable NFT collections, we find that rarity’s positive impact on willingness to accept is greater than on willingness to pay, which generates a larger pricing disparity. We further examine rarity’s impact on subsequent price adjustments and find that as rarity increases, buyers are more inclined to make greater price concessions, and sellers are reluctant to reduce their prices. Results also show that rarity’s positive impact on pricing is moderated by the NFT’s past ownership, agents’ trading experiences, and agents’ average holding periods for previous NFTs. Finally, an experiment reveals the mediating role of the focus on rarity that sellers tend to consider more about the NFT’s rarity than buyers, and therefore rarity’s positive impact on pricing is more salient for sellers than buyers.

NFT: An Episode in Digital Arts

The development of digital art has been marked by numerous transformative phases, with the rise of NFTs (non-fungible tokens) representing a pivotal moment in its evolution. This paper posits that the ascent of NFT art is closely linked to the COVID-19 pandemic, which catalyzed a shift towards digital mediums and redefined the relationship between art and technology. NFTs not only revolutionized the creation, distribution, and monetization of digital art by embedding databases and data archives into the artwork itself, but they also challenged traditional notions of ownership and value in the art world. This study examines how NFTs altered the perception of digital art, particularly during the pandemic, and investigates the factors contributing to the subsequent decline in their prominence after the initial surge of interest.

An Analysis of the Adaptability of Switzerland’s Financial Regulatory Framework to Blockchain and Digital Currency Innovations

Switzerland has emerged as a global leader in the regulation of blockchain technology and digital currencies, attracting numerous blockchain startups and investors to its “Crypto Valley.” This paper provides an in-depth analysis of Switzerland’s financial regulatory framework, examining its adaptability to blockchain and digital currency innovations. The study highlights the proactive stance of the Swiss Financial Market Supervisory Authority (FINMA) and the enactment of the Blockchain Act, which have created a flexible and forward-thinking legal environment. Furthermore, the paper explores the opportunities afforded by Switzerland’s regulatory framework, such as legal certainty, privacy protection, and access to European markets. However, it also addresses the challenges that remain, including regulatory arbitrage, scalability issues, and the unique regulatory complexities introduced by decentralized finance (DeFi) and non-fungible tokens (NFTs). The findings suggest that while Switzerland has built a conducive ecosystem for blockchain innovation, it must continue to adapt its regulatory framework to maintain its leadership position in an ever-evolving global landscape.

WHEN IP MEETS NFTs: THE CASE FOR INTELLECTUAL PROPERTY PROTECTION FOR NON-FUNGIBLE TOKENS

The world has seen enormous disruption by new age technologies in every domain of today's economy including the arena of art, music and entertainment. Furthermore, the impact of artificial intelligence and blockchain technology particularly the Non Fungible Tokens (NFTs) has overwhelmed scholars about their understanding of laws related to intellectual property. Advances in technology are expanding the scope of intellectual property beyond traditional patents, trademarks, designs, trade secrets, plant breeders' rights, and more. Various issues related to intellectual property have taken centre stage in the world of NFTs and Blockchains. Intellectual property disputes over virtual goods and NFTs are on the rise, and countries across the world are endeavoring to address the issues related to the protection of virtual goods. This article analyses the nature and scope of protection granted to virtual goods and NFTs in major jurisdictions viz the US and China. Further, the article analyses if the provisions of Indian IP Laws particularly the Trademarks and Designs Acts are sufficient to grant protection to the virtual goods.

РЕЄСТРАЦІЯ ПРАВА ІНТЕЛЕКТУАЛЬНОЇ ВЛАСНОСТІ НА ОСНОВІ ТЕХНОЛОГІЇ БЛОКЧЕЙН

The widespread implementation of blockchain technologies fundamentally changes many processes in the socio-economic and cultural life of modern society. The high level of investment in the implementation of this technology, especially in the field of digital art, confirms the perspective and high interest of business in the further development of the blockchain. At the same time, the appearance of a large number of digital works of art and the possibility of electronic access to the latest developments actualize the issue of copyright protection and quick obtaining of intellectual property (IP) documentation. This issue is also important for teachers and educational institutions because it allows them to protect the results of their work, promote innovation and knowledge in the field. The use of non-fungible tokens is one of the most promising directions for the protection of intellectual property. The article analyzes the experience of implementing blockchain technologies in the process of obtaining intellectual property documents and patents, and copyright protection in general, and also considers systems and platforms designed for copyright protection. We present the model of authorship registration and obtaining IP documents based on blockchain technology. The user’s authorship will be represented in the form of a non-fungible token (NFT), which contains all information about this intellectual property and confirms the user's right to it. Each NFT is unique, allowing creators to present their creations in digital form with guaranteed proof of authorship. In addition, the article presents a fragment of the requirements for the tokenomics model and a diagram of the interaction of agents in the context of the functioning of tokenomics and the model as a whole. During the research, an NFT model was developed. It represents an intellectual property document certifying the authors’ rights to intellectual property objects. We implemented a smart contract that manages the creation and transfer of NFTs using the Cadence language on the Flow blockchain. In addition, the key functional requirements for the system were implemented, among them: registration of authors and experts (reviewers), adding keywords for the selection of experts (reviewers), searching for relevant experts by keywords, implementation of payment functions for reviewers for work performed.

Discovering the critical factors of affecting non-fungible tokens (NFT) purchase intention

This research is to explore the critical factors that affect the NFT trade and investigate the associated relationships of trust, security, privacy, attitudes, and purchase intentions. An empirical survey was conducted and then analyzed using partial least squares structural equation modeling (PLS-SEM) to examine the proposed research model. The results showed that risk perception, trust, and attitude have significant positive correlations with participants' intentions to purchase NFTs; in particular, trust and attitude play critical mediating roles in a proposed conceptual framework. The study's findings can offer valuable insights for decision making processes of stakeholders in the NFT market.

Corpus-based critical discourse analysis of NFT art within mainstream art-market discourse and implications for the political economy of digital art

The recent advent of non-fungible tokens (NFTs) has profoundly disrupted the contemporary art market, but their status remains contested. While advocates tout the democratising potential of NFTs, critics dismiss them as a speculative bubble. This study elucidates the position of NFT art within mainstream art market discourse through an interdisciplinary analysis synthesising critical discourse analysis, corpus linguistics, and the political economy of art. Examining three key 2023 art market reports furnishes empirical insights into how influential institutions frame and valorise NFT art. Linguistic patterns reveal NFTs’ increasingly solid yet variable positioning across art market segments. NFT art appears well-integrated into mainstream discourse but remains emergent at the high end. The analysis reveals a complex picture, with the data showing both positive institutional framing and valorisation of NFT art, as well as the identification of ethical tensions and concerns around issues of accessibility, diversity, and sustainability within the NFT art market discourse. We find NFT art simultaneously amplifies and challenges existing hierarchies, creating new opportunities counterposed by risks.

Adoption of NFT transaction in metaverse platform: a trust transfer approach to leverage trust among users

Purpose Recent growth of metaverse adoption has impacted the adoption of nonfungible tokens (NFTs) which is becoming increasingly attractive. Recently, researchers have explored the adoption of NFTs in metaverse platform. However, considering the risk involved in the transaction, the need for trust on NFT transaction arises. Drawing on trust transfer theory, this study aims to fill this gap by investigating the trust transfer process from trust on metaverse platform and online payment. Moreover, the moderating effect of perceived effectiveness of dispute resolution (PEDR) between trust and adoption of NFT transaction in metaverse platform is explored. Design/methodology/approach This study adopts an empirical approach using a questionnaire survey in India based on simple random sampling technique and is analyzed using structural equation modeling through the Smart PLS software. Findings The findings reveal that users with a higher trust disposition will trust the metaverse platforms, online payments and NFT transactions in the metaverse. Also, the study reveals that trust transfers from the metaverse platform and online payments toward NFT transactions in the metaverse, which further leads to the adoption intent of NFT. The study provides information for platforms on how the trust transfer process occurs and how to manage conflict resolution to attract the trust of users to use NFTs in their transaction. Research limitations/implications The study makes a valuable contribution by identifying the significant impact of trust disposition and social influence in explaining user trust in NFT transactions within the metaverse. Also, the study explores how established trust in conventional online payment mechanisms translates and contributes to trust-building on NFTs and transactional contexts within virtual worlds. Practical implications This study implies that ensuring robust security measures for NFT transactions, such as two-factor authentication, blockchain verification and secure wallets, can reassure users with different levels of trust disposition. Social implications Metaverse platforms should focus on educating users about how trust operates within their environment by providing tutorials, FAQs and support channels to help users navigate the process confidently. Highlighting security measures, user rights and privacy protections can enhance trust toward NFT payment. Originality/value To the best of the authors’ knowledge, this study contributes to research as it is the first of its kind study to explore the factors affecting adoption intent of NFTs transaction in metaverse platform using trust transfer theory. Thereby, developing substantial theoretical and practical contributions by considering an emerging technology.

Mapping the trajectory of blockchain technology and non-fungible tokens: a comprehensive bibliometric analysis

Mapping the trajectory of blockchain technology and non-fungible tokens: a comprehensive bibliometric analysis

Crypto-aesthetics: towards a New Materialist theory of NFT art

ABSTRACT The advent of non-fungible tokens (NFTs) in the art world has led to the emergence of a unique aesthetic sensibility, ‘crypto-aesthetics.’ This nascent phenomenon is marked by the amalgamation of digital and traditional art forms, the exploration of decentralisation and blockchain themes, and an emphasis on scarcity and digital ownership. This article proposes to examine the crypto-aesthetic phenomenon of NFT art through the lens of New Materialism, in particular the key concepts of two major New Materialist thinkers, namely Karen Barad and Jane Benett. Our application of New Materialism elucidates crypto-aesthetics as a distinct occurrence stemming from the interplay of object-reality, agency and networks, sociomateriality, and cultural and historical contexts. Utilising the New Materialism perspective to investigate crypto-aesthetics sheds light on the intricate relationships, processes, and consequences shaping the art market vis-à-vis NFTs and digital art. By acknowledging the agency of matter and the entwined nature of human and non-human entities, a more holistic comprehension of crypto-aesthetics’ transformative potential for artistic expression, value generation, and cultural dynamics can be attained. Our theoretical framework offers a novel lens through which to explore and understand the burgeoning world of NFT art and its crypto-aesthetic tendencies.

“Animation” URL in NFT marketplaces considered harmful for privacy

Non-Fungible Tokens (NFTs) are becoming increasingly popular as a way to represent and own digital property. However, the usage of NFTs also prompts questions about privacy. In this work, we show that it is possible to use NFTs to retrieve enough information to fingerprint users. By doing so, we can uniquely associate users with blockchain accounts. This would allow linking several blockchain accounts to the same user. This work focuses on the vulnerabilities presented by some popular NFT marketplaces. Since NFTs may have HTML files embedded, they allow the use of fingerprinting techniques if not handled carefully. Finally, we provide recommendations and countermeasures for the different actors in this ecosystem to avoid these kinds of tracking methods and, in doing so, safeguard user privacy.

Stylized facts of metaverse non-fungible tokens

Non-Fungible Tokens (NFTs) within the metaverse represent a rapidly emerging sector in the digital asset space. This paper provides a comprehensive review of the metaverse’s history and an analysis of the stylized facts of five metaverse NFTs: Axie Infinity, Decentraland, Enjin Coin, Theta Network, and The Sandbox. We examine market efficiency, volatility clustering, leverage effects, and the return-volume relationship. Our key findings show that all NFT returns exhibit kurtosis values significantly exceeding the standard value of three, indicating more peaked and heavier-tailed distributions than a normal distribution. Autocorrelation analysis reveals statistically insignificant results, suggesting minimal influence of past returns on current returns. The Hurst exponent fluctuates between 0.3 and 0.8, indicating relative inefficiency in log returns with varying degrees of trend reinforcement and anti-persistence. The GARCH(1,1) model confirms the presence of volatility clustering, with high persistence of volatility shocks over time, and most NFT returns exhibit a negative leverage effect, where negative returns decrease volatility. These findings provide critical insights for investors, content creators, and policymakers, emphasizing the need for innovative strategies and regulatory considerations in this evolving ecosystem. A comparative analysis using alternative metaverse-related assets from Bloomberg and Yield Guild Games enhances the robustness of our findings, enriching the academic discourse on digital assets and laying the groundwork for future research in metaverse NFTs.