The business models of NFTs and Fan Tokens and how they build trust
The business models of NFTs and Fan Tokens and how they build trust
Purpose: the sale of NFTs and the interest in them has “exploded” recently. While there is a lot of information on them, it is not clear what final form they will take. There are several reasons to be uneasy, such as the prevalence of scams, but there are also reasons for optimism and confidence in NFTs. First, they solve the problem of how to own digital assets. Additionally, some of the more reliable and proven cryptoasset exchanges are offering them. However, this innovation will have difficulties reaching a wider audience until more clarity is achieved on two main issues. Therefore, this study aims to clarify what the NFT business models are, and how do they build trust.
Design/methodology/approach: this research attempts to identify the NFT business models with case study analysis in three stages. The first stage is a focus group, followed by 16 short case vignettes and finally four longer case studies.
Findings: the findings show that there are four NFT business models: (1) NFT creator; (2) NFT marketplace, selling creators’ NFTs; (3) company offering their own NFT (fan token) and (4) computer game with NFT sales.
Originality/value: this research brings the literature on business models and NFTs together to offer clarity on the proven NFT business models.
Non-fungible tokens, Non-fungible tokens (NFTs), Fan tokens, Cryptoasset, business model (BM), Trust
Zarifis, Alex
7622e840-ba78-4a4f-879b-6ba0f62363cc
Cheng, Xusen
f88a8aee-cd1d-46f7-8169-8448252003df
16 December 2022
Zarifis, Alex
7622e840-ba78-4a4f-879b-6ba0f62363cc
Cheng, Xusen
f88a8aee-cd1d-46f7-8169-8448252003df
Zarifis, Alex and Cheng, Xusen
(2022)
The business models of NFTs and Fan Tokens and how they build trust.
Journal of Electronic Business & Digital Economics, 1.
(doi:10.1108/JEBDE-07-2022-0021).
Abstract
Purpose: the sale of NFTs and the interest in them has “exploded” recently. While there is a lot of information on them, it is not clear what final form they will take. There are several reasons to be uneasy, such as the prevalence of scams, but there are also reasons for optimism and confidence in NFTs. First, they solve the problem of how to own digital assets. Additionally, some of the more reliable and proven cryptoasset exchanges are offering them. However, this innovation will have difficulties reaching a wider audience until more clarity is achieved on two main issues. Therefore, this study aims to clarify what the NFT business models are, and how do they build trust.
Design/methodology/approach: this research attempts to identify the NFT business models with case study analysis in three stages. The first stage is a focus group, followed by 16 short case vignettes and finally four longer case studies.
Findings: the findings show that there are four NFT business models: (1) NFT creator; (2) NFT marketplace, selling creators’ NFTs; (3) company offering their own NFT (fan token) and (4) computer game with NFT sales.
Originality/value: this research brings the literature on business models and NFTs together to offer clarity on the proven NFT business models.
Text
The business models of NFTs and fan tokens and how they build trust 10-1108_JEBDE-07-2022-0021
- Version of Record
More information
Accepted/In Press date: 3 October 2022
e-pub ahead of print date: 21 October 2022
Published date: 16 December 2022
Keywords:
Non-fungible tokens, Non-fungible tokens (NFTs), Fan tokens, Cryptoasset, business model (BM), Trust
Identifiers
Local EPrints ID: 490006
URI: http://eprints.soton.ac.uk/id/eprint/490006
PURE UUID: 1d96be71-19b4-4b61-8a62-78b70386aaad
Catalogue record
Date deposited: 13 May 2024 16:32
Last modified: 06 Jun 2024 02:21
Export record
Altmetrics
Contributors
Author:
Alex Zarifis
Author:
Xusen Cheng
Download statistics
Downloads from ePrints over the past year. Other digital versions may also be available to download e.g. from the publisher's website.
View more statistics