Artists and NFTs: literacy, perception, and future: a qualitative study on the literacy and exposure of artists to NFTs, perceived positives and negatives of NFTs, and their perceived future.

Abstract

This thesis studies artists' literacy and exposure to NFTs, the perceived positives and negatives of NFTs, and the NFTs’ perceived future. This study utilizes qualitative inductive research methods powered by the Gioia methodology. The study finds a moderate level of understanding and familiarity with NFTs, with most research participants engaged with NFTs. The study finds that artists see numerous benefits to NFTs: monetization; possibilities for more openness in the art world; giving extra tools for building community and engagement; opening new audiences of collectors for artists; ability to capture a resale value; scarcity; and ownership and authenticity of a digital asset. The study further finds that artists perceive numerous drawbacks to NFTs: concerns over the sustainability of the technology; a threat to the traditional art world values and established artists; the connection of NFTs to cryptocurrency; the vibe of the NFT community and the overcommercialization of it; the complexity of the blockchain technology; lack of transparency, regulation, and security; the aspect of monetization and gaining the audience being complex; and there being too much noise in the NFT space. Most research participants still view NFTs as a positive development for artists. The formative influence for most has been their research and experience, conversations with other artists and people in the industry, and seeing established artists using NFTs. The study finds that most research participants perceive NFT as a paradigm shift for artists. As of spring 2023, NFT technology is perceived to be at the Trough of Disillusionment on the Gartner Hype Cycle, about to start, or possibly already starting the ascent into the Slope of Enlightenment.