Study shows that NFTs are here to stay, but most people don’t know how to get started.
Most of us know about NFTs. We may not know exactly what they are, or how they work, but many of us have heard the term. According to United Talent Agency’s Web3 division called UTA IQ, 3 in 5 US consumers have heard the term “NFT.” Even more interestingly, 2 in 5 are interested in learning more about NFTs. 10 million participants of the study own an NFT, which only balances out to 6%.
The recently published study offers a lot of insight into consumer patterns.
50% of NFT Owners Flip Them for Money
The 2021 boom in NFTs reached a lot of people. 2 in 5 of the NFT owners in the study purchased an NFT in the latter half of 2021. According to the data, the owners were predominantly male and white. Their motivation for purchasing NFTs appears to be for turning a profit. 1 in 2 NFT owners in the study flipped an NFT for more money, while 1 in 2 traded an NFT for another one.
The landscape continues to transform rapidly, with more and more brands developing projects for blockchain trading in the future. But what is holding some consumers back from taking the plunge?
UTA IQ calls the uncertain group the “NFT Curious” category. This category of people is an important one and securing this market could potentially determine whether or not NFTs stick around as a permanent cultural fixture, ethough 8-in-10 believe NFTs are here to stay.
Volatility is Holding People Back from Investing in NFTs
So what’s holding some people back from investing? The volatility of the market. The top concerns among current NFT owners having an NFT stolen or being scammed (58%), market fluctuation (49%), and the environmental impact of minting NFTs (22%).
It also seems that many aren’t sure how to learn more about NFTs. 69% of the NFT curious category don’t know how to purchase NFTs and/or what to do once they own one. However, most people use social media as their main source of NFT news.
In the closing summary of the study, UTA IQ says, “While NFT ownership is on the path to mainstream adoption, there is a need for accessible resources about how NFTs work, the range of price points, and ownership benefits. Tangible benefits, including those redeemable for physical goods and access to events or experiences, will help NFTs reach the masses.”
Read the entire study here.