Main motive behind buying NFTs is ‘to make money’

However, most people who buy an NFT do not actually make any profit from the transaction

Non-fungible token (NFT) image on a smartphone screen                                 
NFTs are largely seen as an investment opportunity, a Twitter poll has revealed – Photo: Getty Images
                                

Despite nearly two-thirds of people who purchase non-fungible tokens (NFTs) saying they do so “to make money,” over half of them have actually lost money on their purchases.

That’s according to a couple of Twitter polls conducted by blockchain monitoring software company DEXterlab, which found that slightly over 64% of respondents said they bought NFTs to make a profit. However, almost 59% (58.3%) stated they lost money on their NFT transaction. Only 41.7% made any money.

This DEXterlab Twitter poll saw 1,288 people voting, whereas the poll to ascertain the motivation behind people buying NFTs attracted 1,318 votes.

To become a part of a ‘community and flex’

The second most popular reason to buy an NFT at 14.7% was “community and flex”.     

DEXterlab said that “people are highly social creatures, so the desire to be a part of a community and show off (your social status, who you are friends with, how successful you are, etc) isn't really surprising.”

Additionally, the blockchain monitoring software company noted that “a strong community is one of the most significant advantages of NFT projects”.

Collecting digital art

Coming a close third at 12.4% was “collecting digital art”. DEXterlab says that thanks to NFTs, people can now own digital art, “which was never possible before”.

In last position at 8.6% were people wishing to access particular games and tools. NFTs often come with perks in the form of a game or membership rights that certain consumers find attractive.

How much are people willing to spend on NFTs?

Around a quarter of people (25.5%) said they were willing to spend over $2,000 (£1,637) on an NFT, with 48% happy to spend in the range from $50 to $500 (£41-£409).

Just over 15% said they would pay $500-$1,000 (£41-£818) and 11% said they would pay $1,000-$2,000 (£818-£1,638).    

Further reading

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