Paper Number
ICIS2025-2479
Paper Type
Short
Abstract
Text-to-image technology, a disruptive generative AI tool to convert natural language prompts into visual artworks, has altered the digital content creation mode in NFT marketplaces. Although it simplifies the NFT creation, text-to-image technology also increases the market uncertainty. To investigate how such AI-induced market uncertainty motivates the existing users to change their minting strategies, thereby influencing their sales performance, we employ a PSM-DID model, leveraging the market uncertainty caused by the public release of text-to-image tools in July 2022. We find that the AI-induced market uncertainty reduces the existing users’ minting tendency but improves the sales performance of their NFTs. Additionally, more experienced users are greater motivated to strategically adjust their minting strategies. These findings highlight that existing users employ focus strategies when facing AI-induced market uncertainty. Our study contributes to the literature on the NFT market and generative AI, and offers practical implications for platform managers and investors.
Recommended Citation
Xu, Yu; Fang, Mengyuan; Gao, Chaoyue; Leung, Alvin; and Ye, Qiang, "The Impact of AI-Induced Market Uncertainty on the Users’ Minting Strategies in NFT Marketplace" (2025). ICIS 2025 Proceedings. 9.
https://aisel.aisnet.org/icis2025/blockchain/blockchain/9
The Impact of AI-Induced Market Uncertainty on the Users’ Minting Strategies in NFT Marketplace
Text-to-image technology, a disruptive generative AI tool to convert natural language prompts into visual artworks, has altered the digital content creation mode in NFT marketplaces. Although it simplifies the NFT creation, text-to-image technology also increases the market uncertainty. To investigate how such AI-induced market uncertainty motivates the existing users to change their minting strategies, thereby influencing their sales performance, we employ a PSM-DID model, leveraging the market uncertainty caused by the public release of text-to-image tools in July 2022. We find that the AI-induced market uncertainty reduces the existing users’ minting tendency but improves the sales performance of their NFTs. Additionally, more experienced users are greater motivated to strategically adjust their minting strategies. These findings highlight that existing users employ focus strategies when facing AI-induced market uncertainty. Our study contributes to the literature on the NFT market and generative AI, and offers practical implications for platform managers and investors.
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