Why users trust or reject cryptocurrencies and NFTs in the metaverse

A new academic study published in the peer-reviewed journal AI (MDPI) decodes what drives people to trust, adopt, or reject cryptocurrencies, non-fungible tokens (NFTs), and AI-powered virtual influencers inside metaverses.

Conducted by Seunga Venus Jin from the Artificial Intelligence and Media Lab at Northwestern University in Qatar, the research, titled "In Metaverse Cryptocurrencies We (Dis)Trust? Mediators and Moderators of Blockchain-Enabled Non-Fungible Token (NFT) Adoption in AI-Powered Metaverses", examines the psychological and technological factors shaping user behavior in virtual economies and identifies how trust, skepticism, and ownership perceptions interact in the rapidly expanding digital ecosystem.

Why users trust or distrust cryptocurrency in the metaverse

The study primarily focuses on how users perceive and decide to use cryptocurrencies within metaverses. Based on responses from 386 participants, the analysis reveals that blockchain transparency plays a central role in establishing trust, a key determinant of users' willingness to use crypto in virtual spaces. When individuals perceive blockchain systems as transparent and secure, they are more likely to place trust in them, which directly increases their intention to transact within the metaverse economy.

The study identifies trust as the mediating link between perceived transparency and behavioral intention. In other words, transparency alone does not automatically convert users; rather, it operates through the establishment of trust. However, the research also shows that this connection is strongly influenced by users' technopian mindset, a belief system characterized by optimism about technological progress. Those with more positive views of digital innovation respond more favorably to blockchain transparency and are thus more inclined toward crypto adoption.

Jin's findings indicate that the future of metaverse-based financial ecosystems depends not only on technical robustness but also on users' confidence in the ethical and transparent operation of blockchain infrastructures. For developers and platforms, enhancing visibility, traceability, and fairness in blockchain mechanisms may be key to gaining public acceptance.

How awareness shapes engagement with AI-powered virtual influencers

In exploring the social layer of the metaverse, the study turns to the relationship between AI-algorithm awareness and engagement with AI-generated virtual influencers. Using the same dataset, Jin discovers that being aware of how AI algorithms operate does not uniformly encourage engagement, it can produce opposite reactions depending on users' psychological traits.

A notable mediator here is Neo-Luddism, the skepticism or resistance toward technology. Participants with higher algorithmic awareness often develop stronger Neo-Luddite attitudes, which, in turn, reduce their intention to interact with AI-powered personas. This suggests that greater technical understanding can sometimes amplify caution or distrust rather than comfort.

However, the study identifies a significant moderating factor: social phobia. Individuals with higher levels of social anxiety show the opposite trend, they are more inclined to engage with virtual influencers when they understand the technology behind them. For these users, AI-driven avatars provide a low-risk, socially safe environment where interaction feels less intimidating.

The findings reveal a nuanced dynamic: while technological literacy can trigger skepticism in some, it can also foster engagement in others, depending on underlying social and emotional factors. For metaverse marketers and content creators, this highlights the importance of tailoring engagement strategies, offering transparent explanations of AI for anxious users while addressing ethical and privacy concerns for the tech-aware skeptics.

NFTs, ownership, and the investment mindset

The second phase of the research, involving 328 participants, delves into NFT adoption within blockchain-enabled metaverses. It examines how understanding the nature of NFTs, their uniqueness, authenticity, and non-fungibility, translates into users' intentions to own or invest in them.

The study finds that knowledge about NFTs leads users to develop two distinct but related forms of ownership: general ownership perception, the belief that NFTs represent verifiable possession, and psychological ownership, the personal feeling that something digital "belongs" to the user. Crucially, only psychological ownership strongly predicts the intention to use or purchase NFTs. The transition from understanding to intention operates through a serial mediation path: recognizing the distinct nature of NFTs builds general ownership perception, which then nurtures psychological ownership, ultimately driving adoption.

The research also brings out the moderating effect of perceived investment value. Users who see NFTs as financially valuable show a much stronger relationship between NFT understanding and intention to use them. This indicates that economic potential remains a decisive motivator, beyond novelty or artistic appeal, investment prospects anchor users' willingness to participate in NFT markets.

These findings suggest that NFT adoption in the metaverse is not just about digital identity or creative expression but also about cultivating a sense of ownership that feels both emotional and economically rewarding. Platforms and developers can leverage this insight by highlighting authenticity, transparency, and potential value growth while designing NFT marketplaces and experiences.