When transactional NFTs crash: consumer responses to brand crises caused by NFT price drops

Purpose This study aims to investigate how consumers respond to the brand crises caused by transactional Non-Fungible Token (NFT) price drops. Despite the emergence of NFTs as an innovative tool for brand marketing, numerous NFT projects fail to achieve their intended results, with some even experiencing a collapse in the secondary market, which can lead to brand crises. Although NFT price drops are inevitable, the academic understanding of how consumers respond to brand crises driven by NFT price drops remains limited. Design/methodology/approach Three preregistered experimental studies were conducted. Study 1 (n = 139) investigated the main effect of NFT price drops on brand attitude. Study 2 (n = 192) examined the mediating role of consumers' tolerance and brand responsibility. Study 3 (n = 338) further examined the moderating role of value cues. Findings The study reveals that when a brand crisis is caused by NFT (vs physical collectible) price drops, consumers show a more negative attitude. And in this process, consumers' lower tolerance for NFT price drops strengthens their perceptions of the brand's responsibility for the crisis. Moreover, when value cues for NFTs are enhanced, consumers' tolerance for price drops increases, which strengthens confidence in the serial mediation model. Originality/value This research contributes to crisis literature by addressing an overlooked source of brand harm: NFT crashes. It also extends NFT research by developing a theoretical framework that explains consumer psychological mechanisms amid digital asset crises. The findings further provide practical implications for brands operating in NFT markets and managing crisis recovery.