Chinese Communist Party warns of NFT hype bubble
According to native sources, the Chinese authorities has launched a collection of statements denouncing the worth of the nonfungible token, or NFT, market, although two of the nation’s main tech corporations are pursuing the expertise.
The story was first launched regionally by the Securities Times — a information publication service performing as a spokesperson for the official Chinese Communist Party outlet People’s Daily — and reported by the South Morning China Post.
The remarks claimed that “it is common sense that there is a huge bubble in NFT transactions,” and that the majority NFT consumers who purchase with a monetary motive focus solely on the worth of the belongings quite than appreciating the visible qualities of the piece.
Staff reporter for the SMCP, Wang Junhui writes:
“Once market enthusiasm wanes and the hype cools, the value of these many strange NFTs will greatly decrease.”
This echoed the rhetoric of a June publication from People’s Daily during which they said that the NFT market “can be hyped up, leading to chaos, while decentralization may lead to security concerns.”
Earlier this 12 months, the Chinese authorities delivered a crushing blow to crypto mining operations in a deliberate attempt to oust unfavored activity from its borders.
The country’s major tech players Tencent Holdings and Alibaba Group Holding have progressed with NFT-focused research and development initiatives, however, and now actively participate in the space.
Last month, Tencent launched its NFT trading platform Huanhe with a view of integrating NFT assets onto its music streaming platform, QQ Music.
Likewise, Alibaba’s fintech partner, Ant Group, recently listed two NFT images for sale within its wallet application Alipay.
Despite this, Chinese NFT advocates still remain restricted in their trading activities. For example, only the nation’s official currency Renminbi can be used for transactions. In addition, NFT’s cannot be resold once purchased as this would constitute a breach of the nation’s financial laws.