NFT Platforms Are Increasing Due To Regulatory Uncertainty in China

NFT loan
Spread the love

Over the last few months, China’s NFT market has grown at an exponential rate, and it appears that this trend will continue!

Over the last six months, China’s NFT market has grown at an exponential rate. The number of NFT platforms in the country has topped 500 mark, a five-fold growth since February 2022 when there were only 100.

Since the government enacted the national ban on the specified date, other crypto crackdowns have occurred in China. Despite this, NFT networks continue to thrive.

The increase in membership has demonstrated the expansion. In comparison to the small number of members on the first crew, there are more people in the space now.

Entry Level NFTs

The NFT business has benefited from the involvement of Chinese tech giants such as Alibaba and Tencent.

Alibaba and Tencent have both decided to abandon Ethereum in favor of building their own semi-private blockchain networks. It’s a hybrid version of blockchain that isn’t completely decentralized and instead is administered by a small number of people.

The blockchain and the distributed ledger were combined to create this type of blockchain.

While the worldwide crypto and non-fungible token (NFT) markets have plummeted since May, “digital collectibles” – China’s so-called version of NFTs – have remained stable in recent weeks.

A handful of digital artifacts listed on the mainland NFT market saw a large increase in market value in May, according to China’s NFT price tracker platform NFTshipan.

Crypto Market continues to fall

The rise in Chinese interest in digital collectibles comes at a time when the global cryptocurrency market has lost hundreds of billions of dollars in market value, owing mostly to the ongoing collapse of many projects, from medium to major.

Popular NFT collections, such as the Bored Ape Yacht Club, are said to have also achieved the lowest floor price.

As a result of the pandemic, there has been a substantial shift in sectors in the last two years, with an emphasis on less affected areas such as technology.

In addition to AI, blockchain is one of the fastest-growing emerging technology trends.

The opportunity in the sector has been promptly taken by the Chinese people; the number of entities in China that have adopted blockchain and NFTs is among the greatest in the world.

In China, NFT is not currently prohibited. To evade inquiry by regulators opposed to NFT-related speculation, most NFT platforms are managed by significant internet corporations in China, such as Huanhe of China.

Both Tencent and Alibaba’s Jingtan have banned the sale of NFTs on secondary markets.

NFTs Review

In the blockchain world, NFT is a form of digital asset that is used to identify goods and occurrences. The NFT market has grown rapidly in the last two years. After a relatively unknown start, NFT has increased in popularity among people outside of the IT field.

Transferring physical assets to digital and electronic assets improves exchange in terms of the legal framework.

The problem is figuring out how to govern new types of economies. Of course, the Beijing administration is on track to keep up with the latest technological advancements.

The South China Morning Post reported earlier this year that NFT would be deployed on top of China’s state-backed blockchain infrastructure, the Blockchain Services Network (BSN).

The establishment of BSN was prompted by China’s severe prohibition on public chains. NFTs are exchanged and introduced on public blockchains or decentralized platforms.

Nonetheless, public chains violate the law because the Chinese government requires all internet services to authenticate their users’ identities and gives the regulator the ability to intervene in cases of illegal behavior.

In a public statement on Thursday, Liu Tianjian, blockchain copyright director of the National Press and Publication Administration, indicated that digital valuables in China will not be eligible for patent protection until a review is completed.

Chinese digital collectibles sold on secondary marketplaces, according to the director, may breach the financialization red line.

Leave a Reply

Your email address will not be published.