{"id":1331,"date":"2022-05-09T14:21:00","date_gmt":"2022-05-09T09:51:00","guid":{"rendered":"http:\/\/k1arts.com\/?p=1331"},"modified":"2022-05-09T12:59:55","modified_gmt":"2022-05-09T08:29:55","slug":"chinas-tech-giants-having-fomo-on-nfts","status":"publish","type":"post","link":"https:\/\/k1arts.com\/?p=1331","title":{"rendered":"China\u2019s Tech Giants Having FOMO on NFTs"},"content":{"rendered":"

In mid-April, a group of industry associations in China issued a warning against the potential financial risks of non-fungible tokens, digital assets that represent real-world objects or intangible goods like a song. NFTs must not be traded with cryptocurrencies, said the country\u2019s banking, internet finance and securities associations, and they must not be used to create securitized products, according to Rita Liao<\/a> at techcrunch<\/a>.<\/p>\n

Though the industry associations don\u2019t have regulatory power, they still exert an influence on and are taken seriously by policymakers. Many in the crypto industry see the pronouncement as a death knell for NFTs\u2019 development in China. Curiously, though, China\u2019s tech giants are showing a growing interest \u2014 or some would say, FOMO \u2014 in the space.<\/p>\n

Because crypto trading is banned in China, NFTs exist in a constrained way in the country. Rather than NFTs, tech companies call them \u201cdigital collectibles\u201d to distance their initiatives from the financial and speculative nature of many NFTs, stressing the use case\u2019s function in proving ownership and authenticity. As such, many of the objects being minted in China are artworks like an ancient Chinese Buddhist statue or an object conveying historic or cultural significance, like a famous Chinese spaceship.<\/p>\n

As the financial associations said in the statement, the value of NFTs lies in their potential to promote the growth of the creative and cultural industry.<\/p>\n

Unlike NFTs that are minted on Ethereum or other public chains and traded with crypto on open marketplaces, digital collectibles issued in China are minted on permissioned blockchains managed by local tech giants and often sold on these companies\u2019 own channels. Users would first have to verify their real identities on these platforms before buying the collectibles using China\u2019s fiat currency yuan and are prohibited from reselling the works on secondary markets.<\/p>\n

Regulations mean that digital collectibles in China are separate from the global NFT market and are extremely illiquid. Some of the platforms let owners give away their assets, but only for free and after a few months of the purchase.<\/p>\n","protected":false},"excerpt":{"rendered":"

In mid-April, a group of industry associations in China issued a warning against the potential financial risks of non-fungible tokens, … <\/i>Read More<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":1332,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[93],"tags":[96,104,98],"class_list":["post-1331","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-k1arts","tag-nftcollector","tag-nftgallery"],"_links":{"self":[{"href":"https:\/\/k1arts.com\/index.php?rest_route=\/wp\/v2\/posts\/1331","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/k1arts.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/k1arts.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/k1arts.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/k1arts.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1331"}],"version-history":[{"count":1,"href":"https:\/\/k1arts.com\/index.php?rest_route=\/wp\/v2\/posts\/1331\/revisions"}],"predecessor-version":[{"id":1333,"href":"https:\/\/k1arts.com\/index.php?rest_route=\/wp\/v2\/posts\/1331\/revisions\/1333"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/k1arts.com\/index.php?rest_route=\/wp\/v2\/media\/1332"}],"wp:attachment":[{"href":"https:\/\/k1arts.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1331"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/k1arts.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1331"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/k1arts.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1331"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}