The Non Fungible Token (NFT) fever has also arrived in China and shows no signs of stopping. From the popularity of digital art to the world of luxury, there are several sectors that are experimenting with this technology. And the Chinese public, is hungry for exclusive tokens.
NFTs are viewed more as a derivative of blockchain technology rather than a tradable asset in China. Tech majors, like Alibaba, Tencent, and JD, have built their own platforms where users can buy and collect NFTs, but are prohibited from trading or reselling their purchases. Most Chinese tech giants don’t even use the term NFT, hoping to stay on regulators’ good side and avoid association with the global crypto market. Instead, they use the term “digital collectible.”
The fascination for NFTs persists and blockchain technology remains fundamental for the realization of the Chinese digital economy. The solution? Create an NFT industry “with Chinese characteristics”, founded on a local hybrid blockchain network, autonomous and protected from the risk of fraud and the financial fragility typical of cryptocurrencies.
The most significant difference between NFT projects in China and the international market lies in this concept of decentralization, where decision-making power is taken from one centralized entity and given to member-owned communities, known as Decentralized Autonomous Organizations (DAOs). While there’s continued debate about the actual degree of decentralization of projects within the international community, with many projects working towards full decentralization, China’s NFT market strictly follows the country’s laws and regulations, and its projects are overwhelmingly centralized.
Digital collectibles, Chinese NFT
Unique, personal, authentic. NFTs survive in a China without cryptocurrencies, where they are establishing themselves under the name of digital collectibles. A nomenclature that underlines the decoupling from cryptocurrencies, without giving up the charm of NFT. A charm that has not gone unnoticed for its versatility and ability to offer an exclusive digital product protected in its originality. On the occasion of the Chinese New Year 2022, for example, Alipay has created a series of 3D collectibles of historical artifacts linked to the year of the tiger. JD has instead put up for sale a rendering of his mascot Joy. And Tencent began experimenting with selling digital real estate for its future metaverse. Also famous is the case of the Bored Wukong art collection, a Chinese-hued reinterpretation of the digital artwork Bored Apes that has depopulated among the young people of the People’s Republic.
NFT and luxury in China, allies against counterfeiting
The creation of digital tokens is a great ally for companies in the fight against counterfeiting. The unique nature of the NFT is in fact an element that personalizes the shopping experience for the consumer, while helping the brand to protect its brand by recognizing the originality of the products. Fashion, automobile, food and wine, but also digital art and music.
In addition, the NFT community believes that NFTs play an important role in building the metaverse, an immersive 3D virtual space. Some collectors are betting on the Chinese NFT market to go through a profitable phase in a controlled, centralized way, as they watch prices of virtual land, virtual events, and virtual clothes rise rapidly on global NFT markets.
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