Copyright infringement

China’s tech giants are having FOMO on NFTs –

In mid-April, a group of Chinese industrial associations issued a warning against the possible financial risks of unmarked labels, digital assets representing real objects or intangible products such as songs. NFTs should not be traded for cryptocurrencies, say national banks, online finance, and security organizations, and should not be used to create cryptocurrencies.

Although industrial associations do not have legal authority, they do have an influence and are taken seriously by policymakers. Many in the crypto industry see the announcement as a death knell for the development of NFTs in China. Surprisingly, though, Chinese technology companies are showing increasing interest – or some might say, FOMO – in space.

Since Crypto trading is banned in China, NFTs are limited in the country. Instead of NFTs, technology companies call it the “Digital Collection” to move away from their innovative financial and speculative nature of multiple NFTs, emphasizing the work of technology in proof of ownership and authenticity. As such, many of the objects produced in China are works of art such as an ancient Buddhist statue or an object conveying historical or cultural significance, such as a famous Chinese ship.

As financial institutions said in the statement, the value of NFTs lies in their ability to promote the growth of the creative and cultural industry.

Unlike NFTs installed on Ethereum or other public chains traded for crypto in open markets, digital collections produced in China are placed under approved restrictions and run by local technology companies that are often sold. the channels of these companies. Users must first verify their authenticity in these sites before purchasing the collected goods using Chinese fiat yuan and are prohibited from reselling in high markets.

The rules mean that digital collections in China are different from the global NFT market and are illegal. Some devices allow owners to pay for their property, but only for free and after a few months of sale.

Still, Chinese technology companies are in a hurry to release digital collections and some have even crossed the border to sell NFTs abroad. Below we have summarized some of the biggest players in the position to date:

  • Whaletalk (探 探) is a digital flag collection service created by Ant Group, Alibaba’s fintech network, mid-2021. The artists have posted AntChaindistributed book that requires permission to join (also known as affiliate chain) and is jointly managed by Ant and its partner agencies.

Pictures of the Whaletalk app

  • In April, the food delivery service Alibaba Ele.me added a digital collection service to its app, which is an all-around platform for Chinese users to order on-demand services, and now, as well as buy digital collection on the topic of food. in.
  • Last August, Tencent launched Magic Core (幻 核) on Zhixin chainA shared chain formed by Tencent and its partners. The most common case of using Zhixin Chain was to change physical stamps, or company stamps to authenticate documents, using blockchain.
  • JD.com, the world’s largest online retailer, has launched its Lingxi (稀 稀) operating system. Zhizhen chainA shared chain of action, in December.
  • Baidu, the country’s top search engine and independent driving force, released its Xuperchain Air Day collection in April.

Going abroad

Some Chinese technology companies have taken their NFT ambitions abroad – or at least are showing strong interest.

  • This week, Bilibili, a popular video-maker site in China, said it was releasing a collection of 10,000 unique images through its third partner. CryptoNattya recently added company in Singapore. The company has “licensed” its intellectual property in CryptoNatty, which will make it into Ethereum image avatars. It is unclear how the two sides share revenue or who their targets are, given the vast majority of Bilibili users in China. We contacted Bilibili for more details.
  • This week, Huawei tweeted about monkey-caked collection, sending NFT floor prices rising. The much-said twitter word does not refer to the connection the Chinese behemoth has with the Cake Monkeys.
  • TikTok, the largest company owned by ByteDance, has distributed its first NFT collection to Ethereum in October Includes Detroit artist Curtis Roach. The company’s efforts have been described as “unattainable” as such reportedly did not keep her promises to work with famous artists such as Lil Nas X and Grimes.
  • Cai Wensheng, founder of the Chinese app Selfie Meitu, is probably the largest crypto bull in the Chinese technology industry. Not only was he a former investor in bitcoins, but he also made the decision for Meitu to own up to $ 100 million in cryptocurrency. Meitu bought its first installment of bitcoins and ethers for a total of $ 40 million in March 2021.