Recently, NFT platforms under Tencent and Alibaba communicated with relevant regulatory authorities. NFT related words have been deleted one after another and renamed “Digital Collection”.
NFT has not been subject to substantial supervision, which is a blessing for China. But will this NFT with Chinese characteristics succeed? This is unknown. But it is completely different from other NFT logic in the world.
The core reason for the formation of the NFT trend this year is still the logic of the encryption industry. Trading profit is still the core reason for the popularity of NFT. OpenSea’s total transaction volume has exceeded 10 billion U.S. dollars, and the daily transaction volume has stabilized at around 50 million U.S. dollars. Most of the participants are for profit, not collection.
Chinese-style “digital collections” require resolutely resist any form of malicious price speculation of digital cultural and creative works. Whether it can be opened for trading is not yet known, and it is difficult for auction houses to participate. Therefore, there is a difference in this essential driving attribute.
The second reason why NFT is recognized by the mainstream is based on the decentralized public chain that brings confirmation and circulation of digital art. The collection of digital art becomes possible. It is precisely because digital collections are easy to copy and infringe, the blockchain is more valuable. In order to ensure the confirmation of NFT’s ownership, most NFTs will choose the decentralized Ethereum public chain. Domestic digital collections are based on alliance chains under Tencent and Ali. Therefore, the confirmation of rights is essentially impossible to talk about, and it dispels its significance as a collection.
Participate in the creation logic
In the traditional NFT network, anyone can create and upload in OpenSea. Any user with a cryptocurrency wallet can directly participate in purchases and transactions. But for Chinese institutions, completely free and open creation, participation, and transactions are impossible. They must be audited, which also makes it difficult for them to be accepted by the international NFT community and ecology.
The success of NFT is accidental. The formation of native NFT IP such as CRYPTOPUNKS and bored ape yacht club. Then drive a large number of native other IP. For example, innovative projects such as Art Blocks and NFT DAO. In contrast, digital collections with Chinese characteristics currently do not have an independent native NFT IP and image. More are the vassals of celebrities, games and even corporate advertising.
In summary, the underlying logic of digital collections with Chinese characteristics is very different from that of traditional NFTs in the world. It is impossible to judge whether it will succeed in the future, but it must be a completely different route.