NFT Marketplace - People are Daily Online, NFT, leading to the meta-universe, or the big scam?

NFT Marketplace - People are Daily Online, NFT, leading to the meta-universe, or the big scam?

NFT Marketplace- Is the place where NFTS are created & traded & are hoisted on the Ethereum network. NFTS are Non Fungible Tokens minted & signed making them unique. The NFT Marketplace is being recognised by companies like Meta-Universe & more.

 

Industry insiders believe that at present, the legal nature, transaction methods, supervision subjects, and supervision methods of NFT have not yet been clarified in China, and there is hype.

When NFT encounters artwork, a picture, a song, a video, and even an avatar can "spark sparks" with a string of codes, and the value of it will explode exponentially, breaking through the real-world cognition.

 

The full name of NFT is Non-Fungible Tokens, that is, "non-fungible tokens".

 

"From a technical point of view, NFT Art is a digital certificate based on a contract based on blockchain technology." Li Ming, director of the Blockchain Research Office of the China Electronics Standardization Institute, told reporters that NFT Art is verifiable, unique, indivisible, and reliable. Features such as traceability can be used to mark the ownership of specific assets.

Since the beginning of this year, celebrities, big Vs, and companies have created and launched their NFT Crypto Art products, and digital art has become one of the fastest application scenarios for NFT.

 

When "Everything can be NFT", this string of "mysterious codes" connecting virtual and reality will become the key to the meta-universe world, or will it be another zero-sum game under the hype of the currency circle and capital? Many issues need to be considered in advance.

 

NFTS became popular "out of the circle"

In March this year, at Christie’s auction house, NFT digital art "Every Day: First 5000 Days" sold for 69.34 million U.S. dollars (about 450 million yuan), which refreshed the record of digital art transactions and also made the word NFT a powerful breakthrough.

 

Into the public's field of vision

 

The NFT digital artwork "Every Day: The First 5000 Days" is created by the creator Beeple who published his painting photos on the Internet every day since May 1, 2007, and then combined them with NFT encryption technology after 5,000 pictures were collected. . Picture source Christie's official micro screenshot

 

On Opnesea, the NFT Art trading platform, seemingly ordinary mosaic avatars, pictures, and collectibles are frequently sold at "sky prices." Data shows that Opensea has accumulated sales of more than 10 billion U.S. dollars so far, and the average price of each NFT is 872 U.S. dollars.

 

International luxury goods giant LV has also launched an NFT game, where players have the opportunity to get free NFT Crypto Art gold postcards worth between 20,000 and 20 million US dollars in the game.

 

In China, NFT Art attracts technology giants and capital to run into the market. Alipay launched the NFT art collection applet "AntChain Fandian", Tencent launched the NFT trading platform "Phantom Core" APP, and TikTok, a subsidiary of Bytedance, also announced the launch of the NFT Marketplace series.

 

"Just like the importance of asset certificates in a physical society, the metaverse ecology also has a large number of digital assets, and asset certificates are needed to promote the economic cycle of the metaverse." In Li Ming's view, digital asset certificates are the key elements of the metaverse ecology, And NFTS can become a manifestation of digital asset certificates in Metaverse, and it will gradually evolve with the development of Metaverse.

 

The concept of Meta Universe continues to be hyped, allowing the market to see the business opportunities of NFT Art. In the opinion of some people in the industry, Metaverse provides more diversified application scenarios for NFT Crypto Art, and NFT will become an important tool for realizing digital assets and circulation transactions of virtual items.

 

NFT Marketplace - Opposing voices believe that the sudden popularity of NFT and Metaverse is probably behind some elaborate hype by the media and the currency circle. According to media reports, the bidder who won the “sky price” NFT paintings at Christie's before was the founder of a certain NFT Art fund.

 

“NFT Crypto Art itself has certain financial attributes, especially the emergence of foreign sky-priced' NFT Marketplace, which allows more speculators to find new financial speculation tools and accelerate the formation of the bubble.” Li Ming said.

 

At the same time, because of the domestic regulatory attitude towards virtual currencies, some institutions and companies are also trying to downplay the "token" attributes of NFTS, preferring to call them "tokens." In June of this year, when Alipay launched the NFT payment code skin, it was emphasized that NFT Coins is an effective and reliable technical means to solve the right confirmation of digital artwork, which is fundamentally different from virtual currencies such as Bitcoin.

 

At present, the NFT Art-related product platforms of major manufacturers such as Tencent and Alibaba have deleted the word NFT and replaced it with titles such as "digital collection".

 

Alienating NFT Crypto Art

"At least four digits", "I will come out after the speculation is high", and “There is no way to supervise private transactions"... In an Antchain NFT Art torch digital collection group, the reporter found that the original price of 39 yuan digital torch has already been fired after a crazy price increase to a few thousand yuan or even tens of thousands of yuan.

 

On September 16, Alipay issued a limited edition of 21,000 Asian Games digital torches, which were sold out in less than 4 minutes on the NFT Marketplace. Although AntChain stated on September 24, it firmly opposes all forms of digital collection hype and resists rights and interests transactions, standardized contract transactions, and other illegal activities. But on the Internet, transactions and discussions about the digital torch have never stopped.

 

Under the carnival, NFT Art is deviating from value and toward alienation.

 

Artwork, games, hype, currency circle, meta-universe... For ordinary people, it is difficult to distinguish which is the true label of NFT.

 

"If you want to play for a long time, you can't just want to cut the leeks and run away in the short term, destroying the entire market." Liu Yong, an investor who has been paying attention to NFTs and virtual currencies for a long time, believes that the current market is more speculative for NFTs. There are not many people who pay attention to its true value.

 

"Some mainstream currency exchanges are also issuing new coins under the concept of NFT Crypto Art, which is very common." Liu Yong said frankly to reporters that sometimes it is difficult to judge whether this is an investment or a scam. As far as I am concerned, whether it is speculation in currency or NFT, it is speculation. Follow the market trend and make quick money.

 

"One USDT=1 U.S. dollar, you can directly use RMB to USDT to trade on the platform. The mainstream NFT Marketplaces are common and very convenient." During the conversation, Liu Yong turned on his mobile phone and showed reporters how to buy NFT coins on the exchange.

 

"These apps on my mobile phone can no longer be downloaded in domestic app stores, and need to go to foreign app markets. Or download from unofficial markets, but it is not safe." In his view, the real value of NFT lies in the realization of virtual items the capitalization of the country should stay away from the currency circle.

 

At risk, young people who don't want to take the air are waiting for opportunities.

 

Reporters found that young people are more likely to accept and participate in NFT Crypto transactions, and they hope to capture a new round of wealth creation opportunities.

 

"There are a lot of risks." In Liu Yong's view, the risk of investing in NFTs is even greater than speculating in coins. "NFT items contain poor liquidity, so someone has to take orders."

 

Among the several NFT Marketplace groups that reporters joined, the post-90s and post-00s accounted for more than half, and they were also the most active group. In these groups, from time to time, people will post advertisements such as "Raffle Airdrop", "Free NFT Art Assets", and "NFT Investment". These links and QR codes usually induce users to download App or register on the platform.

 

 

"Some NFT games and trading platforms, to attract users, publicity, etc., the platform will issue ‘airdrops' to users' wallets from time to time." NFT player Li Xu told reporters that such "airdrops" can be regarded as rewards or dividends. , One is to reward users and users of internal testing, and the other is to attract popularity when the project goes online. "This is very common in the currency circle." Li Xu said.

 

On a domestic NFT website, the reporter found that some photos, animation designs, digital cultural creations, etc. are priced from tens, hundreds, or even tens of millions of yuan, and users can click to buy them directly. At the same time, users can also upload pictures to cast their own NFT Art works, and buy more "fuel", the higher the level of works that can be cast.

 

The product page and collector list of a certain NFT art trading platform. Cartography Shen Jiaping

 

The official website information shows that this NFT Digital Asset trading platform was founded in May of this year. At present, more than 5,000 creators at home and abroad have settled in, with more than 100,000 registered users.

 

"Everyone can upload and cast NFT Art, but not every NFT has value." In Li Xu's view, the platform should allow collectors to interact and socialize with NFT Crypto Art creators to form value growth, not just behind the price Add a zero, looking forward to the next family to take over.

 

However, in a frenzied market, the "sound of reason" is often submerged in the "fantasy of wealth creation."

 

Be wary of the "drumming and spreading flowers" scam

The reporter's investigation found that at present, some domestic NFT Art trading platforms claim to attract investors such as "licensed operation", "compliance transactions", and "RMB settlement".

 

"This kind of compliant license approval is extremely difficult to obtain." Xiao Sa, director of the Bank of China Law Research Institute, told reporters, according to the "Decision of the State Council on Cleaning up and Reorganizing Various Trading Places and Effectively Preventing Financial Risks" and the "General Office of the State Council" The “Implementation Opinions Regarding the Cleanup and Rectification of Various Trading Places” stipulates that if you want to open NFT Marketplace on a formal exchange, you must obtain the approval of the provincial people's government for the establishment, or you need to obtain the approval of the State Council or the financial management department of the State Council.

 

In Xiao SA’s view, domestic NFT asset trading venues often do not have such approvals, so their legal circulation will be restricted. "Going by a combination of potential problems of NFT ART, we can't comply with the opening of the NFT Crypto Art supply market now."

 

It is worth noting that the current hype about the concept of NFTS and meta-universe has spread to listed companies and the secondary market. Some behaviour such as rubbing hot spots and speculating concepts are also arousing the vigilance of the regulatory authorities. A few days ago, the Management Department of the Shenzhen Stock Exchange’s Growth Enterprise Market issued a letter of concern to Chinese Online, requesting an explanation of the relevance of the interactive reading business to the concept of Metaverse and the concept of NFTS. In addition, several listed companies have successively received letters of concern from the exchange, requesting clarification on whether the company and related parties are engaged in hot spots, market manipulation, and illegal trading of company stocks.

 

NFTMarketplace: Industry insiders believe that the domestic legal nature, transaction methods, supervision subjects, and supervision methods of NFTs are not yet clear. NFTs have risks such as speculation, money laundering, and financial productisation. They should be cautious about NFT investments and be wary of "drumming and spreading".

 

Financial scam

 

"Even it is supplied in cryptocurrency, or mixed with borrowing, price prediction machines mining and other solutions to increase secondary liquidity; there is a risk of violating China's current regulatory regulations." Wang Dawei, a lawyer at Beijing Tianyuan Law Firm, told reporters. The NFT Crypto Art investment market has the following risk points: the compliance risk of the NFT trading platform itself; whether the NFT Art issuer constitutes the compliance risk of ICO (i.e. currency issuance), whether the risk of copyright infringement; whether there is liquidity when the purchaser of the NFT re-sells Sexual risk.

 

"Whether NFT Art transactions are legal and compliant needs to be judged according to specific circumstances. For example, if direct transactions between two natural persons are denominated in RMB and there are no other violations, the current laws and regulations are not prohibited. But if a platform is set up to match transactions, then the risk of platform compliance is relatively large. “Wang Dawei said.

 

"It should focus on the supervision of NFT Art product pricing, sales (auction), marketing model, second-hand monopoly (re-sale), etc." Xiao SA reminded me that different from overseas NFT Crypto Art trading platforms, there is no NFT two in China at this stage. For situations similar to small transactions, exchanges, plus gifts, NFTS has not yet experienced a financial fad. However, the strong domestic supervision of financial behaviour will not change. Based on the current risks of NFTs, we should focus on enhancing the awareness of legal compliance in investment NFT Marketplace behaviours, and strengthen the supervision and prevention of potential risks in the industry.