Chinese state media renews warning against NFT ‘zero-sum game’, flagging ‘fraud’ risks as digital collectibles gain recognition
- The People’s Daily newspaper questioned whether NFTs were hype and fraud, given the skyrocketing prices of some digital collectibles
- Beijing has not explicitly banned NFTs, leaving the door open for listed companies to issue announcements that tie future business plans to the concept
The People’s Daily, mouthpiece of the ruling Chinese Communist Party, has spoken out against the investment fever around non-fungible tokens (NFTs), questioning whether it is another “zero-sum game hyped by cryptocurrency investors and capital”.
The latest state-media warning comes as NFTs and the metaverse have been gaining momentum, with a growing list of Chinese firms openly embracing them. Media firm 36kr Holdings gave away 1,124 metaverse-themed digital collectibles at a conference in Shenzhen on Wednesday, the latest sign of growing interest in digital assets despite the government’s previous bans on cryptocurrency trading and mining.
However, the Chinese government has not explicitly banned NFTs or the metaverse, leaving the door open for dozens of listed companies to issue announcements that tie future business plans to the concepts. The hype has created a “metaverse group” of stocks that have had huge bull runs lately, leading market regulators to issue warnings and raise questions.
It also noted that the popularity of NFTs was evident after Chinese tech giants like Tencent Holdings, Ant Group and ByteDance tested consumer desire for digital collectibles.
Unlike overseas markets where cryptocurrencies are accepted as payment for NFTs, Chinese issuers only take yuan, and once bought, the NFTs cannot be resold.
