China has been ousting several prominent cryptocurrency firms from its region. Now the country seemed to be laying eyes on NFTs. Non-fungible tokens have undoubtedly taken the world by storm. Instead of jumping onto the bandwagon, the government was rather repelled by this idea. a media house, Securities Times of a Chinese Communist Party’s branch, People’s Daily revealed.
As the world has been steering towards digitalization, the touch of crypto to it was seemingly necessary. After digitalizing almost everything, taking art into the digital sphere worked out well for many. Despite being uninterested in crypto, an array of people were seen diving into the NFT space. Even though two prominent firms of the country were seen showing interest in NFTs, the Chinese government went on to castigate the value of NFTs.
NFTs next line to be banned in China?
While major firms like Alibaba Group Holding and Tencent Holdings were trying to take on the non-fungible tokens business, a Chinese state-run newspaper went on to label this a “huge bubble.”
The Securities Times in a recent article suggested that people using non-fungible assets were rather focused on it as format and weren’t that enthusiastic about the artwork or even the asset. Therefore, the Chinese media noted that there was a huge bubble in these transactions. A staff reporter and author Wang Junhui wrote,
“Once market enthusiasm wanes and the hype cools, the value of these many strange NFTs will greatly decrease.”
Collage creator, Mike Winkelmann who goes by the name Beeple further added,
“I absolutely think [NFT art is] a bubble, to be quite honest. I go back to the analogy of the beginning of the internet. There was a bubble. And the bubble burst. But it didn’t wipe out the internet. And so the technology itself is strong enough where I think it’s going to outlive that.”