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Nerd For Tech

How NFTs can happen in China without Crypto?

According to an NFT expert, The NFT mania has reached China, although there is little evidence of crypto in it.

With help of expert NFT developer, Tencent, the Chinese social media and gaming giant, has developed an NFT purchase and collection app, Alibaba, the eCommerce platform, has sold 50 NFT mooncakes in a stunt to promote a metaverse product, and a half-dozen startups are vying for the top spot in China’s localized non-fungible token trading market.

There hasn’t been anything quite like the $69 million NFT artwork purchases, such as Beeple’s “Everydays.” However, a slew of significant Chinese firms has jumped on the NFT bandwagon, including Big Tech, blockchain startups, art auction houses, and retail brands.

Many of the reasons they are dabbling with NFT works are similar to those of their Western counterparts: the blockchain-enabled protection of IP rights, enthusiasm over a new form of trading and curating artwork, and the free publicity they receive for being linked with a fashionable concept.

NFTs, on the other hand, aren’t about making quick money in China. Instead, Chinese NFT participants are attempting to avoid cryptocurrencies, even though NFTs are inherently linked to cryptocurrencies. On a linguistic level, corporations omitted the word “token” while translating “non-fungible token” into Chinese, and on a technological level, some organizations abandoned the global Ethereum blockchain infrastructure entirely.

The localization of the NFT frenzy is another example of how Chinese blockchain devotees aim to separate blockchain applications from cryptocurrencies to safeguard the former from regulatory notice since China has doubled down on outlawing all crypto transactions this year.

Ethereum should be avoided at all costs.

NFTs and crypto are virtually inextricably linked in the West. The Ethereum blockchain is used to create the bulk of NFT artworks, including some of the most well-known, such as CryptoPunks and Bored Apes. To make any NFT transactions, sellers and buyers must have Ethereum wallets and ETH, the world’s second-largest cryptocurrency.

The issue is that mining, trading, and exchanging cryptocurrency for fiat money are all prohibited in China.

The less financial you are, the safer you are.

Whatever workarounds these Chinese NFT markets employ, the end consequence is that the majority of NFT transactions in China are decoupled from cryptocurrencies. Artworks are priced in RMB, and purchases are completed using traditional non-crypto means such as bank cards, Alipay, and WeChat Pay.

Wrapping up

Despite this, the market is a hive of activity. The fact that NFTs aren’t truly linked to cryptocurrency in China hasn’t concerned Chinese popular brands, events, or musicians. The 2022 Asian Games, which will be held in Hangzhou, China, have distributed 20,000 NFT torches through Alipay, Alibaba’s payment service. Mainstream artists with ties to their home states are auctioning off their work as NFTs. Some of the most significant transactions, such as the $2.5 million sales of internationally recognized artist Cai Guo-debut Qiang’s NFT piece, took place in Hong Kong, where crypto transactions are still permitted. However, amid the hoopla, this distinction is sometimes overlooked.

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Smita Verma

Blockchain enthusiast and cover everything that goes on in the crypto ecosystem. I love researching and producing technical content on blockchain.