Against the backdrop of China's stricter crackdown on virtual currency trading speculation, many speculators in capital and currency circle are aiming at a new direction -- non-homogeneous token (NFT).
NFT stands for non-fungible Token, also known as non-homogeneous Token. As an innovative application of blockchain technology, NFT is used as a certificate to mark specific digital assets, showing certain potential value in enriching the digital economy model and promoting the development of cultural and creative industries. Among them, the field of digital collections is one of the fastest application scenarios of NFT.
Don't let "NFT" become the new hype darling
In recent years, seemingly ordinary Mosaic heads, pictures, videos and other digital collections NFT frequently sold "sky-high prices". Opensea, the world's largest foreign NFT trading platform, has accumulated sales of more than 10 billion DOLLARS, and it is not uncommon for a single digital collection to be sold for millions of dollars.
However, behind the frequency and popularity of "sky-high price", NFT tends to be financialized and securitized, with a large number of "counterstrike" and "rat position" behaviors hidden, and illegal and criminal acts such as speculation trading, money laundering and fraud begin to emerge.
In foreign countries, digital collectibles NFT often use virtual currency transactions, circulation is unlimited. Some speculators will use the NFT products to promote profit, through the "sky-high" auction or with "insider" multi knock, speculation high prices. Some NFT trading platforms use social media to induce users to continue trading in order to earn high commission fees.
Recently, there are foreign buyers trying to buy millions of dollars of digital collection NFT auction again, but there is no one, the price of nearly ten thousand times the phenomenon, eventually became "take over the xia".
At present, the domestic NFT ecosystem of large and small platforms for their own, crazy "pioneering", some Internet head enterprises are also involved. These domestic NFT trading platforms basically use RMB for trading, and many platforms do not restrict the secondary circulation of NFT.
The risks are not to be underestimated. Some digital collections are split and traded, breaking the non-homogeneity of NFT, which may lead to the evolution of nFT-related businesses into illegal financial activities such as illegal fund-raising and issuance of securities.
At the same time, domestic NFT issuers and trading platforms are not required to carry out real-name authentication for issuing, selling and purchasing subjects, which raises potential problems of money laundering in the NFT field.
How to guide the healthy development of NFT in China, "take its essence and discard its dross" should be the right way. It is necessary to strengthen supervision in this field and enhance the ability of early warning, prevention, resolution and disposal of related risks.
Recently, the Internet Finance Association of China, the China Banking Association and the Securities Industry Association of China issued an initiative, calling on member units to resolutely curb the tendency of NFT financialization and securitization, and strictly prevent the risk of illegal financial activities. In order to cut off the secondary transaction link of NFT, the three associations require member units to participate in NFT projects from the aspects of issuing financial products, providing transaction services, public issuance and financing, pricing and settlement, real-name authentication, investment and financing, etc.
Although China has clear regulations on risk prevention of virtual currency, there are still insufficient regulatory rules for virtual assets such as digital collections and derivatives. Relevant departments urgently need to increase the exploration and research on NFT supervision, and issue relevant laws and regulations as soon as possible to avoid illegal activities such as malicious speculation of NFT products and fundraising fraud by borrowing NFT concepts.
On the one hand, relevant departments in the field of culture and intellectual property rights should formulate relevant laws and policies to clarify the business norms of NFT as a digital collection. On the other hand, it is necessary for financial supervision departments to strengthen risk monitoring and warning to prevent the risk of illegal financial activities.
Especially for some risk signs, the regulatory authorities to act decisively, clear position, timely risk tips to the public. As a new technology, blockchain has a self-evident impact on the future economic and social development. All parties in the ecological chain must not only focus on short-term "sky-high" benefits but also ignore long-term healthy development. We should be careful not to turn the "blue ocean" into the "Dead Sea" by turning innovation business from reality to hype.