In recent years, China's NFT (non-homogeneous token) market continues to heat up. As an innovative application of blockchain technology, NFT has shown certain potential value in enriching the digital economy model and promoting the development of cultural and creative industries. However, it also has hidden dangers such as speculation, money laundering and illegal financial activities, and its risks have gradually been concerned and valued by the society.
, the Beijing daily reported on April 13, China's Internet financial association, the China banking association, the China securities industry association released on the initiative of NFT related to prevent financial risk, calling for the general consumers to set up the correct consumption concept, strengthen the ego to protect consciousness, consciously resist the NFT speculation behavior, alert and away from the NFT related illegal financial activities, We will effectively safeguard the security of our own property.
Earlier this month, the theft of NFT also drew public attention because it happened to a celebrity. On April 1, famous singer Jay Chou posted on social media that his boring Ape NFT, BAYC #3738, had been stolen. According to blockchain security agency Paidun on social media, in addition to one "boring ape", jay Chou's other two items "MAYC" and "Doodles" were also stolen, a total of three, so far, Jay Chou has lost a total of four valuable NFT. According to data tracking on the blockchain chain, these four NFTS have been sold by the attacker, making a profit of about $540,000.
Although NFT appeared for a short time, it set off a wave of investment buying. Hackers stole NFT through phishing links and attacks, and obtained $540,000. On the one hand, the rapid resale, can obtain such a high price difference, NFT appreciation speed has killed many real art collections, on the other hand, the theft of four NFT in a short period of time, can not help raising doubts, its "algorithm system" and "value" match.
There are legal gaps in digital collections
As a kind of virtual currency, its essence is no different from bitcoin such as Catecoin and Dogecoin. Both realize value price calculation through logical algorithm. The emergence of NFT is actually the enrichment and innovation of the existence form of Bitcoin on the network. At present, all NFT platforms in China exist in the form of digital collections, which aims to highlight their "value" through "uniqueness".
The NFT is used to digital assets equaling, such as digital art, and major domestic NFT is combined with digital collection, mainly using the distribution of NFT scarcity, which fits the characteristics of collection, such as limited release, the ownership is clear, but to some extent does not emphasize the collection art value, nor stimulate users to participate in content creation, Therefore, the digital collection under NFT is only a transitional model, not the long-term development direction of NFT in the future.
From an economic point of view, the price of a good, or the price consumers are willing to pay, depends on the marginal utility of the good. Therefore, there is a certain economic logic behind the combination of NFT and digital collection forms and the use of "scarcity" to give NFT "high value".
However, it should be noted that the value of NFT is not a "value" recognized by the majority of the market. In other words, the value of NFT is highly subjective. Popular speaking, water, food stuff, for everyone assured body dynamic role, so this value is recognized by all the real value, but the NFT collection for ordinary working-class, poor families, and even some investors, it is just a pile of code or capital of the game, for it doesn't make any sense.
Therefore, the "subjectivity" of value makes the transaction behavior of digital collections also face many problems. At present, the two largest digital collection platforms in China, "Whale Exploration" and "Magic Core", do not allow resale transactions of digital collections. Small and medium-sized platforms can be traded privately. Whether digital collections can be resale transactions requires legal confirmation of digital collections rather than qualification.
Because NFT has the function of confirming rights to digital assets, but the authenticated NFT digital collection does not mean that it has value. Or at the legal level in China, it is not clear whether the digital collections issued by the platform are private and tradable. The main risk of digital resale is that the current digital resale focuses too much on scarcity and not enough on artistic, or long-term, value. Worthless transactions are often a fad, or a passion purchase.
Investors need to be cautious
Even so, digital collection platforms are still popping up everywhere, and many companies are selling digital collections as a marketing tool. Internet companies such as Tencent, Xiaohongshu and Baidu have all launched NFT programs. As digital collection, first of all should have originality and artistic value, both of which is the basis of digital collection, using NFT, just secure the ownership of digital collection, if it is original and artistic value of the collection, should be reasonable category of digital collection marketing and trading, but in most cases is that many companies only use NFT marketing, In order to gain an advantageous position in the market.
However, there are also some companies to adopt risk-averse behavior. For example, wechat, based on user complaints, banned the digital collection public account platform and some small programs, prompting that "there is no legal license or license, release, spread or engage in relevant business activities."
It should be noted that although the large digital collection platforms are prohibited from trading, the phenomenon of digital collection speculation and trading still exists. At present, the confirmation of rights of digital assets still needs to be promoted by legislation. Especially, some digital assets are actually not original, and adding NFT to forcibly implant rights owners on the basis of non-original is likely to destroy the current intellectual property protection system. At the same time, there are still disputes about the confirmation of the rights of digital assets on the platform, such as the lack of legislative definition of the concept of digital assets and the definition of the property rights of NFT's digital assets, as well as whether equipment and currency in the game belong to user assets. The author believes that investors still need to keep a cautious attitude.