Chinese Communist Party warns of NFT hype bubble

As the party’s spokesperson the local news publication warned of a significant decrease in the value NFT assets once the bubble bursts.
Local sources claim that the Chinese government has issued a series statements decrying the value the non-fungible token market. This was in response to a People’s Daily publication in June that stated that crypto mining operations could be “hyped up” and lead to chaos. Tencent Holdings and Alibaba Group Holding, the country’s largest tech players, have made progress with NFT-focused research development initiatives and are now actively participating in the space. This echos the rhetoric of a June publication from People’s Daily in which they stated that NFT market “can be hyped up, leading to chaos, while decentralisation may lead to security concerns.” However, Chinese NFT advocates remain restricted in their trading activities. Transactions can only be made using the official currency of the nation, Renminbi. NFT’s can’t be resold after they have been purchased, as this would violate the nation’s financial laws.

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