Chinese prosecutors’ attitude towards pseudo-innovation in the NFT market
The NFT market is booming. But it has its own risks. The national prosecution agency shared its thoughts on non-fungible tokens (NFTs). They highlighted the market risks and the reason to enforce them actively. The dynamic rights and interests can lead to unsustainable investments. They promise unrealistic returns.
Threats in the NFT Market
The article considers the first threat, which is the securitization of NFTs. This comes when an NFT has many owners, which no longer relates to the idea of uniqueness and community. The second threat is that price growth is affected by air drops, blind boxes and limited sales.
Airdrop is the distribution of NFT to public or whitelisted persons. It can be offered for free or you have to hold the token. You must also meet some necessary eligibility criteria. The other is blind boxes that contain unique random NFTs.
The third threat is the lack of artistic beauty and responsible price mechanism behind the high prices of NFT. NFT is known for its uniqueness. It became popular because no one can possess a certain authenticity.
But now some of the known ways have been pointed out by Chinese prosecutors. This shows that these pseudo-innovations affect the reality and individuality of NFT. If non-fungible token loses its fundamental nature due to certain innovations, loss of interest in this field can be assumed. As this can lead to threats in the NFT market.
Punishment and governance are suggested responses to save from NFT threats
The proposed responses to these risks include a crackdown on criminal activity. The equivalent response is generated for punishment and steering. These are all the threats in the NFT market that must be taken into account. Therefore, the national prosecution should take a stand to distinguish the true innovation from the pseudo one. Thus protecting true innovation.
Although China has not changed its view on crypto. While Hong Kong is making solid progress in crypto. China has the same view on ChatGPT. In May, fake news was generated in China’s Gansu district using ChatGPT. This leads to a tough attitude in use.
Art, music, videos, games and other digital assets are used as NFTs. It is a must to save it from criminal activity. Therefore, a poignant attitude should be taken. The Chinese prosecutor has received the necessary attention on this case. Distinguishing true innovation from pseudo-innovation in the NFT market is a necessity.
A firm approach should be taken against the pseudo-innovations. The popularity of non-fungible tokens among the general public in China is growing. The companies all over the country seek to develop and launch NFT projects in the country. As a result, this pseudo-innovation gains light. But China continues with its crypto ban policy.
