by colin wu
Recently, the NFT platforms led by Tencent and Alibaba have deleted the words NFT and changed their names to "digital collections" after receiving communication from relevant regulatory authorities.
It is fortunate for the Chinese industry that NFT has not been killed by regulation. But will this NFT with Chinese characteristics be successful? It is completely different from the current NFT logic of the Western world.
First, the driving logic.
The core reason for the formation of the NFT trend this year is still the logic of the crypto industry, the formation of a market platform for constant trading, and the creation of a community of NFTs and traders, all of which is backed by the profit that is quickly gained. Profitable trading remains the core reason for the popularity of NFT, and OpenSea has already surpassed $10 billion in total trading volume, with a steady daily trading volume of around $50 million. Most of the participants are in it for profit, not for collecting.
The Chinese style "digital collection" requires "resolutely resisting any form of malicious speculation on the price of digital creative works", and it is not yet known whether it can be opened for trading (the ant chain is held for 180 days), and it is difficult for auction houses to participate, so it is different in this essential driving attribute.
First, the driving logic.
The core reason for the formation of the NFT trend this year is still the logic of the crypto industry, the formation of a market platform for constant trading, and the creation of a community of NFTs and traders, all of which is backed by the profit that is quickly gained. Profitable trading remains the core reason for the popularity of NFT, and OpenSea has already surpassed $10 billion in total trading volume, with a steady daily trading volume of around $50 million. Most of the participants are in it for profit, not for collecting.
The Chinese style "digital collection" requires "resolutely resisting any form of malicious speculation on the price of digital creative works", and it is not yet known whether it can be opened for trading, and it is difficult for auction houses to participate.
Secondly, the logic of confirmation of rights.
The second reason for NFT to gain mainstream recognition is based on the decentralized public chain to bring digital artwork to confirm and flow, and the collection of digital artwork has become possible. It is because digital collectibles are easy to copy and infringe that blockchain becomes more valuable in this area. To ensure the ownership confirmation of NFT, the vast majority of NFT will choose the decentralized Ethereum chain rather than other public chains with a higher degree of centralization. Chinese digital collections, based on the alliance chains under Tencent, Alibaba, etc.
Third, the logic of participation in creation.
In the traditional NFT network, anyone can create and upload in OpenSea, and any user who has a cryptocurrency wallet can directly participate in the purchase and and transaction. However, for Chinese organizations, completely free and open creation and participation and trading are impossible and must be vetted, which makes it difficult for them to gain the acceptance of the international NFT community and ecology.
Fourth, native IP.
The native NFT head IP led by CRYPTOPUNKS, bored ape yacht club, etc., which in turn drives a large number of native central IP, as well as many innovative projects such as Art Blocks, NFT DAO, etc. In contrast, digital collections with Chinese characteristics currently do not have independent native NFT IP, more of a subordinate to celebrities, games and even corporate advertising promotion.
In summary, digital collections with Chinese characteristics are very different from traditional Western NFT in terms of underlying logic and overall ecology. We can't judge whether it will be successful in the future, but it must be a completely different route. In contrast, Chinese game studios that already have rich experience in going abroad and are more competitive in the field of blockchain games.
