The industry has always had a sense of uncertainty, as with all young tech creations that don't fit into traditional regulatory frameworks, the clock started early for when the Chinese government would step in. China has maintained a hard stance against the digital currency. The Chinese financial and cyber regulators have not yet banned the trading of NFTs, but the silence is casting a long shadow over the business.
The pledge letter doesn't have any legal effect, but it is binding to the members of these three associations.
While the state is silently considering its move, NFT industry players are trying to stay out of harms way.
The NFT platforms owned by the Chinese tech companies don't use the term anywhere. They call them digital collectibles because they are online on private-company-owned blockchains that are not fully transparent to the public. Government-issued currency is the only way to buy them.
In December, the NFT app Jingtan was released and now it is released as often as every day. These limited-edition offerings are usually 10,000 copies of renowned Chinese artworks or works by digital-native artists, and are sold at prices no higher than $5. It doesn't cost much to click in milliseconds to secure a purchase. Once they own it, they need to wait six months before giving it to someone else. Last year, the second hand marketplace was banned from listing any NFT products. The NFTs won't work as a financial investment because they don't have an official resale value.
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