China’s NFT Divergence Boosts Black Market – NFT Plaza

While the Chinese government has clamped down on crypto activity in the country, traders have found a way to avoid regulatory hurdles through off-the-book transactions for secondhand NFTs.

Since China has banned payments using cryptocurrencies, all NFT transactions in the country are done in yuan. In addition, and because of the country Adverse stance towards blockchain technologyNFTs are not issued through a decentralized blockchain, but rather through a database managed by a Chinese enterprise.

In response to such a position, many digital collectibles platforms in the country have blocked the ability to resell NFTs. That being said, it was not a unanimous strategy, as companies tried to continue promoting NFTs in the country By starting to allow users to transfer ownership of NFTs, obviously no money changes hands. This shifting feature has opened up opportunities for new platforms that match sellers to form buyers.

A case study for this is from a recent 10,000 asset digital collectibles collection Ant group, the financial arm of Alibaba Group Holding. The assets, each depicting the traditional titles of China’s ethnic minority Miao, sold out immediately at 8 yuan ($2.66) each. Now with the transfer platform in question, many Miao headpiece NFTs appeared in one instant Anonymous Online Flea Market After their sale, at a 50% markup. Here, we can assume that flea market sales and transfer to transfer platforms will then occur symbiotically in a black market style.

While such activities remain accessible for the time being, if, or when, the authorities crack down on them, they will either be eliminated, or alternatively, will become unviable to pursue from an economic point of view.

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*All investment/financial opinions published by NFT Plaza are derived from the personal research and experience of our site moderators and are intended as educational material only. Individuals should do thorough research on any product before making any type of investment.

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