A Chinese spokesperson warned of a significant decrease in the value of NFT assets.
Local news announced that the Chinese government has denounced the value of the nonfungible token (NFT) market.
Securities Times first posted the news. But, South China Morning Post (SMCP) reported the statement. Note that the news publication service acts as a spokesperson for the official Chinese Communist Party outlet People’s Daily.
According to the reports, it is common sense that there is a huge bubble in NFT transactions. More so, the news also noted that most NFT buyers procure with a financial incentive focus only on the value of the assets rather than enjoying the visual qualities of the piece.
A writer at SMCP, Wang Junhui stated
“Once market enthusiasm wanes and the hype cools, the value of these many strange NFTs will greatly decrease.”
The statement comes after the rising of the NFT space since the beginning of the year. However, it repeated the discourse of People’s Daily in which they said that the NFT market “can be hyped up, leading to chaos, while decentralization may lead to security concerns.”
Furthermore, the country’s big tech players like Tencent Holdings and Alibaba Group Holding also have grown with NFT-focused research and development initiatives.
Last month, Tencent started its NFT trading platform Huanhe to integrate NFTs onto its music streaming platform, QQ Music.