How entering the NFTs would impact Huawei amidst China's Crypto ban?

Any tech giant entering the crypto space makes headlines all over, especially when its a Chinese firm

China has put up the regulations regarding crypto operations and banned cryptocurrency-related to almost all activities, including trading, investing, holding, mining, etc. It was September last year when the second-biggest economy took harsh actions against the digital assets economy. The whole crypto market witnessed a blow after the decision in China, which is one of the most affected areas of mining cryptocurrencies. At the time of the crypto ban in China, the country was one of the prominent areas in the world regarding crypto mining, especially bitcoin.

In such an environment in China, when it comes to knowing that any firm based in the country is stepping into crypto anyhow, either via possessing a digital asset or creating an NFT, it makes news worth noticing. Such an incident happened recently when a popular Chinese tech giant went to join the non-fungible tokens revolution in its way.

Famous multinational technology corporation Huawei’s cloud computing subsidiary has airdropped the first batch of non-fungible tokens of the brand. This makes the tech giant the latest firm in China to join the digital asset trend. The brand’s recent airdropping of NFTs is following its part of the plan under the branding campaign for Huawei Cloud.

The NFTs launched are based on the company’s blockchain, the petal chain, despite Huawei not publicly stating any plans to launch it on the NFT platform. Soon after the launch, almost all the NFTs were sold out.

Earlier than Huawei, other Chinese tech giants like Alibaba, Tencent, NetEase, Baidu and JD.com have launched their NFT marketplaces. Since there are no clear regulations in the country regarding NFTs, the stepping of tech giants into the digital space is heavily criticized by Chinese media, which is majorly state-owned and sponsored. Along With the criticisms, they also prompted the company to ban or restrict its NFT reselling.

No regulations and restricting approach of China results in trampling down the efforts made by companies and evolving stage of digital assets. Several research reports brought in April by a Chinese Brokerage firm Guosen Securities have noted that if regulators would allow NFTs reselling in the country, then the NFT market in China would have a valuation of around 29.8 billion Chinese yuan or $4.68 billion, which is currently standing at only 6 billion yuan or $937 million, due to no regulations and strict restrictions.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing