Chinese Prosecutor's Stance On Pseudo-Innovation In NFT Market

The NFT market is booming. But, it has its own risks. The national agency responsible for legal prosecution shared its thoughts about nonfungible tokens (NFT). They highlighted the market risks and the reason to enforce them actively. The dynamic rights and interests can lead to unsustainable investment. They promise unrealistic returns.

Threats in NFT Market

The article pays attention to the first threat, which is the securitization of NFTs. This comes when one NFT has many owners, which no longer relates to the idea of uniqueness and jointness. The second threat is the inflation of prices is affected by airdrops, blind boxes, and limited sales.

Airdrop is the distribution of NFT to the public or whitelisted individuals. It can be offered free, or you must hold the token. Also, you must fulfill some eligibility criteria needed. The other is blind boxes which hold unique random NFTs.

The third threat is the lack of artistic beauty and responsible pricing mechanism behind the inflated prices of NFT. NFT is known for its uniqueness. It gained popularity because no one can own a particular authenticity.

But now, some of the known ways are pointed out by Chinese prosecutors. This shows that these pseudo-innovations affect the reality and individuality of NFT. If Non fungible token loses its basic nature due to certain innovations, then a loss of interest in this field may be assumed. As this can lead to threats in the NFT market.

Punishment and Governance are Proposed Responses to Save From NFT Threats

The proposed responses to these risks include a crackdown on criminal activity. The equal response is generated for punishment and governance. These are all the threats in the NFT market that need to be paid attention to. Hence, the national prosecutor should take a stance to separate the true innovation from the pseudo one. Thus, protecting true innovation.

Though, China has not changed its view on crypto. While Hong Kong is making firm progress in crypto. China holds the same view for ChatGPT. In May, fake news was generated in China’s Gansu district with the help of ChatGPT. This leads to a tough stance in using it.

Arts, music, videos, games, and other digital assets are used as NFTs. It is a must to save it from criminal activity. Hence, a gripping stance should be taken. The Chinese prosecutor has gained the needed attention on this matter. Separating true innovation from pseudo innovation in the NFT market is a necessity.

A firm approach should be taken against the pseudo innovations The popularity of Non fungible token among the general public in China is growing. The firms across the country are seeking to develop and launch NFT projects in the country. As a result this pseudo-innovation is gaining light. But, China is continuing with its crypto ban policy.