On April 13, the Internet Finance Association of China, the China Banking Association, and the Securities Association of China issued an initiative on preventing NFT-related financial risks. Coincidentally, just a few days ago, the public accounts of several digital collection platforms were suddenly banned. Most of the platforms were prompted as "complaints from users and audited by the platform, there are behaviors of publishing, disseminating or engaging in related business activities without obtaining statutory permits or licenses, and the account has been suspended"; the reason for the ban of some platforms is Alleged fraud.
There is no need to repeat the hot NFT market. But so far, due to different public perceptions, NFT is still a highly controversial topic. From the perspective of the market, most of the external presentations of NFT are works of art or randomly generated images. Supporters believe that they are fashionable works of art with important real-world value, and are likely to maintain value-added; on the other hand, more Some people see NFT as a hype scam with inflated prices and little real utility.
In this regard, Cao Shenghu, CEO of Yuhu Technology, said: You don’t have to believe how good NFT is or how useful it is. The fact is that NFT has been or is being used in various ways. When it comes to the so-called scams, Cao Shenghu pointed out that we first need to clarify a concept, NFT has always been just a tool, don't confuse the tool with the person who uses the tool. Before the birth of NFT, there was no shortage of scams in this world.
Many times, people habitually confuse NFT with digital collections, but NFT ≠ digital collections. To put it simply, digital collections are localized improvements made to comply with national policies and regulations after the introduction of NFT into China. Different from NFT, digital collections are issued on the alliance chain, which requires centralized review, especially weakening its financial attributes, emphasizing collection attributes, and strictly restricting secondary transactions.
This kind of localization improvement has curbed the industry bubble to a certain extent, but judging from the current domestic market development, there are only a small number of people who really use digital collections as collections, and most of them still resell or even hype them as commodities, so among them The bubble crisis in China still cannot be ignored. Take museums as an example. As of 2018, there are more than 5,000 museums in China. How many collections and cultural relics in the museums are waiting to be digitized on the road. When these duplicated collections flood into the market, it will inevitably cause public aesthetic fatigue and Market saturation.
In addition, this type of model also has a great disadvantage: at the moment when the Metaverse has not yet "come to fruition", the current digital collections lack rights and value mapping. The holder of the collection only has certain rights and interests in the digital collection, but cannot do more in-depth commercial operations. From the essence of this digital collection, the ownership of this IP does not belong to you, you just bought a digital copy of it. In other words, the transaction value of digital collections ≠ the use value, which undoubtedly increases the risk of asset bubbles.
"We have been thinking about how to define NFT digital collections, how to make it and realize its rights and interests under the premise of compliant development? It is difficult to express the culture of IP such as cultural relics, and it needs to be more down-to-earth , to break through the small circle for popular dissemination and appreciation; instead of saying that this is an IP, you can buy it, that’s all. It’s meaningless to sell an avatar or a picture, the important thing is what you can do after you have it .” The person in charge of YuhuLabs disclosed.
At present, the digital collections issued on the market basically do not have property right certificates. On the one hand, it is not clear what rights and interests the digital collections enjoy, and there are also problems in the circulation of their rights and interests. Yuhu is exploring to enhance the broader and popular commercial space of NFT by legally granting some rights to NFT for sale, such as copyright, authorship, and sharing ideas. Just like the famous Boring Ape, you only need to buy one of the 10,000 monkeys for commercial use, such as opening a milk tea shop, using it as a logo, etc., then such an NFT will no longer be just " Air".
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