Chinese Communist Party warns of NFT Hype Bubble

ByEdward Thompson

Sep 11, 2021

One of the biggest reasons that people hate communist regimes is because they start owning everything.  The same is the case in China. A Chinese local news publication accused by many as state’s puppet seems to have published the government’s narrative about the NFT hype. The new newspaper warned citizens about NFT and said that investors must stay away from NFT tokens because NFTs are overhyped and overpriced. Soon the NFT hype will come to a normal place and the prices of NFT tokens will go down drastically the newspaper argued.

Multiple local sources have claimed that the Chinese government has released multiple statements against the current standing of NFTs. And predicted a dramatic fall in the value of the nonfungible token. Even though two of the Biggest Chinese firms are moving forward to acquire such technology.  It turned out that the story was first released domestically by the Securities Times — a news publication acting as a spokesperson for the official Chinese Communist Party Outlet People’s Daily — and also released by the South Morning China Post.

The statement further added “it is quite clear that there is a huge fizz in NFT transactions,” and a majority of the traders buying NFT are motivated by the financial benefits of the NFT tokens. The value of the NFT tokens is the biggest point of attraction. However, the visual qualities of non-fungible (NFTs) are far from the industry standard. The sources also cited a few domestic crypto experts arguing about the future of NFTs. They said that NFTs will decrease dramatically in the future.


However, the crypto community has reacted to the news being published by these local new papers. Crypto experts have accused that these resources are bidding on the behalf of the Chinese Communist regime. They further accused that the current political regimes have malign intentions towards the crypto. The Chinese government is planning to launch state-owned Digital Tokens controlled by the People’s Bank of China.

The critics have also said that previously Chinses authorities launched a planned crackdown against Crypto mining in China. Now, a planned attack is being launched on NFTs in China. All this is being done to make the way clear for the lunch of State-owned digital tokens. However, despite all this government and private sector tussle. Two of the country’s biggest technology and corporate tycoons Tencent Holdings and Alibaba Group Holding both have developed ties with NFTs developers and looking to launch their own non-fungible tokens (NFTs) in the future. Chinese authorities on the other hand had already limit the crypto mining and trading in the Country. It seems the Chinese government is not going to change its decision any soon.


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