Cryptocurrency markets

China is going crazy with NFTs

China is going crazy with NFTs
The market for non-interchangeable tokens has received a new impetus. Now the NFT fever has started in China as well, with large companies and organizations already joining in. Investment firm Sino Global Capital says the sector is "growing rapidly," mostly in China.
Alibaba, media agency Visual China Group (VSG), NetEase, ByteDance, the parent company of social media platform TikTok, have said they too are entering this market.

Their actions coincided with acquisitions of NFT by Western companies and individuals. For example, VISA acquired one of the NFTs that is part of the CryptoPunks collection. Sino Global Capital, believes that this can take the NFT market to a new round of development. There are all preconditions for this. As we know, CryptoPunks was purchased by Cai Wensheng, the founder of Meitu, Feng Bo, the founder of Dragonfly Capital, and others.
China is going crazy with NFTs

China is going crazy with NFTs

The interest in NFT is also supported by the participation of retail investment funds. Previously, the mass craze for digital art in tokens was observed from small investors, who bought them in order to lock in profits faster, and millennial investors, for whom NFTs are a kind of luxury goods.

This should spark further demand for non-interchangeable tokens, as many platforms now want to use NFTs to attract new customers.
According to former BitMEX CEO Arthur Hayes, the NFT market should help improve the overall infrastructure of the art industry by reducing transaction costs, reducing the number of intermediary structures, and this type of token will have even more fans.
Hayes also says that NFTs are becoming so popular also because users want to get a new social status and become members of exclusive communities.

Most likely NFT market will continue to thrive, but also this scenario is possible - it will be another digital bubble which may burst after the users and companies find new digital toys to invest in.
And the likelihood of this scenario is quite high, since the existing digital marketplace is constantly generating new ideas and meanings, offering to make money from them. And what was popular and prestigious a month ago becomes unattractive and useless.

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