Chinese prosecutors to crack down on 'pseudo-innovation' in NFT market

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China looks into accurately punishing crimes in the name of NFT innovation.

published, three authors laid out the prosecutors’ vision of the market risks and the following reasons to enforce it more actively.

The article pays attention to the tendency of “securitization” of NFTs, i.e. the shared ownership of one copy by multiple users, which, in the authors’ opinion, no longer corresponds to criteria of non-reproducibility, indivisibility and uniqueness. Among other threats, the prosecutors see the “inflation of prices” on NFTs, triggered by marketing methods such as airdrops, blind boxes and limited sales. Taking the ambitious breed of esthetic and economic analysis, the authors mention a lack of “artistic beauty” and “reasonable pricing mechanism” behind the inflated prices of some non-fungibles. According to procuratorate, marketing models such as rewards and dynamic rights and interests can also easily evolve into illegal pyramid schemes.

 

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