The Chinese Communist Party, which has been in power in China for years and has now become the only ruling party in the country, has issued a new warning to the crypto money industry. According to the information cited by the Securities Times, which is seen as the media source of the Chinese government, the Chinese Communist Party and government see NFTs as a great danger.
NFT Alert From China
Stating that NFT transactions are creating a big bubble for the time being, party officials emphasized that those who make NFT flows buy it to sell it at a higher price, and that this bubble will deflate at some point. Although it is known that the sale of this asset only to sell it at a higher price instead of investing in it is known to be dangerous, according to the information conveyed by the South China Morning Post correspondent, the authorities stated the following on the subject:
Once the market hype is gone and the tide cools down, these strange NFTs will drop in value drastically.”
In fact, NFTs allowed Solana, which was trading under $100 recently, to even higher than $200. In addition, cryptocurrencies such as Avalanche and Ethereum have also benefited significantly from the NFT flow. Alibaba’s financial partner Ant Group has also recently posted two NFTs for sale on its Alipay app. China’s interest in NFTs is expected to be clearly understood from here. Although China is known for its cryptocurrency bans, it is still an important location for NFT and DeFi.