Chinese Communist Party warns of NFT hype bubble
According to local sources, the Chinese government has released a series of statements denouncing the value of the nonfungible token, or NFT, market, even though two of the nation’s major tech firms are pursuing the technology.
The story was first released locally by the Securities Times — a news publication service acting as a spokesperson for the official Chinese Communist Party outlet People’s Daily — and reported by the South Morning China Post.
The remarks claimed that “it is common sense that there is a huge bubble in NFT transactions,” and that most NFT buyers who acquire with a financial motive focus solely on the value of the assets rather than appreciating the visual qualities of the piece.
Staff reporter for the SMCP, Wang Junhui writes:
“Once market enthusiasm wanes and the hype cools, the value of these many strange NFTs will greatly decrease.”
This echoed the rhetoric of a June publication from People’s Daily in which they stated that the NFT market “can be hyped up, leading to chaos, while decentralization may lead to security concerns.”
Earlier this year, the Chinese government
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