NFT
The article, written by three authors, outlines the plaintiffs’ view of the market risks and the following reasons for more actively enforcing them.
The authors pointed out that the “securitisation” trend of NFTs, which refers to the shared ownership of one copy by multiple users, no longer meets the criteria of non-reproducibility, indivisibility and uniqueness. They believe that this trend poses a major risk to the stability of the NFT market and should be addressed as soon as possible.
In addition, the plaintiffs raised concerns about the “price inflation” on NFTs, which has been caused by the use of various marketing methods such as airdrops, blind boxes and limited sales. The authors argue that the high prices of some non-fungibles are not supported by an “artistic beauty” and a “reasonable pricing mechanism”. Marketing models such as rewards and dynamic rights and interests can also easily evolve into illegal pyramid schemes, according to the public prosecutor’s office.
The proposed response to these risks includes a “crackdown on criminal activity”, equal emphasis on punishment and governance, and investment in risk research and legalization. The article suggests that it will be the state prosecutors who will take on the mission of separating a “genuine innovation” from the “pseudo” and protecting the former.
China has not changed its anti-crypto stance, despite steady progress in Hong Kong’s adoption of crypto. In addition, the country appears to be taking the same hostile approach to artificial intelligence (AI). In early May, a suspect was apprehended by local authorities and arrested in China’s Gansu district after allegedly using ChatGPT to generate fake news stories.
Despite the potential of the NFT market, it poses financial, security and “legal” risks, as Chinese prosecutors allege. Therefore, the market needs not only comprehensive governance, but also a crackdown on “pseudo-innovation.” However, it is important to keep in mind that this crackdown should not hinder the true innovation and creativity of the market.
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