The virtual currency trading and mining industries have gradually died down under the heavy hammer of domestic supervision. In contrast, NFTs (non-homogeneous tokens) born out of the currency circle have gradually entered the mainstream world.
Since 2021, this new thing has helped with the decentralization, immutability and traceability of the blockchain, as well as the unique and irreplaceable characteristics of NFT itself. Digital art works were confirmed, transferred, and realized, so they took the lead in the art circle and quickly became the outlet of the currency circle.
At that time, Bitcoin was still in the hot bull market stage. Now, facing the situation of losing the support of the bull market and strict supervision of virtual currencies, the popularity of NFT is not diminishing, but it is becoming more and more popular. lock up”. Not only art, music, games and other industries continue to deploy NFTs, AntChain also launched NFT series of products, among which Dunhuang Feitian NFT even fetched up to 1.5 million yuan in Xianyu.
NFT is usually called a non-homogeneous token. What is the difference between it and virtual currency? Is there a need for supervision under the current market bubble?
What is the nature of NFT
“NFT and tokens are still quite different in nature. Because of their non-homogeneity, the characteristics of currency are substantially Weakened, the characteristics of the assets are stronger. Non-homogeneity also greatly reduces their liquidity. Without malicious speculation, the liquidity is not high.” Wang Zhicheng, an associate professor at the Guanghua School of Management of Peking University, told reporters.
Li Ya, partner of Beijing Zhongwen Law Firm’s Finance and Capital Markets Platform, also mentioned in a news interview that NFT is essentially a token, but it is different from Bitcoin. There are essential differences between other virtual currencies. Bitcoin and other virtual currencies are homogenized tokens, which have the characteristics of fungibility and severability. They can be circulated as general equivalents. They are reflected in the wallet by quantity, and NFT is unique. And it cannot be split, what is reflected in the wallet is the content.
Wang Yongli, former vice president of Bank of China and chief economist of Shenzhen Neptunus Group, pointed out in the article “NFT must be treated with caution” that some people have translated NFT into “non-homogeneous “Tokenization” is actually inappropriate. NFT cannot become a general equivalent or a unified accounting unit, and it is absolutely impossible to become a currency or a token.
“Actually, NFT is a kind of irreproducible type of rules and information derived from the blockchain technology.An indivisible and unique digital (encoded) encrypted equity certificate used to indicate the ownership of a certain digital item. Therefore, it is more appropriate to translate NFT into’non-homogeneous warrant'”. Wang Yongli said.
However, Sun Yang, a researcher at the Suning Institute of Finance, mentioned in a news interview Although NFT is based on encrypted artworks, it is non-homogeneous, but from a national perspective, it is similar to Bitcoin. It is a virtual token that transfers the value of legal currency through a trading platform to be able to store A non-monetary place of value, the form of tokens has changed from homogenized to collection cards, star cards, artworks, etc., in essence, it is still a token, with the digital form of artworks and collections as the main medium of tokens The difference between
” and other virtual currencies is that it has original, artistic, and commemorative connotations, not just a number calculated by consuming electricity to mine Coins’, and NFT is supported by various art communities. “He said.
Or deposit money laundering, infringement and other issues
Shanghai Advanced Professor Hu Jie of the School of Finance once told the news that the essential role of NFT is to record the ownership of works of art. It can better implement copyright rules. Although NFT cannot prevent piracy, because pictures can be copied, it will confirm the rights. , Authorization, and rights protection have become relatively easy.
But recently, original photographic works of some media have been published and made into multiple versions of NFT, and they have been auctioned for high prices. Can’t help but question whether there is a real right value for NFT?
” This may involve infringement issues. “Li Ya said.
He believes that NFT itself is a tool, an electronic mark, and cannot directly solve the problem of right confirmation. However, he believes NFT still has a certain value in the digitization of assets, “the key is who will use it.” Wang Zhicheng also believes that this reflects the neutral characteristics of the technology itself. The whole The mechanism of social rewards and punishments for the poor has not been fully formed. A single technology cannot be achieved overnight, and a multi-party restraint mechanism is required. “Moreover, the current NFT has not yet been recognized by the mainstream society, and laws and regulations and some follow-up measures have not been followed up. “.
“It’s not about numbering the work, it’s worth having a nameValue, but the work truly reflects the meaning and brings value to the society, is where the value of the work lies. “Sun Yang said.
He said that the pirated NFT authors and the NFT community itself should reflect on it, and the market needs to crack down on such blatant piracy.< br>
Sun Yang also mentioned that NFT has regulatory risks, including the infringement of consumer rights by asset price fluctuations, money laundering risks, terrorist financing risks, etc.
From a legal point of view, Li Ya pointed out that NFT may have two risk issues. The first is infringement. The issuer of NFT infringes the copyright of others; the second issue is ICO through NFT. May involve the issue of illegal fundraising.
Need to strengthen supervision
“The current supervision mainly targets virtual currency mining and trading, and there is no NFT involved because the current supervision system basically belongs to In hindsight, virtual currency has already had an impact on the risk and loss of manufacturing, and at the same time it has carbon emissions, which has been given priority attention.” Wang Zhicheng said.
He believes that because of its indivisibility, the scope and speed of NFT stakeholders have been greatly reduced. Although there are also functions for money laundering and asset transfer, it is still in the early stage and there is no The occurrence of incidents that have attracted the attention of supervision has relatively small impact on the society. If the future development exceeds the scope of its reasonable use and has a relatively large negative impact on the financial system and society, “supervision is inevitable.”
“If supervision is required, it is necessary to supervise the flow of funds after the funds flow into NFT beneficiaries, to prevent funds from flowing into areas such as political contributions, money laundering, terrorist financing, etc., and to supervise NFT products In itself, strictly guard against piracy and plagiarism.” Sun Yang thinks.
Wang Yongli pointed out in his article that due to the lack of clear official guidelines and regulatory rules, many self-media propaganda reports have serious exaggerations and misleading issues, and the country strictly controls bits. When the mining and trading of virtual currencies such as coins are hyped, the rapid heating up of NFTs and large-scale investments, especially participation in overseas NFT investments, also have great risks.
Wang Yongli suggested that it is necessary to strengthen the accurate interpretation of NFT, strengthen investor education to the public, and strengthen the responsibilities of the trading platform, To strengthen the whole-process supervision of NFT products and transactions, especially to impose severe sanctions on related false propaganda, internal hype, financial fraud, illegal transfer of assets, and money laundering.