In a world where digital ownership is redefining value, a single pixelated monkey avatar selling for over 1 million RMB might sound absurd—yet it happened. NBA superstar Stephen Curry’s reported purchase of a Bored Ape NFT for approximately 116,000 RMB sparked global conversation and brought NFTs (Non-Fungible Tokens) into mainstream spotlight. But what exactly are NFTs? Why are major tech companies rushing in? And more importantly, can this digital phenomenon last?
What Are NFTs?
At its core, an NFT is a unique digital token built on blockchain technology, representing ownership of a specific digital or physical asset. Unlike cryptocurrencies such as Bitcoin or Ethereum—where each unit is interchangeable (fungible)—each NFT is one-of-a-kind and cannot be replicated or divided.
Think of it like a digital certificate of authenticity. Once a piece of content—a painting, song, video clip, or even a tweet—is minted as an NFT, it becomes a verifiable, immutable record on the blockchain. Every transaction, from initial sale to resale, is permanently tracked. This ensures provenance, scarcity, and ownership transparency.
👉 Discover how blockchain powers the future of digital ownership
The Global NFT Boom
The rise of NFTs has been nothing short of explosive. In 2021, digital artist Beeple made headlines when his collage of 5,000 daily drawings sold at Christie’s for a staggering $69.3 million, marking one of the most iconic moments in NFT history.
Since then, NFTs have expanded beyond art into music, gaming skins, virtual real estate, domain names, and even sports memorabilia. Platforms like OpenSea and Rarible have become bustling marketplaces, with collectors and investors snapping up digital assets at premium prices.
But while international markets embrace open trading and speculation, China’s approach remains distinct—measured, cautious, and tightly aligned with regulatory expectations.
How Chinese Tech Giants Are Shaping NFTs
While Western platforms allow free resale and secondary market speculation, Chinese companies are pioneering a more controlled model—often referring to their offerings as "digital collectibles" rather than NFTs to avoid financial connotations.
Major players have quietly entered the space:
- Alibaba launched an NFT art auction zone on Taobao’s Alibaba Auction in May.
- Ant Group’s Alipay introduced limited-edition NFT payment code skins in June.
- Tencent debuted its NFT platform “Huanhe” (Fantasy Core) in August, releasing exclusive digital collectibles like the audio version of the talk show TRExplorer.
These products typically sell out within minutes, reflecting strong consumer interest. However, there's a crucial difference: no secondary trading is allowed.
Users can view and collect these digital items—but cannot resell, transfer, or gift them. Moreover, users cannot upload or mint their own NFTs on these platforms.
This restriction isn’t technical—it’s strategic.
Why the Caution? Regulatory Clarity Comes First
China has long maintained strict rules around cryptocurrency and financial speculation. While blockchain technology is encouraged under national strategy, any application that resembles securities trading, money laundering, or unregulated fundraising faces immediate scrutiny.
As Yu Jianing, chairman of the Blockchain Committee at China Communications Industry Association, explains:
“NFTs in China are currently more like electronic records of digital rights—not financial instruments. They lack interchangeability and circulation capabilities, which minimizes speculative risks.”
Literature, senior researcher at OKEx Research Institute (now part of OKX), adds that Chinese firms are carefully exploring the asset digitization potential of NFTs without crossing into gray areas.
“Internet companies see NFTs as a bridge between physical and digital worlds,” he says. “But until policies mature, they’re avoiding open-market trading to stay compliant.”
👉 See how regulated innovation shapes the future of digital assets
Use Cases Beyond Hype: Solving Real Problems
Despite skepticism, NFTs solve genuine challenges—especially in intellectual property protection.
For creators—musicians, artists, writers—digital piracy has always been a major issue. With traditional platforms, proving originality and tracking usage rights is difficult. NFTs change that.
By minting a work as an NFT:
- The creator establishes undeniable proof of origin.
- Every subsequent use or transfer is recorded.
- Royalties can be programmed directly into smart contracts for automatic payouts upon resale.
This makes NFTs particularly valuable in creative industries where attribution and compensation have long been broken.
The Road Ahead: Challenges and Opportunities
While the vision is bold—“everything can be an NFT,” from concert tickets to real estate—the reality is complex.
Key Challenges Include:
- Regulatory uncertainty: Laws governing digital ownership vary widely across jurisdictions.
- Environmental concerns: Early blockchains like Ethereum consumed vast amounts of energy (though upgrades like Ethereum 2.0 have significantly reduced this).
- Scalability: Mass adoption requires faster, cheaper networks.
- Fraud prevention: Scammers may exploit hype by inflating worthless assets with fake narratives.
Yu Jianing emphasizes the need for clear industry standards:
“We must define what kind of NFT development suits China—what’s allowed, what’s off-limits. Only then can we integrate NFTs into the real economy responsibly.”
Literature envisions a future where physical assets like cars or homes are tokenized and managed via blockchain. But first, foundational systems—legal frameworks, identity verification, cross-platform interoperability—must be built.
Frequently Asked Questions (FAQ)
Q: Can I make money buying NFTs?
A: While some early adopters profited from speculative trades, most Chinese platforms prohibit resale. Treat domestic digital collectibles as long-term keepsakes rather than investments.
Q: Are NFTs the same as cryptocurrency?
A: No. Cryptocurrencies like Bitcoin are fungible (each unit is identical and exchangeable). NFTs are non-fungible—each is unique and represents ownership of a specific item.
Q: Is creating an NFT expensive?
A: Costs depend on the platform and network fees (“gas”). On some Chinese platforms using private chains, minting is nearly free and seamless.
Q: Can anyone create an NFT?
A: Globally, yes—if you have access to public blockchains. In China, most platforms restrict creation to official partners or verified artists.
Q: Do NFTs have environmental impact?
A: Older proof-of-work blockchains did. However, modern systems use energy-efficient consensus mechanisms, reducing carbon footprints dramatically.
Q: Could NFTs be used for illegal activities?
A: Like any technology, misuse is possible. That’s why Chinese platforms limit functionality and emphasize compliance to prevent fraud or illegal fundraising.
Toward a Sustainable Digital Future
The dream of “tokenizing everything” remains aspirational—but progress is underway. From protecting creators’ rights to enabling transparent supply chains, NFTs offer transformative potential beyond collectibles.
For now, China’s model prioritizes stability over speed, focusing on utility rather than speculation. As regulations evolve and infrastructure improves, we may see broader applications emerge—from verified academic credentials to tokenized carbon credits.
👉 Explore how secure blockchain platforms support responsible innovation
The question isn’t whether NFTs will last—it’s how they’ll evolve to serve both individuals and society in meaningful ways. One thing is certain: digital ownership is here to stay.