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Despite the Chinese government cracking down on cryptocurrency activity in the country, traders have found a way around regulatory hurdles by turning to off-the-books trading of second-hand NFTs.
Since China has banned payments using cryptocurrencies, all domestic NFT transactions are done in yuan.Also, because of the country Aversion to blockchain technologyNFTs will not be issued through a decentralized blockchain, but through a database managed by a Chinese company.
In response to this position, many digital collection platforms in the country have blocked the resale of NFTs. That said, this was not a unanimous strategy. began allowing users to transfer ownership of NFTs. This forwarding capability has opened the opportunity for new platforms to be formed that match sellers and buyers.
This case study is a recent digital collection of 10,000 assets. ant group, the financial arm of Alibaba Group Holding. The properties, each depicting the traditional helmets of China’s Miao ethnic minority, sold out quickly at a price of 8 yuan ($2.66) each. With the transfer platform in question, many of the Miao Headpiece NFTs immediately appeared on the platform. unnamed online flea market At 50% markup after sale. Here we can assume that the flea market sale and the transfer platform transfer take place symbiotically in a black market-like style.
Such operations remain accessible for now, but if or when authorities crack down, they will either be eradicated or become illogical to pursue from an economic standpoint.
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*All investment/financial opinions expressed by NFT Plaza are based on the personal research and experience of the site moderators and are intended for educational material only. , the product should be thoroughly investigated.
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