In April 2022, cryptocurrency entrepreneur Sina Estavi sold the $2.9 million Twitter NFT in hopes of auctioning more than $48 million, but by the end of the auction, the highest bid was less than $290. It is understood that this "sky-high twitter" is an NFT made of the first tweet released by Twitter founder Jack Dorsey in 2006.
What is "NFT"? NFT, known as Non-Fungible Token, refers to non-homogeneous tokens, is a unique cryptocurrency token used to represent digital assets (including jpg and video clip forms), with unique identification characteristics and accurate tracking. Simply put, NFTs are proof of ownership of virtual assets.
In recent years, the concept of metaversity has helped the development of overseas NFT markets, and digital assets, as one of the infrastructures of metacosmities, have shown great development prospects. In 2021, the transaction volume of NFT dollars reached 17.695 billion US dollars, an increase of 21350% year-on-year.
However, in 2022, the NFT community has experienced events from BAYC's acquisition of Cryptounks, fundraising for the war, and frequent hacking incidents, and the current mainstream NFT trading market has fallen in volume and price, and the entire market has shown a precursor to bubble bursting.
Although the mainland digital collection platform continues to emerge, the domestic NFT digital collection trading industry chain is still on the edge of the gray area, and the NFT-related trading rules still need to be improved. In the absence of supervision and uncertain market prospects, the domestic digital collection market still has a long way to go.
It is worth mentioning that the China Internet Finance Association, the China Banking Association, and the Securities Association of China issued an initiative on April 13 on preventing financial risks related to NFTs (Non-Fungible Tokens). The initiative proposes to resolutely curb the tendency of NFT financialization and securitization. Financial assets such as securities, insurance, credit, and precious metals are not included in the underlying commodities of the NFT, and financial products are issued and traded in disguise. (Article | Yu Yang, Caijing Tianxia Weekly)