China NFT Platform Research Report 2021

On March 11, 2021, artist Beeple’s Everyday: The First 5000 Days sold for $69,346,250 at Christie’s, equivalent to approximately 450 million RMB. This work became the most expensive NFT artwork and the third highest price for a work by a living artist at auction.

The NFT industry from a policy perspective

NFT industry

The development path of NFT in China will follow a different business model from that of overseas markets, with Chinese companies starting more from copyright protection, playing the function of proof of digital property rights of NFT, and emphasizing the exploration of coinless NFT.

NFT trading platform

According to current Chinese national policies and laws and regulations, the most secure way to establish the NFT trading market is through licensed operations, the NFT trading market or exchange needs to hold a class financial license, followed by pawning.

NFT industry overview

Definition, characteristics and core values

NFT can be understood as a certificate of ownership of a virtual or physical asset. nft has six main characteristics, namely verifiability, transparent execution, validity, immutability, accessibility, and tradability.

NFT Market Size

Based on the sales of Antchain and the global NFT growth rate, the NFT market size in China is predicted to reach $29.52 billion in 2026, with high potential for future development.

Types of NFT casting and issuance

The types of NFT casting and distribution can be mainly divided into PGC and UGC. the main profit model of PGC is sales share and earning the difference. the profit model of UGC is mainly the fee, followed by the difference of GAS fee.

NFT Market Value Allocation

The value capture of the infrastructure layer is based on the casting and trading of NFT, and a certain Gas fee (miner’s fee) is required to record the casting and trading information on the blockchain; the income of project creators (individuals or teams) mainly comes from the primary market sales revenue and secondary flow royalty income.

NFT industry trends

Development Trend

In the future, traditional consumer companies will enter the NFT market, while the blockchain game and metaverse sectors will drive future NFT industry expansion. China will gradually establish sound NFT-related trading rules and gradually open up the NFT secondary trading market.

In China, the attributes of NFT are not characterized, while the lack of regulation and restraint by relevant departments and documents has led to the slow development and poor circulation of the NFT industry in China. With the development of blockchain technology and the increasing scale of NFT market, China will gradually formulate and improve relevant documents to assist the development of NFT industry in China. At the same time, under the guidance of the government, the NFT industry is expected to gradually open up the secondary market.

Translated with www.DeepL.com/Translator (free version)