Supreme People's Procuratorate: Will crack down on "pseudo-innovation" behaviors in the NFT market

ChainCatcher news, the Supreme People's Procuratorate of the People's Republic of China shared its thoughts on the NFT market in an article. The three authors elaborated on the prosecutors' views on market risks. The article noted the trend of "securitization" of NFTs, where multiple users jointly own a copy, which, in the authors' opinion, no longer meets the standards of non-replicability, indivisibility, and uniqueness.

Among other threats, prosecutors observed that marketing methods such as airdrops, blind boxes, and limited sales have led to "inflated prices" of digital collectibles. The uneven issuance thresholds have resulted in some collectibles lacking cultural significance and artistic value, and even infringing copyright, being fervently "sought after." The inflated prices lack a "reasonable pricing mechanism" and adequate value support, making them prone to deviating from basic value laws.

Additionally, according to the procuratorate, "false on-chain" activities pose fraud risks, and marketing models such as new user rewards and dynamic rights can easily evolve into illegal pyramid schemes. The article argues that all types of financial activities must be regulated by law, with measures against these risks including "crackdown on criminal activities," balancing punishment and governance, and strengthening risk assessment and legal publicity. The procuratorial organs will take on the task of distinguishing "true innovation" from "false innovation" and protecting the former, to avoid the phenomenon of "bad money driving out good." (Source link)