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🇨🇳 Countdown to China's State-Backed NFT Marketplace

There is still a way to go before we see any true China NFTs but it could happen faster than we think.

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The Metadata
January 04, 2023

GM. A warm welcome to everyone who just joined us yesterday. You're in the right place — we've got you covered on everything related to NFTs. Let's get right down to it.

Today we cover:

  • Spring Time for Solana NFTs

  • China's 1st State-Backed NFT Platform... has a countdown timer

  • Today's Most Interesting Tweets

🌸 Spring Time For Solana NFTs

The number of daily transactions on Magic Eden has been steadily rising month-over-month, indicative of strong user activity. Magic Eden is Solana's premier NFT marketplace and thus is a barometer of the health of the Solana NFT ecosystem. In short: it's thriving.

Negligible transaction fees (<$0.01) and fast transactions (<1s) contribute to a better user experience on Solana compared to many other blockchains. 

(h/t @rexzhou)

🇨🇳 Countdown to China's State-Backed NFT Marketplace

💲 What to know: You don't hear a lot about NFTs from China, which is surprising since it's the most populous nation in the world and also heavily into tech. This is because the NFTs we know (e.g. BAYC, CryptoPunks) are technically illegal — China doesn't support decentralized blockchains like Ethereum.

This "China Digital Asset Trading Platform" is the first official NFT marketplace sponsored and backed by the Chinese government.

In the past, domestic entities have launched their own "NFTs" on centralized platforms, often with severe limitations. Tencent's NFT platform Magic Core doesn't support secondary transactions, only primary sales. Alipay's NFT platform Jingtan requires users to hold their NFTs for 6 months before they can be transferred. It's hard to consider these as true "NFTs".

☘️ In the weeds: The state-backed NFT platform was supposed to be launched on Jan 1 this year and will include trading of IP rights, copyrights, and digital collections. More importantly, it enables secondary trading of digital assets, which was a legal grey area in the past. The NFTs will run on a centralized blockchain called the China Cultural Protection Chain.

We took a look at the main website (translated) at www.cdex.cn today and it's pretty much still a landing page. There's a countdown timer for registration, currently slated to open on Jan 7 at 3pm China Standard Time.

🤑 Why it matters: Regulations around crypto in China change very quickly. It's no wonder that "China bans crypto...again" has become a meme. This move follows China's experimentation with CBDCs and signals a positive change in China's stance towards NFTs and digital collectibles. Is this a recognition that the technology has economic and innovative potential, especially as other countries like India are embracing it? 

There is still a way to go before we see any true China NFTs but it could happen faster than we think.

Today's Most Interesting Tweets

🐥 The Trap of AAA Web3 Games

🐥 Parallel Pack Drop VI on 14 Jan

🐥  Is Lebron James a Clone X fan?

🐥 NFT Inspect shuts down

🐥 Art Blocks enables allowlists for new collections

🐥 Mutant Hounds slated for Jan 11

🐥 NFT founder rugs after gambling away all investors' funds

That's it for today folks, see you tomorrow. If you want more, follow us on Twitter (@the_metadata).  And if you aren't already a subscriber, join us now to get all the daily alpha you need.

Disclaimer: This newsletter is for educational purposes only. None of this is financial or investment advice. It is not a solicitation to buy or sell any assets. Please do your own research