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The Shanghai Data Exchange has debuted blockchain-based digital assets without allowing secondary trading, a day after the exchange began digital asset trading on Wednesday.
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Fast facts
- The debut occurred despite the Chinese government’s consistent warnings against NFT hype, and as Shanghai’s local government hoped to use NFT to boost the economy.
- This batch of digital assets was jointly issued by Shanghai Data Exchange, Chinese footwear maker Warrior, and Bilibili, a video streaming platform popular among Chinese youth. These assets are based on the blockchain, High Energy Chain, developed by Bilibili.
- Bilibili did not comment on Forkast’s query about the digital asset but did not deny that it was an NFT. The assets are distributed for free, and each asset can be exchanged for a pair of physical shoes, according to the digital asset’s promotion page.
- Established in November 2021, the Shanghai Data Exchange is a state-owned institution that provides companies with trading data products.
- While China continues to criticize the hyped-up nature of NFTs and demands a stop to speculation, local governments in Shanghai and Beijing have proposed developing NFTs as a means to boost the economy, as China’s economy slows amid the country’s zero-Covid policy.
- In August, Chinese tech giant Tencent halted further sales of NFT and allowed buyers to refund the items they had already purchased. An insider attributed it to concerns about regulatory crackdowns.
See related article: Beijing, Hengqin ramp up metaverse amid struggling economy