Digital collections need better regulation

2022-08-07 0 By

In recent years, digital collections known as “NFT” (non-homogeneous tokens) have exploded around the world.In practice, it is not enough to treat digital collections only as cultural and creative products traded online and supervised by market regulators and intellectual property authorities.As a derivative of fintech, digital collections have the attributes of commodity, currency and securities, etc. Their supervision involves multiple departments, so it is urgent to establish a joint supervision mechanism.Recently, missing old Summer Palace 12 animal head of sheep head “appear” auction, hammer price 8141 yuan.That’s certainly not a price to pay for a real artifact — in fact, what consumers are paying for is a virtual GIF with a globally unique code.According to the plan, all 12 virtual giFs of the animal heads will be featured in the auction.In recent years, such digital collections, known as “NFT” (non-homogeneous tokens), have exploded around the world.Last year, a “NFT” by the artist Beeple sold for a whopping $69.34m at Christie’s, with a starting bid of just $100.In China, there are both Internet platform giants entering the field, and a large number of start-up companies building platforms, attracting numerous individual creators, artists, museums, and brands of all sizes to release digital collections.At present, some platforms adopt the sale mode of direct purchase price combined with auction price, but this price difference may not be able to pick up the leak, but also may leave a loophole of market disorder.Take the Old Summer Palace Animal Head series as an example. There are 10,000 copies of each of the 12 animal heads in this issue, of which 9982 can be purchased directly with 29.9 yuan and not limited. After 90 days, they can be transferred through wechat mini program.This is tricky, because the high price of this one will serve as a reference price for the previous low “same style” transfer.What’s more, will it go on to the next issue?The personage inside course of study thinks, do not rule out to have buyer early days store goods in large quantities, fry next high auction price, so that later period high price “transfer”.People chase after works of art, one is for the appreciation value of beauty, the other is the collection value brought by scarcity.Whether a digital collection is worth appreciating as much as the price varies from person to person, but judging from the high demand for the sale, most of the buyers mainly want to make a profit through the sale.However, digital collections, with their low production and reproduction costs and questionable scarcity, are likely to fail to support expectations of appreciation and dash dreams of sudden riches.Domestic consumers also have a layer of risk: “NFT” in foreign nature is token, generally established on the public chain, the value of the work is recognized.While domestic institutions insist they only do digital art, trading platforms are mostly based on affiliate chains, and some startups have built their own platforms and blockchains.So many platforms and alliance chains mean that the price system of digital collections is not firm and the risk of speculation is high.Some platforms ban secondary resale, but the ban is not effective, private transactions are still frequent, recently wechat has banned a number of digital collections platform public accounts suspected of illegal speculation or secondary transactions.There are still some platforms directly release and resell and charge high commission, once the platform is closed, consumers who receive orders at high prices will be afraid of heavy losses.In practice, it is not enough to treat digital collections only as cultural and creative products traded online and supervised by market regulators and intellectual property authorities.As a derivative of fintech, digital collections have the attributes of commodity, currency and securities, etc. Their supervision involves multiple departments, so it is urgent to establish a joint supervision mechanism.It is reported that the U.S. Securities and Exchange Commission is investigating NFT for illegal fund-raising, and the U.S. Treasury Department has warned that NFT could become a money-laundering tool.Some domestic experts suggest the introduction of “regulatory sandbox”, select platforms to communicate closely with regulatory authorities, report in advance the operation mechanism and consumer rights and interests protection measures, in a certain period of time, within a certain range of trial operation.That’s one way of thinking about it.Web3.0, with blockchain, meta-universe and NFT as its core, is regarded as the next stage of the Internet.Compared with the meta-universe, digital collections are more impressive and are the fastest application scenarios of blockchain.In order to polish and popularize the new technology, for China to take the lead in opening the door to the new world, it is necessary.For this emerging thing, we need both tolerance and prudence, but also need to pay close attention to find a key to prudence.Before the regulatory mechanism is clear, it is suggested that consumers view calmly and participate rationally.(SheYing)