China Promises to Crack Down on "Pseudo-Innovation" in NFT
Chinese prosecutors warn of risks in the NFT market, citing the securitization of NFTs and inflation of prices through marketing methods. They highlight the potential for illegal pyramid schemes to emerge from marketing models such as rewards and dynamic rights. The proposed response includes cracking down on criminal activities, emphasizing punishment and governance, and investing in risk research. China maintains its anti-crypto stance and remains cautious of artificial intelligence. Prosecutors aim to distinguish true innovation from pseudo-innovation and protect the former. They emphasize the need for comprehensive governance and a crackdown on pseudo-innovation in the NFT market.
