Alibaba, TikTok join the craze as China’s NFT Market sees explosive growth
The NFT Craze has been reaching new levels across the world, as many big companies and players jump into the scene. Investment firm Sino Global Capital believes the sector is “growing rapidly”, predominantly in China. Companies based in the Asian Giant, such as Alibaba, visual content media agency Visual China Group (VSG), NetEase, a major internet technology company, and ByteDance, the parent company of TikTok, already announced a stake in the NFT market.
This has coincided with an equal amount of participation from western companies, and individuals with a high net worth. The payment giant VISA recently purchased one of the NFTs that comprised popular collection CryptoPunks. This could lead to another wave of mass adoption and drive a new stage in the NFT Craze.
As Sino Global Capital claimed, there are key events that suggest this possibility. The first is the acquisition of CryptoPunks from founders of major companies, such as Cai Wensheng, founder of Meitu, Feng Bo, founder of Dragonfly Capital, and others. These individuals purchased CryptoPunks 7252 and 8236 for 1600 ETH and 125 ETH, respectively. The second is the participation of retail investors in the market. The NFT Craze has been partially driven by small investors, looking to flip their assets for a quick gain, as well as by millennial investors more akin to spending their money in digital assets as a form of luxury goods.
This could see another surge as platforms worldwide are trying to leverage the fractionalization of popular NFT collections to drive new users. In China, as Sino Global Capital said, a social network called People’s Punk has been launched with the help of 173 users. In that way, many people can co-own a CryptoPunk.
NFT Collections And The New Initiatives That Could Boost Adoption
Fractionalized NFTs are worth millions of dollars at the time of writing. People are looking for new ways to interact with these assets, as seen with the initiative described above. Others could serve further to propel the NFT Market into its next adoption phase.
The “CryptoPunk Couple” project, an experiment created to “make Punks into a couple”, has been raising a lot of capital from retail investors. In a short time, the project has raised over 400 ETH.
Former CEO of BitMEX Arthur Hayes, recently noted in a post that the NFT market could help improve the art industry by reducing transactions costs, cutting down intermediaries, and reaching wider audiences. In addition, Hayes claimed that people also jump into these assets to gain social status and access to the “exclusive communities” which only the NFT owner can access.
In any case, the NFT revolution seems at its early stage as people still debate if the market is in a bubble or if NFTs are the future of entertainment, gaming, movies, and other mediums to create and distribute content.