Chinese Tech Giants Ready Metaverse, NFT Moves Despite Regulatory Scrutiny

China Gaming Metaverse NFT Non-fungible tokens
Last updated:
Author
Author
Tim Alper
About Author

Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked...

Last updated:
Why Trust Cryptonews
Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews
Ad DisclosureWe believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships.
Source: iStock/maybefalse

 

China’s tech giants are hopeful of launching metaverse and non-fungible token (NFT) businesses despite suffering a torrid year at the hands of the country’s vehemently anti-crypto government. Heavy-hitters including JD.com and Alibaba have laid out plans that involve metaverse and NFTs, although regulations have forced them to make cosmetic name changes.

Under pressure from Beijing, which has shaved billions from their stock market worth by clipping their wings this year, tech firms have begun referring to NFTs using terms such as “digital collectibles.” They have also placed limits on secondary trading, and such items are traded on private blockchain networks, unlike NFTs elsewhere, which are usually traded on Ethereum (ETH) and other well-known protocols.

However, instead of sitting by helplessly and watching as their American, Japanese, South Korean, and European rivals forge ahead with their own metaverse and NFT projects, it appears that Alibaba and the like that even the limited progress they are allowed to make under Beijing’s tight controls is better than sitting still.

Per a report from the Global Times, as well as Next Money and the South China Morning Post, the firms have sprung into action, building on their existing NFT businesses in many cases.

As such, Alibaba has rolled out a new subsidiary named Yuanjing Shengsheng, arming it with USD 1.58m in capital backing. “Sources familiar with the matter” (identified by the South China Morning Post as Alibaba employees) confirmed that the new subsidiary would be metaverse-orientated, but did not expand any further on the matter.

Other players may seek to use international avenues to push ahead with their own expansion plans.

As a gaming giant with huge entertainment industry operations, Tencent will likely feel that it simply cannot afford to be left behind in the metaverse race. The firm’s domestic NFT (or “digital collectibles”) business line is already open, but more inclusive metaverse plans could well be on the horizon. Chinese media outlets pointed out the fact that Epic Games, an American gaming firm it owns a 40% stake in, is pushing ahead with its own metaverse plans – quite possibly with Tencent’s backing.

Tencent also owns minority stakes in a whole host of other gaming firms. In October, the Korea Times reported that the Chinese giant had made an undisclosed investment in South Korea’s NXN, following an earlier investment in the Japanese-South Korean chat app operator Line’s Line Games.

The Tencent CEO “Pony” Ma Huateng was quoted as telling investors:

“The metaverse is an exciting topic. I believe Tencent has great technologies and capabilities to explore and develop the metaverse. For instance, we have rich experience in sectors like gaming, social media and AI.”

Meanwhile, the e-commerce behemoth JD.com has released its very first NFTs (appropriately naming them as new “digital collections,” however) – and will have been pleased with their reception. With very little fanfare, the firm listed five series of the JOY Dog character-themed tokens on its Lingxi platform via its fintech and blockchain technology subsidiary JD Technology.

The latter firm unveiled 2,000 pieces in each series, pricing them at just over USD 1.50 each. The whole lot was sold out by Monday, media outlets reported.

The search engine Baidu, meanwhile, has been looking to up its involvement in “smart hardware” – earmarked as a key cornerstone in metaverse developments – by “heavily” backing its Nasdaq-listed iQIYI video streaming subsidiary’s efforts on this front.

The latter may be forced to revise its plans after Chinastarmarket reported that the firm had been forced to execute “substantial” staff layoffs, and raise subscription fees – a sign that all may not be well

Another Chinese gaming powerhouse, NetEase (which also has stakes in a number of overseas gaming firms) has “filed dozens of trademark applications related to the metaverse,” the Global Times remarked.

Regardless, the firms will take careful note of Beijing’s attitude to both NFTs and metaverse developments. The Chinese Communist Party (CCP) is committed to rolling out a digital yuan early next year and will not take kindly to anything in the digital space that threatens to upstage its new token. It considers crypto as a “tool of speculation.”

CCP-endorsed media outlets have already spoken about a “huge bubble” swelling up in NFT markets and have suggested more NFT-related regulations may be needed in China.
____
Learn more: 
Meta Spends USD 60M On Rights, Trademarks To Secure Its New Name
How to Buy Virtual Land in the Metaverse: A Beginner’s Guide

Investor Purchases 330 Adidas NFTs Using Smart Contract – 328 More Than the Cap
Bitwise, Nexo Add to Financial Products for Rich NFT Investors

20% of Bitcoin Hashrate Is ‘Still in Mainland China,’ Report Claims
Chinese Banks ‘Educate’ the Public on the Pitfalls of Crypto

More Articles

Price Analysis
Trump Wants Bitcoin at $150,000 – Will His Return Spark the Next Big Rally?
Arslan Butt
Arslan Butt
2024-12-11 17:38:09
Bitcoin News
MicroStrategy’s Nasdaq 100 Status Tied to ICB Classification: Bloomberg Intelligence
Hongji Feng
Hongji Feng
2024-12-11 17:06:40
Crypto News in numbers
editors
Authors List + 66 More
2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors