NFT is reportedly becoming more and more popular in local China, with insights from reports revealed the number of digital collectible platforms witnessed a 5x surge to more than 500. 

Specifically, the sharp incline regarding the figure of NFT platforms – going from just above 100 in February this year – reportedly took place at the time the hype and popularity of the digital collectibles is on the rise across the nation. 

High-profile tech heavyweights including Tencent and Alibaba have expressed their interest for the developing sphere and have submitted filings for numerous trademark patents.

The surge in interest for digital collectibles throughout China still happens regardless of the local governments warning against it. These authority agencies believe the Chinese NFT market is full of speculations with a concentration on the secondary market, where risks are clearly visible to harm investors.

NFTs also serve as an alternative measure for individuals as a gateway to express themselves in a digital manner, during the strict lockdowns caused by the global health crisis in China. Shanghai residents listed hundreds of NFTs on Opensea in May at the peak of the government lockdown.

Because of regulatory supervision insufficiency, people and establishments keeps on interacting with digital collectibles using a cautionary approach, to minimize any direct conflict with authorities. Recently, Alibaba introduced a new NFT service and then promptly erased all mentions of it online.

Alibaba-affiliated firms like Ant Group and Tencent Holdings have carried out initiatives to steer clear from any potential regulatory pushback in the past via branding their listed NFTs as “digital collectibles.” They are also available across private blockchains and are open for trading and buying via Chinese fiat currency.