Shanghai Data Exchange launches untradeable NFTs
Less than 48 hours after starting to trade in digital assets, the Shanghai Data Exchange has moved to launch blockchain-based digital assets. However, there are some limitations as the exchange will not allow secondary trading.
The Shanghai Data Exchange was established in November 2021. The state-owned institution offers trading data products to companies. Its move to launch digital collectibles comes despite several warnings from the Chinese government against the NFT hype.
The Shanghai Data Exchange is issuing digital assets in conjunction with Chinese footwear maker Warrior and Bilibili, a video streaming platform popular among Chinese youths. All the assets are based on the blockchain known as High Energy Chain, which was developed by Bilibili.
Bilibili has remained silent on the subject but has not denied that the digital assets will take the form of NFTs.
The assets in question are distributed for free, and according to the digital asset’s promotion page, each asset has an exchange value and can be swapped for a pair of physical shoes at any time.
China’s anti-crypto and NFT stance have been quite intense, forcing Chinese tech giant Tencent to halt all sales a year after its launch. Nevertheless, owners of existing collectibles are still allowed to hold, display, or request a refund for their possessions.
Most Chinese tech giants have had to tread carefully with their NFT platforms within mainland China, with most domestic platforms avoiding the wording NFT, referring to them as "digital collectibles" instead in a bid to distance themselves from cryptocurrencies, which are prohibited in China.
Interestingly, Shanghai and Beijing see the potential in NFTs and plan to utilize them in boosting the economy, as China’s economy has suffered a bit due to the country’s zero-Covid policy.