Back

E-commerce Giant Alibaba Launches NFT Marketplace

17.08.2021

During the past few months, the inevitable move by the Chinese government to reduce the mining of cryptocurrency has been an interesting test on the mining resources of major digital assets.

Chinese Bitcoin miners have represented the largest mining resource in the world for quite some time, some of which had huge rigs and were taking advantage of cheap, and sometimes free electricity to gain a substantial advantage over miners in other nations.

That is until the state clamped down on mining and put a huge number of miners out of action, resulting in mining rigs being either dumped or sold for parts very cheaply on the used market.

Despite this, the theory that mining may become easier and prices and supply may be affected has pretty much amounted to nothing, and there has been hardly a dent made in the Bitcoin supply and demand cycle, nor a blip in the blockchain development projects that are currently in place around the world.

Quite simply, Bitcoin, and other major cryptocurrencies, are mature and their technological topography is stable.

That is perhaps why, contrary to the moves by the Chinese government against miners and the Chinese government’s clear distaste for the peer-to-peer, individual use of cryptocurrencies as a technological means of bypassing the great firewall and the all-seeing-eye  of the government, massive Chinese companies are now going into blockchain-based decentralized finance (DeFi) initiatives for commercial purposes.

Today, Alibaba, the Chinese e-commerce giant has launched a non-fungible token (NFT) marketplace on its auction platform.

The South China Morning Post (SCMP) which is owned by Alibaba reported today that Alibaba expects artists, musicians, writers and game developers to sell NFTs of their work on the “Blockchain Digital Copyright and Asset-Trade” marketplace which it intends to launch in September.

Trading volumes on NFT platform OpenSea have soared in recent weeks, as more tokens are sold and their worth accelerates, therefore this is coming at an opportune time, with items listed on Alibaba Auction including a painting of a local Sichuan landmark, as well as art based on major franchises such as “Star Wars”, the video game “Wasteland 2”, and “Grand Theft Auto”, according to SCMP journalist Josh Ye.

This may well be a digitalization or tokenization of art, but it represents far more of a milestone in the commercial use case for DeFi than just being able to sell art on a digital token.

This breakthrough, which flies in the face of the Chinese government’s crackdown on cryptocurrency mining shows that business uses for cryptocurrency and its related technology are of great value and are not so frowned upon by the Chinese government.

Alibaba is a massive force in the e-commerce world globally. Who knows what this pioneering effort may lead to in terms of other major e-commerce platforms adopting a similar stance.

Business accounts for cryptocurrency trading are therefore very important, and in particular business accounts that offer proper facilities to be able to conduct trade with customers, keep assets safe and that do not limit deposits and withdrawals are vital.

CoinMetro should be the go-to partner for business activity in cryptocurrency.

Signing up as a company is very easy and business customers of CoinMetro benefit from unlimited trading with no deposit or withdrawal limits.

This means that as the e-commerce world opens up further, and giants such as Alibaba begin to interact with the art world and the game development sector, many new start ups may come into being which rely solely on digital assets and blockchain technology to conduct their business.

CoinMetro is a regulated exchange which offers business accounts that will help power any business as this revolution takes place.

Business customers also can participate in staking and other passive income products via CoinMetro’s Treasury facilities, meaning that business customers get paid for holding their account with CoinMetro, and are able to monetize the account itself as well as the blockchain-related products being sold via e-commerce businesses.

NFTs have slowly been gaining traction in China, despite the mining crackdown by the Communist Party of China. The government appears to be more receptive to blockchain products, with even a view toward incorporating leeway for blockchain projects into national economic plans.

Alibaba is a big one. This should set the tone, and if it is beginning with one of China’s giants, we can look forward to this coming to other such e-commerce and business applications across the rest of the world, especially now that the US is looking toward finalizing a taxation and regulation framework for cryptocurrency and blockchain related projects.