Trends of NFT regulatory policies: the development path of NFT in China will follow a business model different from that of overseas markets, explore a monetized development path from the perspective of copyright protection and asset confirmation, and explore and establish Chinese rules and standards in the issuance, sales and circulation of digital collections. (1) 2022.1.4 the digital RMB (pilot version) app was launched, and the pilot cities were expanded to ten cities such as Shenzhen and Shanghai. The application scenarios covered Internet platforms such as jd.com, meituan and tmall supermarket and the Beijing Winter Olympics. The landing of digital RMB entered a new stage. We believe that the promotion of digital RMB will promote the formulation of trading rules for digital collections. The RMB price will weaken the financial attribute of NFT. Trading digital collections through digital RMB will help to prevent and supervise speculation, money laundering and other acts. (2) Xinhua news agency, China Central Television Network and other official media and the legal media of the CSRC, Shanghai Securities News, have successively entered the digital collection, affirmed the ownership and collection value of the digital collection, and strengthened the confidence of the digital collection. (3) Tencent, together with ant group, ICT academy and other industry, University and research institutions, jointly proposed the international standard project of blockchain based digital collection service technology framework, which was approved at the plenary meeting of the 16th research group of the International Telecommunication Union, which helps to promote the global recognition of the digital collection technology framework and improve its ability of value storage, value discovery and value circulation, Promote its standardized application. (4) There is much overlap between the business nature and trading objects of the cultural exchange and the digital collection trading platform. The trading rules of the secondary market of digital collections may be formulated on the basis of the trading rules of the cultural exchange. We believe that the digital collection trading platform established by the cultural exchange with the official background of the government is easier to get regulatory support, and will lead the exploration of the formulation of trading rules and standards in the secondary market of digital collections. Listed companies with business connections with the digital collection field of the cultural exchange are expected to benefit. They reiterate their focus on Three’S Company Media Group Co.Ltd(605168) (sign a strategic cooperation framework agreement with beiwen center on January 10, 2022 to jointly build a digital cultural and creative product trading platform). Other affiliated enterprises include: Xinhuanetco.Ltd(603888) (cooperate with Shanghai Cultural Exchange on December 22, 2021 to build a national digital cultural and creative normative governance ecological matrix) Chengdu B-Ray Media Co.Ltd(600880) (Chengdu culture and culture exchange, with 45% shares, released the country’s first digital cultural property rights trading platform), Zhewen Interactive Group Co.Ltd(600986) (reached cooperation with Zhejiang culture and culture exchange on January 4, 2022 to build NFT art trading community), Zhejiang Huamei Holding Co.Ltd(000607) (with 40% shares in Hangzhou culture and culture exchange), Jiangsu Holly Corporation(600128) (with 26% indirect shares in Jiangsu culture and culture exchange).
Overseas NFT trends: in January 2022, the overseas NFT market grew rapidly, and the decentralized NFT trading platform looksrare was launched, resulting in drastic changes in the competition pattern of the overseas NFT trading market. (1) In January 2022, the transaction volume of opensea was US $4.491 billion (mom + 102%), the transaction volume increased to 2816300 times (mom + 95%), and there were 46800 daily transaction users (mom + 86%), all reaching a record high. (2) On January 10, looksrare, a decentralized NFT trading platform, went online and launched a battle for users and transactions against opensea through airdrop or rewarding the original governance token looks. In January, the trading volume of looksrare reached US $11.102 billion, accounting for about 65% of the global mainstream NFT trading market, but its trading volume is less than 2% of that of opensea, and more than 90% of its trading volume comes from the round-trip trading of high value and zero royalty NFT. (3) From the perspective of the scale of active trading users, opensea still has significant advantages, with 552200 trading users in the past 30 days (2022.1.20-2022.2.18). Although the number of looksrare trading users (28900 people) is less than that of opensea, it has been significantly higher than that of superrare (589 people), rarible (4567 people) and foundation (3222 people).
NFT trends from January to February 2022: the double happiness of the Spring Festival and the Winter Olympics has accelerated the entry of digital collections into the public view, and the influence of digital collections has been expanding. (1) Spring Festival: Alipay’s new collection of digital collections, the CCTV network and other official media, and the mainstream platforms such as whale, magic, Yuan vision and so on, have launched numerous tiger elements and Spring Festival theme collection. (2) Winter Olympics and other sports events: the Winter Olympics digital collection helps promote ice and snow sports. Yili released the “champion shining 2022” digital collection, baidu super chain digital collection launched the “ice and snow color series”, and Taobao 88vip and Hongdong digital collection platform launched Winter Olympics themed activities. International Olympic Committee authorized Bing dwen dwen blind box on 2.12 Flow trading market nWayPlay, offering limited 500, each 99 US dollars. 2.6 the Chinese women’s football team won the 2022 Asian Cup, and the commemorative digital collection was released in China on the compliance NFT platform of the national blockchain bsn-ddc infrastructure. NBA and CBA released digital collections during the Spring Festival to celebrate the new year. (3) Important developments of Chinese giants and head platforms: whale exploration platform launched more than 100 digital collections during the Spring Festival, leading a new wave in China’s digital collection market. Magic core continued to strengthen the collaborative layout with Tencent Entertainment ecology. On January 25, it launched the “inhuman” winter limited edition digital blind box. During the Winter Olympic Games, it jointly issued winter Olympic themed digital collections with Yili, Zhixuan and other consumer brands for marketing. 1.21 Baidu super chain digital collection went online and released a variety of Spring Festival collections of the year of the tiger and digital collections of ice and snow sports. 1.19 Netease planet digital collection went online and released Netease cloud new year special digital collection. During the Spring Festival and Winter Olympics, five series of digital collections were launched on the meta vision platform, with a total distribution ranging from tens of thousands to hundreds of thousands. 2.14 yuan vision innovated for the first time and released “lovers in the railway station” by mapping digital collections to physical collections, with a limit of 999 copies and 520 yuan each.
Investment suggestion: it is suggested to pay attention to Three’S Company Media Group Co.Ltd(605168) (integrated marketing has brought large increment to new customers of China Resources and customers in the automotive industry in 21 years, and it is expected to be launched with the NFT platform of beiwen center in April) Visual China Group Co.Ltd(000681) (the overseas NFT platform is expected to go online in March, and the Japanese yen visual platform will sell “lovers of the railway station” by mapping the digital collection to the physical collection on February 14, which is optimistic about the transaction flexibility brought by the overseas NFT platform relying on Corbis picture library and 500px photographer community), etc.
Risk factors: uncertainty of regulatory policies, failure of blockchain infrastructure development to meet expectations, and widespread speculative risks.
