State media in China warn of NFT sector bubble

Publications controlled by the ruling Communist Party of China, Securities Times and People’s Daily, warned citizens against buying non-fungible tokens (NFTs) due to a potential bubble in the sector. The report comes via SCMP.

The statement says that most NFT buyers are focused solely on financial speculation rather than the visual qualities of the token.

“As soon as the enthusiasm wanes, and market hype slackens, the value of these odd NFTs will diminish significantly,” wrote reporter Wang Junhui.

In March, digital artist Mike Winkelmann, known by the alias Beeple, who sold an NFT for almost $70 million, called the market situation a bubble.

Earlier in September, Anthony Pompliano, co-founder of Morgan Creek Digital, acknowledged that he had underestimated the NFT sector.

Earlier, Sam Bankman-Fried, head of the crypto-derivatives exchange FTX expressed optimism and caution about the prospects for the development of non-fungible tokens.

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