South China Morning Post

Communist Youth League latest to embrace NFT craze

- Coco Feng coco.feng@scmp.com

The Communist Youth League, a cradle for generation­s of mainland leaders, has embraced non-fungible tokens (NFTs) to mark its 100th anniversar­y, issuing 54,000 free “digital collectibl­es” yesterday.

They featured the league’s official mascot Tuanbao, a white, round animated face with two communist stars on the head.

The tokens, built on a blockchain developed by Hangzhou Shunwang Technology, were all taken up within an hour. As with other digital collectibl­es in the mainland’s closed NFT market, theys are not allowed to be traded.

The issuance came on Youth Day, celebrated annually on May 4 as a tribute to student demonstrat­ions in 1919 against the Treaty of Versailles after the first world war, when Chinese territory held by the Germans was given to Japan.

Separately, Peking University issued 20,000 digital collectibl­es in the form of alumni cards to commemorat­e May 4 as well as the school’s 124th anniversar­y.

NFTs, digital assets built on the blockchain, are attracting the attention of a rising number of state-backed organisati­ons as well as privately held technology firms.

The official Xinhua News Agency jumped on the bandwagon last December when it gave away more than 100,000 digital collectibl­es featuring news photos from “historical moments in 2021”.

Ant Group, the fintech affiliate of Alibaba Group Holding, and social media and gaming giant Tencent Holdings were the first tech giants to embrace NFTs, launching dozens of products since last summer. JD.com and Baidu followed with their own digital collectibl­es. Alibaba owns the Post.

However, the companies have been careful to discourage potential speculatio­n. In March, Tencent’s WeChat app froze multiple accounts that marketed digital collectibl­es. A WeChat representa­tive said at the time the platform had enforced “regulation and rectificat­ion on public accounts and mini programs that speculate on or resell digital collectibl­es”.

Around the same time, Ant Group’s digital collectibl­e platform Topnod punished 56 accounts for participat­ing in the resale of digital collectibl­es for profit. In January, more than 300 accounts were punished for using plug-ins and scripts to snap up digital collectibl­es.

Last month, three government-managed financial associatio­ns jointly released guidelines to prohibit the use of NFTs in the issuance of securities, insurance, loans and precious metals.

 ?? Photo: Handout ?? The Communist Youth League’s anniversar­y NFT.
Photo: Handout The Communist Youth League’s anniversar­y NFT.

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