Ant Group Says NFTs Are Not Cryptocurrencies After Digital Artwork Sells Out

Ant Group highlighted the differences between NFTs and cryptocurrency after its successful sales of digital art.

AccessTimeIconJun 23, 2021 at 10:31 p.m. UTC
Updated May 9, 2023 at 3:20 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Ant Group’s payment platform Alipay sold out 16,000 copies of non-NFT-backed app images within hours on Wednesday. 

The sale, however, prompted the Jack Ma-controlled Ant Group to clarify that non-fungible tokens are not cryptocurrencies, Reuters reported. Ant’s swift response appears to be related to China’s intensifying crackdowns on crypto trading and mining. 

  • Neil Tan: Hong Kong’s Crypto Push
    30:00
    Neil Tan: Hong Kong’s Crypto Push
  • Bitcoin Holds Steady After China Rate Cut
    01:26
    Bitcoin Holds Steady After China Rate Cut
  • China's Top Prosecution Agency Says NFTs Have Crypto-Like Attributes
    04:40
    China's Top Prosecution Agency Says NFTs Have Crypto-Like Attributes
  • China’s Blockchain Bet
    05:47
    China’s Blockchain Bet
  • Alipay and Dunhuang Research Academy jointly released two images based on AntChain, which is Ant’s enterprise blockchain, for the app’s payment page. Each image has 8,000 copies. 

    The two digital artworks appear to be inspired by murals in the Mogao caves in Gansu province of Northwestern China, which has been listed as a world heritage site by the United Nations Educational, Scientific and Cultural Organization (UNESCO). 

    The buyers do not own the copyrights of these two images. But the image will appear on their payment pages whenever they use Alipay. People were able to purchase the digital artworks by a combination of 9.9 yuan (or $1.52) and 10 Alipay reward points, which can be earned by its users from making purchases with the mobile app. 

    NFT art can be auctioned on Alipay, and Ant Group’s enterprise blockchain AntChain said it supports NFT products with its technology, according to the report. 

    Alipay’s adoption of NFTs could be significant because it provides Chinese buyers with a channel to pay for NFT artwork with the local fiat currency, the renminbi. The artwork on decentralized public chains such as Ethereum would have to be paid with native tokens. That could be difficult for Chinese investors since the country started cracking down on fiat-to-crypto trading in 2017. 

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.