China’s NFT-related complaints to increase by 30,000% in 2022

by James · March 14, 2023

The official complaints related to non-fungible token (NFT) fraud, problems and price manipulations the Chinese government received increased by 30,000% in 2022, according to Forkast News.

Chinese regulators revealed they received 59,700 complaints during the year, compared to 198 in 2021, the report said. According to the regulators, most complaints are about non-receipt of purchased goods, failed refunds, price manipulation and high transaction fees.

China on NFTs

China is known for its anti-crypto stance. However, NFTs remain a gray area for the country.

In December 2022, China announced that it would launch its first fully regulated NFT trading marketplace on the first day of 2023. The platform will be known as the “China Digital Asset Trading Platform” and will provide institutions and individuals with protection and monitoring rights regarding NFTs.

In the same month, China’s capital Shanghai also launched a $149 million metaverse fund. The purpose of the fund is to develop the metaverse industry in the country and increase competition in this field. Seven different provinces have already announced their roadmaps to become the metaverse hub of the country.

NFTs in 2022

Although 2022 was the coldest winter in crypto history, NFTs remained almost completely resistant to price movements.

Throughout the year, the NFT market recorded $55.5 billion in sales – a 175% increase from the previous year’s $20.2 billion. Compared to $142 million recorded in 2022, the size of the NFT market in 2022 reflects an increase of 38,903%.

CryptoSlate data revealed that the total NFT market value recorded a slight decline in 2022 due to the bear market and fell to $85 million. Regardless, the $85 million in 2022 reflects an 11,644% increase from the $10 billion recorded in 2020.

A DappRadar report showed that the NFT market returned to its pre-winter levels in February. According to the data, the NFT market trading volume exceeded $2 billion in February, a 117% increase from January’s $956 million.

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