A recent report quoted Tencent insiders as saying that Tencent is planning to abolish the "Phantom Core" business this week. Although Tencent has not officially announced this news, the Phantom Core business has basically stagnated since June. Master calligraphy motto screen digital masterpiece" series and wooden board watermark "Shizhuzhai Painting Book" series, both digital collections are not sold out, Magic Core has locked them and closed the transaction. It is reported that a total of 20,245 pieces of "Master Hongyi's Calligraphy and Maxim Screen Digital Masterpieces" were unsalable, and a total of 8,206 pieces of the "Shizhuzhai Painting Manual" series were unsalable.
And on July 8th, the 10 works of the latest digital collection "Onion Tosu" series released by Magic Core have not been sold out.
At present, the latest news of the magic core official account also stays on June 27
Why is the phantom core turned off? There are two reasons:
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Regulatory pressure : The country has already stipulated the "Notice on Further Preventing and Dealing with the Risk of Virtual Currency Transaction Hype" to further prevent and deal with the risk of virtual currency transaction speculation, and China Internet Finance Association, China Banking Association, and China Securities Association issued "On Prevention and Control" NFT-related Financial Risks Initiative", Magic Core, as a public platform for Tencent to test the NFT market, changed its name to digital collections due to regulatory concerns, but it can’t stand because some people use Magic Core’s scarce digital collections for financial transactions in the secondary market. In particular, most of them are hot-blooded teenagers who have just entered the market. Using the cover of the platform to make value investments can easily lead to secondary financial risks. Tencent, which does not touch the red line and does not violate the law, provides a good social platform and values as far as possible away from the black hole of policy uncertainty and illegal financial transactions. Especially as a big head platform, it should respond to the policy and guide the positive direction.
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Reduce costs and increase efficiency . Magic Core was launched in August 2021 for less than a year. As one of the top platforms for digital collections, Magic Core is limited by the constraints of the secondary market, and the overall economic benefits are limited. The volume of domestic digital collections is also comparable to that of foreign NFTs. The transaction volume is not the same. The recent personnel changes of Magic Core also confirmed that Tencent has adopted cost control measures due to the decline in net profit for three consecutive quarters. Magic Core is not a core business as a water testing platform. This abolition may reduce costs and increase effective desperation
If the magic core is really closed, can the digital collection be transferred or platform compensation?
According to Magic Core’s regulations at the software service level: “Tencent may update or adjust the content of this software and/or this service as needed, or even suspend or terminate the provision of all or part of the services to you. The above actions are not considered a breach of contract by Tencent. , you have no right to ask Tencent to take any responsibility."
As of now, Tencent has not announced how to deal with the digital collections that have been purchased in the future.
The centralized platform has the final right of interpretation and the priority of assets . In this regard, although domestic digital collections and foreign NFTs are both developed and applied based on blockchain, there are many differences in the definition of blockchain.
Let's take a look at which blockchains are used by several major digital collection platforms in China:
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Alibaba's whale probe, the bottom layer is the ant alliance chain
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Ali's Ali Auction, the bottom layer is a new version of the chain and tree graph chain
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Tencent's magic core, the bottom layer is Zhixin Chain and Tencent Blockchain
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Baidu's Baidu super chain, the bottom layer is Baidu super chain
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Jingdong's Lingxi, the bottom layer is Zhizhen Chain
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NetEase's NetEase Planet, the bottom layer is the NetEase blockchain.
These leading platforms are all blockchain applications developed based on their own needs. Assets between platforms cannot be traded and transferred across chains. For example, digital collections of Magic Core cannot be traded on Whale Explorer. Such areas The block chain has a name: alliance chain
The foreign NFT market is mostly based on public chains, such as Ethereum chain, Poylgon, Solana, etc. All encryption enthusiasts around the world can buy and sell in this market, and there are no financial restrictions on the primary and secondary markets, and they are responsible for their own profits and losses.
Then there is a comparison here. What are the differences between domestic digital collections and foreign NFTs?
Foreign NFT stands for non-homogeneous token, which is a unique digital asset (art, music or game asset), you can think of it as a cryptocurrency token.
Domestic digital collections can be understood as Chinese characteristics and are essentially regulated NFTs, which are digitized specific works, artworks and commodities that are uniquely identified using blockchain technology.
There are both similarities and differences between the two:
Commonality:
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Uniqueness: Both have their own independent numbers. Each is unique and complete and not directly interchangeable with any other asset by identity, value and/or utility.
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Scarcity: Both are limited editions. This can not only ensure the long-term development of encrypted assets, but also avoid the hidden danger of short supply.
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Traceable: Both can be traced back to the issuer. There are transaction records on the chain, from creation to transfer, which can prove the authenticity and prevent fraud.
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Spectacular: Whether it exists or not, at least sometimes it can be regarded as a spectacle for some people.
difference:
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Blockchains are different. NFT works are issued based on decentralized public chains, such as Ethereum chain, Poylgon, Solana, etc., allowing cross-chain transactions and reselling to any platform. Its value is determined by the market, which also makes NFT easy to be used. characteristic of hype. The underlying construction of various domestic platforms is basically established under their respective alliance chains. That is to say, digital collections cast on different platforms in China are currently unable to achieve cross-platform circulation. For example, digital collections purchased by Whale Explorer cannot be shared on the Magic Core platform.
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NFT requires community consensus and value recognition. The publisher operates the work, which can be understood as speculation. Based on its limited quantity, its value will be steadily increased, or skyrocketed. However, digital collections are different. Under the current regulatory environment, hype is prohibited for digital collections. Domestic digital collections more reflect the value of commodities.
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NFT is anonymous, and domestic purchases of digital collections require a real-name account.
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Digital collections cannot be purchased with virtual currency, but can only be purchased with RMB or digital RMB, while NFT can be purchased with virtual currencies such as ETH, USDT, and SOL.
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Digital collections cannot be freely circulated and traded in China for the time being. Strict restrictions on secondary market transactions can reduce speculation and hype. And NFT can be purchased and circulated in the hands of global users without restrictions.
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Ownership is different. After purchasing NFT, the ownership belongs to the buyer, and secondary processing and commercial activities can be carried out. However, the purchase of digital collections does not obtain the copyright, and there is almost no right to use it for any commercial activities.
summary
If the magic core is really closed, is it a clear response from the leading domestic platform to the country’s possible supervision of digital collection transactions? This should be a big blow to the development of the current domestic digital collection market. If other platforms respond, digital The collection market will enter a long period of market freezing.
All financial behaviors should be carried out safely within national laws and regulations. As an emerging field, digital collections still have certain uncertainties and risks. Time will give the answer for what the future will be like.
" Declaration: This content is only for popular science learning and communication among NFT enthusiasts, and does not constitute investment opinions or suggestions. Please treat it rationally, establish correct concepts, and increase risk awareness. "