China Cracks Down on NFTs & A Budget Omega
Tencent and Alibaba limit NFT transactions, and Swatch collabs with Omega
Cultured is a newsletter that gets readers up to speed on the most interesting things going on at the intersection of finance, art, collectibles, NFTs, and more. Cultured is produced by Otis, an alternative investment platform that was recently acquired by Public.com.
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Facing regulation, Chinese tech platforms go on the offensive against NFT fraud
Tencent and Alibaba are taking measures designed to restrict NFT sales on their platforms. The preemptive move comes amid an increasingly tense regulatory environment in China for tech companies.
Alibaba said it would report suspected money laundering and bot purchases on its sites to the authorities. WeChat, which is owned by Tencent, also banned several NFT projects on its platform. It said it planned to open a new category on the app for them.
The Chinese NFT market is already significantly more regulated than its Western counterpart. Buyers are required to register using their real names, buy in yuan instead of crypto, and are banned from reselling tokens for a profit.
Our Take: China may be a bellwether for the shape of future NFT regulations in the US and Europe.
While China has yet to formally regulate digital collectibles, the regulations put in place by platforms are clearly meant to appease the government and prevent further regulation. China tends to come down pretty hard on regulatory issues, especially if they see a potential bubble forming. The way Chinese tech companies respond may offer a framework for companies in the US and Europe who may face similar regulations in the future.
Watch collectors go wild for Swatch x Omega collab
Horologists and hypebeasts spent the weekend waiting in line at Swatch stores in the hopes of buying a Swatch version of the Omega Speedmaster. In London, the Swatch store had to close after just 30 minutes as the crowd outside turned chaotic.
The MoonSwatch is a new approach for Swatch Group, which owns both Omega and Swatch. It costs just $250, compared to more than $6,000 for a comparable Omega Speedmaster Professional, and uses ceramic and plastic parts instead of metal.
Importantly, this collab isn’t a limited edition. Swatch Group says it plans to continue producing the MoonSwatch, suggesting a new direction for the iconic brand.
Our Take: Swatch Group is joining the newly popular middle market.
We’ve seen luxury brands and auction houses get in on the middle market over the past few years. Swatch Group is lucky enough to own both a luxury brand (Omega) and a consumer brand (Swatch). With the rise of retail collectors interested in collecting affordable luxury products, the Swatch collab seems poised for a bright future.
✨ AROUND THE INTERNET
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