Chinese businesses have begun a metaverse trademark war.

 Chinese businesses have begun a metaverse trademark war.

Companies like Tencent and Huawei are pursuing metaverse-related trademarks despite the Chinese central bank's suggestion to monitor the Metaverse and NFTs.

Despite the People's Bank of China's (PBOC) warning on metaverse and nonfungible tokens (NFTs) in November, thousands of metaverse-related trademark applications have been filed by Chinese enterprises.

Gou Wenjun, the PBOC's AML and Analysis Center Director, cautioned about the perils of digital assets at a summit in November. Virtual assets, according to Gou, can be utilised for unlawful financial operations because they have no physical basis. "Illegal fundraising, pyramid schemes, and fraud," according to Gou.

However, ignoring the PBOC’s warnings, Chinese companies rushed to register metaverse-related trademarks such as “metaverse satellite” and “metaverse exhibition.” According to the South China Morning Post, more than 1,360 Chinese companies submitted 8,534 trademark applications related to the metaverse by Sunday.

Most of the companies that applied for trademark registrations are tech firms. This includes big companies like Huawei and Hisense. The former applied to register “Meta OS” while the latter applied with several trademarks in various areas like social services, advertising and science. Gaming and tech giant Tencent also joined in, having registered almost a hundred metaverse-related trademark applications including “QQ Metaverse,” “QQ Music Metaverse” and “Kings Metaverse.”

Aside from the PBOC's warning, the Chinese Communist Party's official publication, People's Daily, also issued a warning regarding the Metaverse on December 9. People who buy digital assets should be aware that property sales within metaverses have a high risk of instability, according to the publication.

Many people were not surprised by the trademark applications because demand for NFTs is increasing. According to the NFT sales tracker Crypto Slam, NFT sales have totalled $580.7 million in the last seven days. NFT revenues are estimated to reach $17.7 billion in 2021, according to Cointelegraph Consulting's analysis.

 

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