The digital collectibles market in China is evolving rapidly, with major platforms quietly expanding into public blockchain-based NFTs despite regulatory scrutiny. One of the most notable developments has emerged on Alibaba Auction, a prominent section within the Taobao app, where NFT artworks backed by public blockchains have recently sold for over 10,000 yuan—sparking renewed interest in blockchain-powered digital ownership.
This shift marks a significant departure from earlier strategies adopted by Chinese tech giants, which distanced themselves from the term "NFT" amid tightening regulations around cryptocurrencies. Today, Alibaba Auction’s “Digital Collectibles” zone not only hosts items but also supports assets built on public chains like Conflux, signaling a nuanced but strategic move toward decentralized digital ownership models.
The Rise of Public Chain-Supported Digital Collectibles
While most major Chinese tech firms initially launched digital collectible platforms using permissioned consortium blockchains—such as Ant Chain—to maintain control and compliance, Alibaba Auction has taken a different path. It now features digital artworks minted on public blockchains, including Conflux (CFX), a homegrown Layer-1 blockchain developed by researchers linked to Tsinghua University's elite Yao Class.
Unlike consortium chains, public blockchains allow transparent, verifiable transactions accessible to anyone. A recent high-profile sale involved an image titled "Houhai Tu Er Ye – Fu Lu Shou Xi – Auspicious", which fetched 13,000 yuan on March 28 via the ARTxIP limited auction store. The piece was minted using Conflux’s CRC-721 standard and managed under the DeGallery (YSF) smart contract.
👉 Discover how blockchain technology is transforming digital ownership and art trading today.
What sets this apart is that buyers receive verifiable on-chain proof through third-party services like the WeChat mini-program ArtProve, which provides a “Blockchain Verification Information Overview” including hash addresses and transaction trails. On-chain data confirms these are legitimate NFT assets—despite the cautious terminology used by platforms.
Bridging Platforms: From Alibaba Auction to On-Chain Verification
Despite being listed on Alibaba’s ecosystem, ownership verification happens off-platform. Buyers use external tools like ArtProve to access blockchain records. However, there's a catch: users do not receive private keys controlled by the platform operator. This means they cannot view or transfer their NFTs directly in a Conflux-compatible wallet, limiting true decentralization.
Still, the integration is meaningful. The DeGallery (YSF) contract has issued over 53,400 NFTs, with more than 10,000 unique holders. One wallet alone holds over 800 digital collectibles from Alibaba Auction listings. According to ArtProve’s rules, users can gift their purchased digital works to other verified WeChat users aged 14 or older after holding them for 90 days, or after two years if received as a gift.
This gifting mechanism mimics secondary market activity without formally enabling open trading—a clever workaround under current regulatory constraints.
Conflux Blockchain: A Domestic Public Chain Gaining Momentum
At the heart of this development is Conflux Network, a China-friendly public blockchain that complies with local regulations while offering decentralized infrastructure. Known for solving scalability issues in public ledgers, Conflux has gained traction as a viable alternative for digital asset issuance.
In late March, its native token CFX surged over 30% in 24 hours, briefly reaching $0.18 before stabilizing. As of now, CFX maintains a market cap of approximately **$290 million**, according to CoinMarketCap. Backed by investors like Sequoia China and Baidu Ventures, Conflux operates both public and consortium chain solutions through its Shanghai-based research institute.
Notably, Conflux-powered NFTs on Alibaba Auction aren't new—they trace back to 2021, when the platform collaborated with “Guangqian Collector,” a mini-program incubated by the Conflux Blockchain Research Institute. The initiative, called Guangqian, aimed to provide blockchain-based provenance for digital collectibles and was never limited to a single marketplace.
Today, Alibaba Auction hosts multiple verification systems:
- Conflux for NFT minting and on-chain mapping
- Zhixin Chain (“New Version Chain”), led by the Sichuan Blockchain Industry Association, for copyright authentication
For example, the digital artwork “Cave Planet Artist Series – Wei Shen Phoenix Bringing Blessings” sold for 76,300 yuan using Zhixin Chain certification. Meanwhile, audio NFT “Zen Tea as Clouds, Verses as Words” fetched 50,000 yuan via the same system—though it had only one bidder.
Expanding Horizons: Digital Collectibles Across Industries
Alibaba Auction’s digital collectibles program isn't limited to art. Its invitation-only merchant onboarding covers diverse categories:
- Digital art and music
- Digital trading cards and emojis
- Virtual gaming and esports assets
- Sports memorabilia and cultural tourism experiences
- Digital avatars and charity-themed collectibles
One standout tourism-related item, “Best Winter Visit to Xi’an City Wall – Little Warrior Edition,” was sold in December 2021 and mapped onto the Conflux blockchain. Described as offering exclusive access rights, it exemplifies how digital collectibles are blending real-world utility with virtual ownership.
👉 See how next-generation blockchain platforms are unlocking real-world value through digital assets.
Regulatory Caution Meets Market Demand
Despite growing adoption, platforms tread carefully. Officially, Alibaba Auction does not support financialization of digital collectibles and prohibits speculative trading. Yet informal peer-to-peer transactions continue off-platform—an indication of strong underlying demand.
Moreover, risks remain. On China’s Black Cat Complaints platform, the digital collectibles marketplace Only Art has accumulated over 900 complaints since February 18, citing issues like delayed withdrawals, transaction errors due to system lag, and prolonged audit times.
These challenges underscore the tension between innovation and regulation in China’s tightly controlled digital economy.
Frequently Asked Questions
Q: Are NFTs legal in China?
A: While cryptocurrency trading is banned, blockchain-based digital collectibles are permitted if they avoid financialization and speculation. Platforms must comply with strict guidelines prohibiting secondary market trading and monetary valuation.
Q: Can I sell my Alibaba Auction NFT?
A: Direct sales aren’t allowed. However, you may gift your digital collectible to another eligible WeChat user after 90 days of ownership.
Q: Is Conflux a Chinese government-approved blockchain?
A: Conflux is a domestically developed public blockchain that operates within regulatory boundaries. It focuses on enterprise and cultural applications rather than decentralized finance (DeFi) or crypto trading.
Q: How do I verify my digital collectible?
A: Use third-party tools like the ArtProve WeChat mini-program to retrieve your blockchain verification report, including hash address and transaction history.
Q: Why doesn’t Alibaba use Ant Chain for these NFTs?
A: While Ant Chain is a consortium chain used by Alibaba-affiliated services, Conflux offers public ledger transparency required for verifiable scarcity and provenance—key features for premium digital collectibles.
Q: What prevents fraud in digital collectible auctions?
A: Each item includes blockchain-backed certification via Conflux or Zhixin Chain. While ownership transfer is restricted, on-chain records provide immutable proof of authenticity and transaction history.
The Road Ahead
As consumer interest grows, platforms like Alibaba Auction are testing the boundaries of what’s possible within China’s regulatory sandbox. By leveraging compliant public blockchains like Conflux and enabling limited gifting mechanics, they’re creating a new model of regulated digital ownership.
With core keywords such as NFT, digital collectibles, Conflux blockchain, public blockchain, blockchain verification, CFX token, Alibaba Auction, and digital art marketplace increasingly relevant in search trends, this space is poised for continued growth—driven by cultural value rather than speculative frenzy.
👉 Explore the future of compliant blockchain innovation and digital asset ecosystems now.