[Caihua News] CMON (01792.HK) announced that on September 1, 2021, a subsidiary of the company, cmonpte.Ltd., and MonsoonDigitalPTE.Ltd. (“Monsoon”, a company registered in Singapore) signed a non-legally binding memorandum of understanding to launch a new series of digital collectibles using Monsoon's upcoming non-homogenized token “NFT” trading platform. An NFT is a type of cryptographically protected data unit on a digital ledger known as a “blockchain”. Among them, each NFT represents a unique digital piece of data. NFTs can represent digital files, such as works of art, audio files, videos, game projects, and other forms of creative work.

Through its game design, the Group has developed and produced exclusive works of art that are popular among its customer base. According to the Memorandum of Understanding, the Group intends to grant its intellectual property rights to Monsoon's “licensing arrangement”, in which the proprietary art works will be used to issue NFTs, and the relevant NFTs will be allowed to be traded on its platform. By awarding exclusive works of art to the Group to create digital collectibles, the Group will be able to use its existing assets to broaden its revenue stream, access the booming cryptocurrency market, and strengthen the viability and brand loyalty of its own games.

As a blockchain-focused company, Monsoon was founded to create solutions for companies in the luxury goods, games and collectibles markets, and to provide an online platform for collectors, art lovers and gamers to organize, display and trade digital collectibles. Its NFT trading platform is expected to launch in late 2021.