Chinese Tech Giant Tencent Holdings Will Close its NFT Platform
China’s
Tencent Holdings plans to shut down its non-fungible token (NFT) platform
Huanhe after a year of its launch. The social media giant has reportedly
decided due to a strict ban on the resale of NFTs imposed by the authorities in
Beijing.
Huanhe Will Close after China Curbs NFT Resale
The
Shenzhen-headquartered technology conglomerate Tencent is preparing to shut
down its NFT platform reports Chinese media
outlets Jiemian and South China Morning Post. The decision to shut down has
been taken due to restrictions on the secondary trading of NFTs in the People’s
Republic of China, which is said to have affected the business potential of
the platform.
Jiemian has
been citing unidentified sources from Tencent regarding the closure, but the
company has not officially announced the shut down. Huanhe, which issues and
distributes blockchain-based digital collectibles, was launched a year ago.
All NFTs on
the app have been marked as "sold out," although users can still visit
augmented reality art exhibitions. Another report from the state-owned media
Yicai Global reveals that trading halted in early July in anticipation of a
crackdown.
Developed by
Tencent’s Platform and Content Group (PCG), Huanhe was hit hard by the lay-offs
earlier this year. If the NFT unit shuts down activities, this would mark a
major retreat by Tencent from the market for digital collectibles, the SCMP
notes.
In June, Tencent’s social media app WeChat announced its intention to prohibit
public accounts from facilitating secondary trading or offering guidance for
non-fungible tokens. Thereafter, the Tencent News app stopped selling NFTs.
Other Chinese
tech giants, such as Alibaba Group Holding, have been careful with their
involvement with NFTs. To distance themselves from cryptocurrencies, most
Chinese platforms change the NFT label to "digital collectibles."
The government on the mainland has been going after crypto-related activities, including investment, trading, and mining. It has highlighted concerns that speculation could lead to bubbles in the digital asset market while promoting the state-issued digital yuan.
0 Comments