China’s Tencent Holdings plans to close down its non-fungible token (NFT) platform Huanhe solely a yr after its launch. The social media big has reportedly made the choice due to the strict ban on the resale of NFTs imposed by the authorities in Beijing.
Huanhe to Shut Down a 12 months After Launch as China Curbs NFT reselling
Shenzhen-headquartered expertise conglomerate Tencent is getting ready to close down its NFT platform as early as this week, in response to a report by Chinese language media outlet Jiemian, quoted by the South China Morning Submit. The transfer comes amid restrictions on the secondary buying and selling of NFTs in the Folks’s Republic that are mentioned to have harm the platform’s enterprise potential.
Jiemian is citing unidentified sources from Tencent however the firm has avoided offering an official touch upon the matter. Huanhe, which points and distributes blockchain-based digital collectibles, was launched only a yr in the past.
All NFTs on the app are already marked as “bought out,” though customers can nonetheless go to augmented actuality artwork exhibitions. One other report quoting a special Tencent supply, from the state-owned media Yicai International, reveals that buying and selling halted in early July in anticipation of a crackdown.
Huanhe was developed by Tencent’s Platform and Content material Group (PCG), which was hit exhausting by lay-offs earlier this yr. If the NFT unit terminates actions, this could mark a serious retreat by Tencent from the market of digital collectibles, the SCMP notes.
In June, Tencent’s social media app Wechat introduced its intentions to ban public accounts facilitating secondary buying and selling or providing steering for non-fungible tokens. A bit later, the Tencent Information app stopped promoting NFTs.
Different Chinese language tech giants, equivalent to Alibaba Group Holding, have been cautious with their involvement with NFTs, with Chinese language platforms often substituting the NFT label with the time period “digital collectibles,” which isn’t essentially related to cryptocurrencies.
The federal government in the mainland has been going after crypto-related actions, together with funding, buying and selling, and mining. It has highlighted considerations that hypothesis may result in bubbles in the digital belongings market, whereas selling the state-issued digital yuan. In keeping with present rules, the tokens could be bought solely with Chinese language fiat and by no means resold.
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