Tech Giant Tencent Reportedly Shutting Down ‘Huanhe’ NFT Platform

Tech Giant Tencent Reportedly Shutting Down ‘Huanhe’ NFT Platform
  • The platform’s commercial potential is reported to have been harmed by prohibitions.
  • It was built by Tencent’s Platform and Content Group (PCG).

According to a report by Chinese news agency Jiemian, cited by the South China Morning Post, Shenzhen-based technology company Tencent is ready to shut down its NFT platform as early as this week. The platform’s commercial potential is reported to have been harmed by prohibitions on secondary trading of NFTs in the People’s Republic.

Unknown sources inside Tencent are cited by Jiemian, but the business has declined to provide an official response to the claim. A year ago, Huanhe, a company that produces and distributes blockchain-based digital assets, was founded.

After Effects of Crackdown on NFTs

Users may still see augmented reality art shows despite the fact that all NFTs on the app have been tagged as “sold out.” In another allegation from state-owned media Yicai Global, a second Tencent insider claims that trade was suspended in early July due to a possible crackdown.

It was built by Tencent’s Platform and Content Group (PCG), which was severely impacted earlier this year. Tencent’s withdrawal from the digital collectibles market would be significant if the NFT company shuts down, according to the SCMP.

Public accounts promoting secondary trading or providing assistance for non-fungible tokens were banned from Tencent’s social networking platform WeChat in June. NFTs were no longer available via the Tencent News app shortly after.

As a result of this cautious approach, other Chinese tech giants like Alibaba Group Holding have opted to use the word “digital collectibles,” which isn’t necessarily related to cryptocurrencies, to describe NFTs on their platforms.

To combat cryptocurrency-related activity, the mainland authorities have started cracking down. Currently, the tokens can only be bought using Chinese cash and cannot be sold again.

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An engineering graduate who is passionate about writing and loves the very existence of crypto. Trading forex currency keeps me busy when I am not writing and analysing the crypto world.