Tencent stops gross sales on its NFT platform Huanhe a 12 months after launch
Chinese language web large Tencent Holdings’ non-fungible token (NFT) platform Huanhe will now not launch digital collectibles to the general public, it mentioned on Tuesday, as regulatory scrutiny of NFTs mounts within the nation.
The Shenzhen-based firm mentioned that Huanhe, formally launched early final August, will now not launch new NFTs to customers from Tuesday. However the firm mentioned that house owners of present collectibles will nonetheless be capable of maintain, show or request a refund for his or her possessions.
“Based on the company’s consideration to focus on its core strategy, Huanhe is making adjustments to its business,” Tencent mentioned in a press release.
Huanhe is likely one of the largest NFT platforms in China, with new collectibles typically offered out immediately upon launch.
The transfer marks a significant retreat by Tencent from the NFT market, which has come below elevated scrutiny from Chinese language regulators. Digital collectibles within the type of NFTs have grow to be in style around the globe in recent times, largely due to an lively if not extremely speculative secondary market.
After state media repeatedly highlighted points round NFT hypothesis within the nation, tech giants together with Tencent and Ant Group in June signed a pact to cease the secondary buying and selling of digital collectibles and “self-regulate” their actions out there.
The potential shutdown of Huanhe was first reported by Chinese language media final month. In its assertion on Tuesday, Tencent didn’t elaborate on what’s going to occur to the Huanhe model.
Chinese language tech giants have trodden fastidiously with their NFT platforms inside mainland China. Most home platforms largely keep away from the wording NFT, opting to explain them as “digital collectibles” as a substitute in a bid to distance them from cryptocurrencies, that are banned in China.
