Tencent NFT Platform is Shutting Down!

Tencent recently shut down one of its NFT platforms, while the other platforms continue to struggle to stay afloat. According to a recent report, the slowdown process for the platform began in May. The tech giant transferred key executives responsible for managing the NFT platform in the last week of May. Tencent also completely removed the digital collection section from the Tencent News app in the first week of July.

The primary reason for the slowdown in sales and the eventual shutdown of Tencent's digital collection platform is laws that prohibit buyers from selling their NFTs in private transactions after purchase. Flawed government policies that are not lucrative are also blamed for this situation. The lack of a secondary market eliminates the chance to profit from these digital collectibles. NFTs have experienced a surge with several tech giants such as Tencent and Alibaba showing interest. They also gained a lot of traction in China earlier this year when they launched their own digital collectibles platform. However, the rise in popularity has prompted the government to warn investors to be wary of scams associated with NFTs. In March, several Chinese social media giants such as Weibo and WeChat announced that they would remove accounts associated with digital collection platforms, fearing government crackdown. In June, Alibaba announced it would launch an NFT platform. However, it removed all its disclosures from the internet very soon after. The Chinese government is known for its anti-crypto stance, where it bans all forms of cryptocurrency transactions in the country. There is also no such explicit ban against NFTs. However, big businesses and tech giants are still cautious, fearing strict action from the Beijing government. Crypto trading remains on the move despite the mining ban and subsequent warnings against NFTs. Chinese traders always find a way to bypass strict regulatory crackdowns. Last year, for example, China's share of Bitcoin miners dropped from 60 percent to zero after a ban on crypto mining in the country. However, recent data shows that China has climbed back to second place. Similarly, the number of NFT platforms in the country has increased nearly 5-fold in the last four months. Source: nfxhaber.com