Tencent shuts down NFT platform as government policies make it impossible to thrive

Chinese web big Tencent has closed one in every of its two non-functional token (NFT) platforms due to declining gross sales, aided by the Chinese government’s regressive financial coverage.

Tencent shut down one in every of its NFT platforms on July 1, whereas one other is struggling to keep afloat. According to the native newspaper, the method of its removing started in May. The tech big changed the highest executives accountable for managing the NFT platform within the final week of May, and within the first week of July fully eliminated the gathering digital part of the Tencent News app.

The essential motive for the slowdown in gross sales and the eventual shutdown of Tencent’s digital collectibles platform is due to the misguided government coverage that prohibits consumers from promoting their NFTs in personal transactions after buy, making these NFTs much less worthwhile. The lack of a secondary market eliminates the potential of making the most of these digital collections.

NFTs gained a variety of curiosity in China earlier this yr, with a number of tech giants such as Tencent and Alibaba exhibiting curiosity and even launching their very own digital assortment platforms. However, with its rising recognition, it has attracted the eye of the government, which has warned buyers to watch out for scams related to these NFTs.

In March, a number of Chinese social media giants such as Weibo and WeChat started deleting accounts related to the digital crowdfunding platforms, fearing government strain. In June, Alibaba launched its NFT platform, however quickly eliminated all point out of it from the Internet.

While the Chinese government is understood for its anti-crypto stance, which has banned all types of cryptocurrency transactions within the nation, there is no such thing as a full ban on NFTs. However, huge firms and tech giants are nonetheless cautious, fearing a crackdown by the Beijing government.

Wu Blockchain, a China-focused Twitter person, instructed Cointelegraph that residents nonetheless promote their NFTs on “underground” secondary markets, however huge tech firms like Alibaba and Tencent are unable to achieve this.

China’s largest Internet firm, Tencent, has shut down one in every of its digital cryptocurrencies (NFT) platforms, whereas one other platform just isn’t doing nicely. This is as a result of the Chinese government doesn’t enable customers to make personal transactions after buy. https://t.co/VYWS3TxKUF

— Wu Blockchain (@WuBlockchain) July 14, 2022

Despite the ban on cryptocurrency buying and selling, mining and the following warning towards NFTs, Chinese merchants have all the time discovered a approach across the strict regulatory restrictions. For instance, China’s share of Bitcoin (BTC) miners dropped from 60% to zero after the nation banned cryptocurrency mining final yr. However, the newest information reveals that China is again in second place, indicating that miners have discovered a approach regardless of the strict measures taken by the government. Similarly, the variety of NFT platforms within the nation has elevated fivefold in 4 months.

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