Tech giant Tencent is said to have shut down one of the two NFT platforms due to a drop in sales due to the Chinese government’s restrictive policies.

Tencent has shut down one NFT platform since July 1, and the other is still struggling to stay afloat. A local newspaper reported that the tech giant started rotating executives in the last week of May, and the latest move was to completely remove the digital collectibles column from the Tencent News app by the first week of July.

It seems that the main reason sales slowed and ultimately resulted in the shutdown was the government.

China has banned users from making private transactions after purchasing NFT, which has impacted the platform as NFT cannot continue to be profitable for its owners. The lack of a secondary market kills any opportunity to profit from these digital collectibles.

NFT has gained a lot of traction in China and since the beginning of the year, giants Tencent and Alibaba have poured a lot of money into this segment. But it was the same increase in heat that led the government to put the NFT in the spotlight.

In March, Weibo and WeChat deleted accounts linked to digital collection platforms over fears the government would take notice. By June, Alibaba had released an NFT platform but also soon removed all mentions of it from the internet.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.

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Tencent Shuts Down An NFT Platform Because Of Government Restrictions

Tech giant Tencent is said to have shut down one of the two NFT platforms due to a drop in sales due to the Chinese government’s restrictive policies.

Tencent has shut down one NFT platform since July 1, and the other is still struggling to stay afloat. A local newspaper reported that the tech giant started rotating executives in the last week of May, and the latest move was to completely remove the digital collectibles column from the Tencent News app by the first week of July.

Tencent, China's largest internet company, has shut down one of its digital collection (NFT) platforms, and another platform is not doing well. The reason is that the Chinese government does not allow users to conduct private transactions after purchasing.https://t.co/VYWS3TxKUF

— Wu Blockchain (@WuBlockchain) July 14, 2022

It seems that the main reason sales slowed and ultimately resulted in the shutdown was the government.

China has banned users from making private transactions after purchasing NFT, which has impacted the platform as NFT cannot continue to be profitable for its owners. The lack of a secondary market kills any opportunity to profit from these digital collectibles.

NFT has gained a lot of traction in China and since the beginning of the year, giants Tencent and Alibaba have poured a lot of money into this segment. But it was the same increase in heat that led the government to put the NFT in the spotlight.

In March, Weibo and WeChat deleted accounts linked to digital collection platforms over fears the government would take notice. By June, Alibaba had released an NFT platform but also soon removed all mentions of it from the internet.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Harold

CoinCu News

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