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.

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.

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Harold

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