Tech Giant Tencent Reportedly Shutting Down ‘Huanhe’ NFT Platform

Tech Giant Tencent Reportedly Shutting Down ‘Huanhe’ NFT Platform

.

Tech Giant Tencent Reportedly Shutting Down ‘Huanhe’ NFT Platform

According to a report by Chinese news agency Jiemian, cited by the South China Morning Post, Shenzhen-based technology company Tencent is ready to shut down its NFT platform as early as this week. The platform’s commercial potential is reported to have been harmed by prohibitions on secondary trading of NFTs in the People’s Republic.To get more tencent latest news, you can visit shine news official website.

Unknown sources inside Tencent are cited by Jiemian, but the business has declined to provide an official response to the claim. A year ago, Huanhe, a company that produces and distributes blockchain-based digital assets, was founded.Users may still see augmented reality art shows despite the fact that all NFTs on the app have been tagged as “sold out.” In another allegation from state-owned media Yicai Global, a second Tencent insider claims that trade was suspended in early July due to a possible crackdown.

It was built by Tencent’s Platform and Content Group (PCG), which was severely impacted earlier this year. Tencent’s withdrawal from the digital collectibles market would be significant if the NFT company shuts down, according to the SCMP.

Public accounts promoting secondary trading or providing assistance for non-fungible tokens were banned from Tencent’s social networking platform WeChat in June. NFTs were no longer available via the Tencent News app shortly after.

As a result of this cautious approach, other Chinese tech giants like Alibaba Group Holding have opted to use the word “digital collectibles,” which isn’t necessarily related to cryptocurrencies, to describe NFTs on their platforms.

To combat cryptocurrency-related activity, the mainland authorities have started cracking down. Currently, the tokens can only be bought using Chinese cash and cannot be sold again.
Shares of Chinese technology firms Alibaba and Tencent fell sharply on Monday, a day after Chinese regulators fined their subsidiaries for not disclosing transactions and failing to comply with anti-monopoly rules.

E-commerce giant Alibaba’s shares in Hong Kong fell 6.8%, while gaming and social media company Tencent Holdings sank 3.2%. The Hang Seng index declined 3%.

On Sunday, China’s State Administration for Market Regulation published a list of 28 deals that violated anti-monopoly rules.

It included five of Alibaba’s transactions and 12 of Tencent’s. A wide-reaching crackdown on the technology sector has often hit stock prices in Hong Kong and Shanghai. For violations in each case, the maximum fine was 500,000 yuan ($74,500).

A wide-reaching crackdown on the technology sector has often hit stock prices in Hong Kong and Shanghai, though signs the authorities might be easing up spurred gains in recent months.Alibaba’s shares had risen 70% and Tencent’s were up 18% since mid-March, before Monday’s losses.

“The dip is likely to be temporary. The market was more wary about the U.S. raising interest rates so sharply, but it’s just been overrun by the new fines,” said Francis Lun, an investment manager and veteran market commentator in Hong Kong.

An increase in coronavirus cases that raised fears of more pandemic lockdowns in Shanghai also shook investor sentiment, he said.

38 Views