Tencent shuts down NFT platform as government policy prevents it from thriving
Although NFTs are not banned in China like cryptocurrencies, the government has warned of fraud risks associated with nascent sector.
New
Chinese internet giant Tencent has reportedly shut down one of the two non-fungible token (NFT) platforms due to declining sales aided by the Chinese government's regressive monetary policies.
Tencent shut down one of its NFT platforms on July 1, while the other struggles to stay afloat. A local daily report indicates that the liquidation process began in May. The tech giant transferred key executives responsible for running the NFT platform in the last week of May and completely removed the digital collectibles section of its Tencent News app in the first week. of July.
The main reason for the slowdown in sales and the permanent shutdown of Tencent's digital collection platform is blamed on a flawed government policy that prohibits buyers from selling their NFTs in private transactions after purchase , which makes such NFTS unprofitable. The lack of a secondary market kills any chance of making a profit on these digital collectibles.
NFTs gained popularity in China earlier this year, with several tech giants such as Tencent and Alibaba showing interest and even launching their own digital collectibles platforms. However, with the rise in popularity, it also caught the attention of the government, which warned investors to beware of fraud associated with these NFTs.
In March, several Chinese social media giants such as Weibo and WeChat began deleting accounts
Although NFTs are not banned in China like cryptocurrencies, the government has warned of fraud risks associated with nascent sector.
New
Chinese internet giant Tencent has reportedly shut down one of the two non-fungible token (NFT) platforms due to declining sales aided by the Chinese government's regressive monetary policies.
Tencent shut down one of its NFT platforms on July 1, while the other struggles to stay afloat. A local daily report indicates that the liquidation process began in May. The tech giant transferred key executives responsible for running the NFT platform in the last week of May and completely removed the digital collectibles section of its Tencent News app in the first week. of July.
The main reason for the slowdown in sales and the permanent shutdown of Tencent's digital collection platform is blamed on a flawed government policy that prohibits buyers from selling their NFTs in private transactions after purchase , which makes such NFTS unprofitable. The lack of a secondary market kills any chance of making a profit on these digital collectibles.
NFTs gained popularity in China earlier this year, with several tech giants such as Tencent and Alibaba showing interest and even launching their own digital collectibles platforms. However, with the rise in popularity, it also caught the attention of the government, which warned investors to beware of fraud associated with these NFTs.
In March, several Chinese social media giants such as Weibo and WeChat began deleting accounts
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