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BEIJING, August 17 (TMTPOST) -- Tencent"s NFT trading platform Huanhe has announced it would no longer release digital collectables to the public.
On Tuesday, Huanhe announced that it would adjust its business structure as the company shifts to focus on its core strategy. From Tuesday, Huanhe will stop publishing digital collections. Users who purchased digital collections through the Huanhe platform, including the Tencent News Digital Collection, can either hold on to them or initiate a refund request.
As the digital collection distribution platform of Tencent Platform and Content Group, Huanhe was officially launched on August 2, 2021. It has been online for over a year and is one of China"s largest digital collection platforms.
The market was not surprised by the shutdown of Huanhe. Previously, many people close to Tencent were informed that Tencent intended to adjust the business of its digital collection platform "Huanhe", including laying off workers and changing the business direction, to avoid policy risks, reduce costs and improve efficiency.
Digital collectables are one of the applications of NFT (Non-Fungible Tokens), a unique digital certificate registered in the blockchain, which can be anchored as a digital credential of real objects, and be used to record the ownership of various assets such as virtual collectables, in-game assets, virtual assets, digital artwork, real estate, etc., also making it a recognized entity for tradability of specific assets.
The decision came amid increased scrutiny from Chinese regulators. Last Saturday, ,the Internet Finance Association of China, China Banking Association, and the Securities Association of China jointly issued the "Initiative on Preventing Financial Risks Related to NFT", which requires members to resolutely curb the tendency of financial securitization of NFT, prohibit the issuance of trading financial products through NFT, and prompt consumers to resist NFT speculation and not to invest directly or indirectly in NFT.
