In a nutshell: It appears non-fungible tokens are having a tough time all over the place, however the battle they’re dealing with in China is much less to do with apathy and crashing crypto costs and extra the fault of tight authorities laws. The scrutiny has led to tech big Tencent Holdings deciding that its NFT platform, Huanhe, is extra hassle than it is price and might be closed down quickly.
China’s authorities has fought a working battle in opposition to cryptocurrency for years, cracking down on mining companies and declaring all crypto transactions unlawful final 12 months. It has an equally dim view in the direction of NFTs, which have a number of guidelines within the nation: they should be bought with yuan, and reselling them for revenue—just about the principle cause why most individuals personal NFTs—is just not allowed.
The restrictions positioned on the reselling market are crushing the enterprise potential of Tencent’s Huanhe platform that mints and points blockchain-based digital collectibles, studies SCMP. As such, the corporate plans to shut it down as quickly as at present, only a 12 months after launch.
All NFTs on the Huanhe app are presently exhibiting as offered out, studies the publication, although customers can nonetheless go to augmented-reality exhibitions exhibiting off collectibles. A state-owned media outlet claims buying and selling was halted in the beginning of the month in anticipation of the crackdown. Another publication studies that {the marketplace} had minimize ties with enterprise companions across the similar time.
Several large firms in China, together with Baidu and JD.com, have been issuing NFTs within the nation whereas being cautious to make use of the time period ‘digital collectible’ to keep away from any potential affiliation with cryptocurrency. Huanhe is without doubt one of the largest and hottest marketplaces, although gross sales have slowed since June. News of its shutdown comes quickly after the closure of Tencent News’ NFT market in July following its January launch.
In NFT-related information exterior of China, Minecraft developer Mojang Studios this week stated non-fungible tokens and blockchain tech would not be allowed on its sport as they encourage profiteering. Elsewhere, the world’s largest NFT market, OpenSea, simply minimize 20% of its workforce because the crypto winter continues. None of this has discouraged GameStop, which goes all in on crypto and NFTs.
