A China-based giant in Internet technology, Tencent, has put closure to its non-fungible token (NFT) venue (which is one of the two) because of the plunging sales along with the stringent monetary measures implemented by the government of China.
On 1st July, Tencent closed its 1 NFT venue whereas the other NFT platform thereof is endeavoring to sustain its position. A report published on the behalf of a local newspaper points out that the respective procedure started in May. A prominent tech company transferred the chief executives specified for the management of the NFT venue in the denouement of May and eliminated the digital collectible segment from its application named Tencent News by the initial week of July.
The core reason to hold back the sales as well as eventually stopping the digital collectible venue of Tencent is a thing which is put mentioned to be caused by the defective policy of the government that restricts the purchasers from trading the NFTs in their possession in private transfers following their purchase. The deficiency of a subordinate market removes any opportunity of having benefited from the respective digital collectibles.
Considerable traction has been witnessed within the sphere of NFTs particularly in the Chinese region in the present year as many tech firms like Alibaba and Tencent are getting interested in introducing their digital collectible venues. Nonetheless, with the popularity gained by this sector, the government authorities are also closely observing this scenario and have cautioned the investors against the fraudulent activities that take place in this space.
In March of this year, many social media platforms based in China like WeChat and Weibo began excluding the accounts related to the venues that were propagating the digital collectibles, being afraid of the thing that the authorities would crack them down due to assisting such companies. In the previous month, Alibaba introduced a venue for NFTs however it shortly excluded it and the things related to it from the internet.
Though the government in China is considered to be thoroughly anti-crypto as it has prohibited all forms of crypto transfers throughout the country’s jurisdiction, no such complete restriction has been placed on the world of NFTs. Nevertheless, business giants, as well as the tech venues, are even now moving with great caution, afraid of the harsh measures taken on the behalf of the government in Beijing.
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