By
Mayowa Adebajo
May 16th, 2024
About a year after Huanhe launched, Tencent halted the sale of NFTs on the platform. The new move took effect as of 16th August 2022.
Chinese multinational conglomerate Tencent has shut down its non-fungible token (NFT) platform Huanhe amid heightened scrutiny in the country. The company said it would stop releasing digital collectibles on the platform due to the high scrutiny of NFTs from Chinese regulators.
In the midst of the expanding adoption of NFT in 2021, Tencent also launched Huanhe in August. As the NFT market got the attention of giants in the industry, the government also got interested in space. The platform sold out new collectibles within a short time of launch. The tech giant hoped to amass revenue from the burgeoning space, and now the dream has been cut short.
Tencent Halts NFT Sales on Huanhe
About a year after Huanhe launched, Tencent halted the sale of NFTs on the platform. The new move took effect as of 16th August 2022. Although there would no longer be NFT sales, customers who own NFTs will still be able to hold and display their digital collectibles. Also, they can request a refund for the owned digital assets. Tencent said in a statement that Huanhe is “making adjustments to its business” as the company has decided to focus on its “core strategy.”
The NFT market has been under the close watch of Chinese regulators for some time. Tencent now has its share of the scrutiny due to China’s decision to rule out secondary trading of digital collectibles. Tech giants like Tencent and Ant Group signed a pact in June to halt the secondary trading of digital collectibles. The companies also agreed to “self-regulate” their activities within the market. Sometime last month, Chinese media reported the potential shutdown of Huanhe by Tencent.
China banned crypto trading and mining last year. This raised many questions about the NFT market, which is closely associated with cryptocurrencies. Due to the ban, Tencent had to remove all references to NFTs on Huanhe in October 2021. This was after Chinese state entities warned that NFTs were used for speculative purposes.
Tencent Seeks Higher Stake in Ubisoft
As Tencent is rolling up Huanhe, the tech and entertainment company is moving to expand in other areas. Coinspeaker reported earlier this month that the company wants to expand its stake in French video game company Ubisoft. The Chinese company wants to become the single largest shareholder in Ubisoft after already owning a 5% stake in the French company.
Tencent acquired a 5% stake in Ubisoft about four years ago. Now, it is looking to also buy shares from Ubisoft’s public shareholders. Tencent’s actions show real determination in its expansion in Ubisoft’s ownership. According to some anonymous sources, the Chinese company wants to buy more shares from the Guillemot family, which owns 15% of the company.