Tencent shuts down NFT platform as gov policy makes it impossible to thrive
China’s internet giant Tencent has reportedly shut down one of the two nonfungible token (NFT) platforms owing to declining sales aided by the regressive monetary policies of the Chinese government. Tencent shut down one of its NFT platforms on July 1 while the other one is struggling to remain afloat.
![](data:image/svg+xml;utf-8,<svg xmlns="http://www.w3.org/2000/svg" width="780" height="470" />)
The primary reason for the slow down in sales and ultimate closure of Tencent’s digital collectible platform is being blamed on flawed government policy that prohibits buyers from selling their NFTs in private transactions after purchase, which makes these NFTS not so lucrative. The lack of a secondary market kills any chance of making a profit on these digital collectibles. However, with the rise in popularity, it also got attention from the government which has warned investors to be wary of frauds associated with these NFTs.
2 comments