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Chinese tech mammoth and PUBG publisher, Tencent, has closed down one of its NFT platforms following the strict government policies. Tencent NFT Marketplace was experiencing a reduction in sales due to the hard approach of the Chinese government toward the monetary ecosystem. As per the local news the organization started to witness the downfall during the May, leading them to take such a step.
Tencent, China's largest internet company, has shut down one of its digital collection (NFT) platforms, and another platform is not doing well. The reason is that the Chinese government does not allow users to conduct private transactions after purchasing.https://t.co/VYWS3TxKUF
The move came during the first week of July, and the other is still struggling to stay intact in the space. Tencent transferred prime executives accountable for handling the NFT platform during the final week of May. They eliminated the virtual collectible section from Tencent news application in the starting week of July 2022.
Major reason for the downfall in trade volume of Tencent NFT marketplace and initiation of this move remains the flawed policies of the Chinese government. The policy puts restrictions on selling the NFTs after they have acquired it, rendering those NFTs not so lucrative. The secondary market becomes deprived of NFT sales, it will eliminate any chances of generating profits from these collections.
The Non-Fungible token market boomed in China at the beginning of this year. Many technology gains like Alibaba and Tencent showing interest and even revealing their own digital collectible markets. But it didn’t just catch the eye of users. They attracted government attention too. But not for the good though. Authorities issued warnings for the investors to stay safe from frauds linked to these digital assets.
During March, Chinese tech behemoths like WeChat and Weibo started to eliminate accounts associated with virtual asset platforms. They were afraid of a government crackdown. Alibaba also launched an NFT marketplace, but ended up like the rest. They removed each and every mention of the platform from the internet.
Despite restrictions on digital assets, Chinese traders have done something to stay in the game. For instance, after the ban on cryptocurrency mining. Miners dropped straight to 0 from 60%. But the number escalated to place the nation in 2nd spot again. This shows that miners won’t stop for anything.
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