A version of this article previously appeared on TechNode.
According to Chinese business news site Jiemian, Chinese tech giant Tencent is in the process of closing its digital collectible platform Huanhe after launching in August 2021.
Digital collectibles are China’s version of NFTs with some key differences; for instance, there are restrictions on reselling the former.
Huanhe is supported by blockchains managed by Tencent and its partners. The end of Huanhe may also mean the end of collectibles bought on the platform, which has raised concerns from customers.
The closing of Huanhe is surprising given the fact that NFTs are booming in China. NFT art seems to be especially popular in Hong Kong, where individuals and institutions alike have hopped on board the trend.
Jiemian reported that Huanhe had closed its external service earlier this month, citing an unnamed source. However, Chinese media outlet China Times reported that “the platform hasn’t received any notice and they are operating as usual.”
In May, Wang Shimu, head of Tencent News, joined the social platform and applications line, which includes the Huanhe unit. Tencent News subsequently shut down purchase links for NFTs on July 1, and released an announcement to guide users to Huanhe.
Huanhe has experienced a major slow down in sales as of late. For example, the platform has failed to sell 20,245 NFTs featuring calligraphy by the late and respected Master Hong Yi, and is closing the sales for these items.
In early 2022, Tencent’s Huanhe unit informed Jiemian that they were in the midst of developing a metaverse product. That being said, key employees of the unit packed up and left in April, Jiemian’s report reveals.
Tencent is not the first Chinese tech giant to take a whack at the NFT world. Since 2021, many major Chinese tech firms have launched their own NFT-related platforms. For example, Alibaba’s Ant Group introduced Topnod, or Jing Tan in Mandarin, to its AntChain in late 2021, while ecommerce giant JD.com launched an NFT platform called Lingxi last December.
Cover image via VCG
