Tencent states, "Based on the company's consideration to focus on its core strategy, Huanhe is making adjustments to its business,"
Chinese multinational company Tencent halts NFT releases on Huanhe/Magic Core platform following heightened scrutiny from authorities. The announcement came a few hours after Tencent revealed its shares had hit a three-year low.
Officially launched last August, Huanhe will not release new NFTs on the platform starting Tuesday. However, owners of existing collectibles can hold or display their NFTs on the marketplace. Furthermore, existing users can still apply for refunds and visit AR art exhibitions.
Tencent announced its plans to shut down Huanhe on July 20, with the platform now ceasing NFT releases. The tech giant, however, made no claims of shutting Huanhe down in the recent statement.
In 2021, Huanhe, like every other Chinese NFT platform, began avoiding the word NFT, instead preferring to call them digital collectibles. This was done to set the platforms and their offerings apart from cryptocurrencies, as crypto trading is banned in China.
Following Beijing's ban on secondary NFT marketplaces, Chinese NFT trading firms experienced low sales as users could no longer resell their collections on OpenSea and other platforms.
In July, "digital collectible" trading platforms Tencent, Ant Group, Baidu, and JD.com signed a pact to make it mandatory to check user IDs for NFT purchases.