Tencent to shut down NFT platform Huanhe only a year after launching

Chinese tech giant is closing the NFT marketplace after the Chinese government’s strict measures on secondary trading of digital collectibles
Tencent NFT logos

The Chinese tech, video games and publishing giant Tencent continues to face problems at home. The Big Tech firm decided to shut down its NFT marketplace called “Huanhe” only about a year after launching it.

Tencent came up with this decision after Beijing’s ban on secondary markets for digital collectibles per the news coming from a China-based media firm Jiemian. With China applying strict restrictions on making second-hand trading of NFTs Huanhe simply became a bad investment for the company.

This isn’t the first time the Chinese gaming giant had to close a platform in Q2 2022. Tencent decided to close its mobile gaming platform WeGame, which initially launched to rival Valve’s Steam. Prior to that, the company ended its streaming platform Penguin eSports due to the Chinese government not allowing the company’s merger plans.

The publisher has been denied for the third time by China’s gaming regulator NPPA this year and failed to obtain publishing licenses at home.

The NFT marketplace Huanhe has been facing issues in sales and even the limited NFT releases remain unsold, according to South China Morning Post.

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