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Tencent to cut domestic NFT marketplace team, look overseas: report

source-logo  forkast.news 22 July 2022 10:32, UTC

Tencent will lay off an undisclosed number of its mainland China non-fungible token (NFT) marketplace team and adjust the platform’s business strategy, as it prepares another NFT marketplace serving overseas users, sources close to Tencent said, Chinese financial media Caixin Thursday reported.

See related article: Tencent to shut Huanhe NFT marketplace: report

Fast facts

  • Huanhe is due to close within the week and managers have been notified of the shutdown, while the marketplace stopped collaborating with business partners since early July, Tencent insiders said, according to Chinese media Jiemian’s reports this week.
  • Tencent has not issued a public response to reports of the shutdown as of press time, nor has it responded to Forkast’s inquiries about plans to develop an overseas NFT market.
  • Launched last August, Huanhe has grown to be one of the largest NFT marketplaces in China within less than a year.
  • However, Chinese authorities have consistently warned about financial speculation and hype surrounding NFTs, which made Chinese marketplaces reluctant to allow NFT secondary trading — Huanhe reportedly hasn’t allowed secondary transactions of NFTs.
  • Consequently, Huanhe has experienced slow NFT sales since June.

See related article: Chinese marketplace repurchases NFTs, citing uncertain policies