Chinese language regulatory scrutiny of cryptocurrencies has since made its means into the NFT area, as anticipated. Nonetheless, what began out as only a common deterrent to residents from investing in NFTs has unfold to the platforms that supply such companies. One of many platforms that got here below fireplace was Huanhe, an NFT market that was launched by Chinese language social media large Tencent. Now, barely a yr after it was launched for operations, the NFT platform is shutting its doorways.
Tencent Shuts Down NFT Market
Again in 2021, the recognition of NFTs had been rising quickly. At the moment, there have been single NFTs promoting for hundreds of thousands of {dollars}, and people and companies alike rushed to money in on this new craze. Tencent had naturally adopted the pattern, however it could grow to be a mistaken transfer for the social media behemoth.
Tencent introduced the launch of Huanhe final August as a platform the place customers may commerce NFTs on the secondary market. As anticipated, it had seen heat reception from customers, particularly Chinese language NFT buyers. However not too lengthy after, hassle would come for the NFT market within the type of governmental regulation.
The Chinese language authorities had moved rapidly on the NFT market in the identical means it had executed on cryptocurrencies months earlier. It had positioned a ban on NFTs and their buying and selling within the nation, forcing platforms like Huanhe to shut down operations.
The Tencent-backed NFT buying and selling market introduced that it could be halting actions because the ban had impeded its capability to develop available in the market. That is the end result of Tencent scaling again NFT actions after China’s warfare in opposition to non-fungible tokens had begun a couple of months earlier.
NFTs Proceed To Battle
Whereas Tencent has needed to shut down its NFT market resulting from regulatory scrutiny, NFTs themselves haven’t been doing too effectively. Curiosity within the area had dwindled because the bear market pattern emerged, and it has had a profound affect on NFT buying and selling quantity.
Notable NFT collections comparable to BAYC and CryptoPunks have seen their worth drop greater than 80%, and others have suffered related or worse fates. NFT gross sales are down greater than 100%, and the quantity is down in a similar way.
Nonetheless, the decline in curiosity has not appeared to discourage new initiatives from launching. Information from IntoTheBlock reveals that new NFT collections being launched available in the market proceed to rise in August. As of the time of this writing, there are greater than 146,000 NFT collections out there available on the market.
Featured picture from Enterprise 2 Neighborhood, chart from TradingView.com
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