China’s leading tech company, Tencent’s subsidiary took down the NFT platform due to plunged sales of digital collectibles thanks to the regressive monetary policies of the Chinese government.
According to Blue Whale Finance, Tencent News has substituted the “Digital Collections” section in the original APP with “Digital Orders”.
Digital Collection Business Adjustment Announcement also unveiled that Tencent News will turn off digital collectible sales service due to the adjustment and transformation of the business model.
The primary reason for the move is the government’s strict policies that prohibit one to sell their digital collectibles on the secondary market after purchase. The absence of a secondary marketplace keeps people out to gain benefits from digital collectibles.
Some digital collectible holders affirmed that Tencent failed to attract people in comparison to its competitors.
Furthermore, Tencent also transferred the position of Wang Shimu, a former head of Tencent News, on May 23. He was transferred to PCG’s social media platform and application line, responsible for innovative businesses such as Magic Core.
However, Magic Core is also suffering from the “slow sales” dilemma recently.
After envisaging a possible crackdown, numerous social media giants such as Weibo, WeChat, and Alibaba have ended up their digital collectibles businesses by removing featured content from their platforms.
Also Read: Tencent Music’s Subsidiary Tests NFT and Virtual Space in App
