Huanhe, a digital collection exchange platform owned by Chinese tech giant Tencentwill be abolished this week, national media Jemian News reported on July 20, citing Tencent initiates.
On July 1, Tencent The News app has also suspended digital collection sales services. Wang Shimu, head of Huanhe, was just transferred to Platform & Content Group’s social platform and application line in May. Previously, he was the head of Tencent New.
When Huanhe (幻核) was launched, it claimed to be an “NFT” trading platform. However, a name change took place in October 2021. At the time, some media found that the word “NFT” had disappeared from Huanhe’s app, and all such mentions were replaced with “digital collection” (数字藏品), a now commonly used term. used in China following a crackdown on NFT trading.
Ethereum, which is supported by overseas NFT trading platforms, is a paid platform, and a corresponding fee must be paid for downloading works, usually in cryptocurrency. However, Chinese regulators have issued a series of laws explicitly prohibiting the pricing and trading of virtual currency.
The Huanhe team previously responded to the name change, saying that the digital collection business in Huanhe requires users’ real names and full reviews, and prohibits the transfer of digital products between users.
SEE ALSO: Tencent News halts digital collection activity
In a conference call after the release of a first quarter financial report, Pony Ma, chairman and CEO of Tencentsaid that in the face of industry challenges, the company has implemented cost control measures and adjusted some non-core activities, which will help optimize the cost structure in the future.
In the first quarter of fiscal 2022, TencentNet profit was 25.55 billion yuan ($3.78 billion), down 23% year-on-year. This is the third consecutive quarter that Tencentnet profit decreased.