Chinese technology conglomerate, Tencent, has announced its exit from the non-fungible token (NFT) market after just a year. Its NFT platform Huanhe will no longer issue new NFTs but will allow existing users to continue sharing their digital collectibles on the site. The company will also offer refunds to users on request.
“Based on the company’s consideration to focus on its core strategy, Huanhe is making adjustments to its business,” said Tencent in an official statement.
A number of external and internal factors have arguably led to this decision. While it is one of the biggest NFT platforms in China, Huanhe has recently seen slow sales of its limited releases, which might relate to the inability to re-sell the items.
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