On July 1, the Tencent News app also suspended sales services for digital collections. Wang Shimu, in charge of Huanhe, was just transferred to the Platform & Content Group’s social platform and application line in May. Previously, he was the head of Tencent News.
At the launch of Huanhe (幻核), it claimed to be an “NFT” trading platform. However, a name change took place in October 2021. Back then, some media outlets found that the word “NFT” had disappeared from Huanhe’s app, and all such mentions were changed to “digital collection” (数字藏品), a term now commonly used in China following a crackdown on NFT trading.
Ethereum, which is supported by overseas NFT trading platforms, is a paid platform, and corresponding fees need to be paid for the uploading of works, usually in cryptocurrency. However, China’s regulatory authorities have issued a series of laws explicitly prohibiting the pricing and trading of virtual currency.
Huanhe’s team previously responded to the name change, saying that the digital collection business in Huanhe requires real name of users and complete reviews, and it prohibits the transfer of digital products among users.
During a conference call after the release of a Q1 financial report, Pony Ma, Chairman and CEO of Tencent, said that facing the challenges of the industry, the company implemented cost control measures and adjusted some non-core businesses, which will help to achieve a more optimized cost structure in the future.