Tencent’s NFT Division may get acquired by Tron DAO

The Tron (TRX) founder Justin Sun states that TronDAO, a decentralized autonomous organization that manages the Tron network’s development, wants to “acquire” an NFT division of the Chinese tech powerhouse Tencent.

Justin Sun TRON DAO founder

Insights into Tencent’s closing NFT Division

Tencent once had high expectancies for its NFT units and could have theoretically conceived them into some of Asia’s most lucrative platforms. Tencent has gigantic financial resources and a vast prevalence of gaming and entertainment IPs. But the firm was pushed to heavily shut down its offerings by the Chinese government, which imposed stringent regulations on the NFTs.

These regulations contained a de facto ban on the term NFT itself, following this Tencent and its Chinese competitors were forced to call off their offerings of “digital collectibles”. Beijing has also placed serious restrictions on secondary market trading, and companies have been propelled to use private blockchains instead of popular public networks.

Tencent had tried to rely on, launching the Huanhe app and trading platform. After a hopeful start last year, more recent Huanhe collections have shown downward trends in sales. And earlier this week, the firm revealed that it was closing down Huanhe for good. Read more…

A number of other NFT-linked Tencent services, which also include Magic Core, have been committed to closure, and Tencent is inclined to take cost-saving measures after undergoing a 23% year-on-year slump in net profits in Q1 of the current financial year. The company saw similar drops in the last two quarters of Financial Year 2021.

A media outlet suggested that Magic Core would discontinue operating this week, quoting unknown Tencent insiders.

However, as mentioned earlier Justin sun is eager to step in and wants to integrate Huanhe as part of the ApeNFT ecosystem.

Justin’s tweet: 

When a Twitter user replied by inquiring Sun to make sure he filtered the employees so that they will have someone who can make the team successful, the Tron founder replied:

Also read, Justin Sun’s views on Web3 decentralization

ApeNFT was launched in April as the first official NFT marketplace on the Tron network. Sun has endeavored to kickstart appeal in the platform by donating several well-known artworks to the ApeNFT’s foundation to support the development of NFT art. These artworks include “Le Nez” by Giacometti and “Femme nue couchée au collier (Marie-Thérèse)” by Pablo Picasso.

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