Tencent will shut down Magic Core, which “leading companies” may land on the construction of NFT trading platforms?

Recently, it is reported that Tencent is planning to abolish its digital collection platform “Magic Core” this week. This news immediately aroused a lot of speculation. Is it due to poor internal management or smelled policy rumors in advance? Why did Tencent, a digital collection platform business less than a year old, suddenly shut down?

You must know that overseas, NFT has already become a deterministic trend. As of June this year, the cumulative transaction volume has reached 67.8 billion US dollars, which is more than 50 times compared to last year’s figure of 1.3 billion US dollars. In China, more than 800 digital collections and related trading platforms have been established this year alone, which is a proper outlet track.

In terms of policies, there have also been good news recently. On July 13, Shanghai proposed in the “14th Five-Year Plan for the Development of Shanghai’s Digital Economy” (hereinafter referred to as the “Plan”) that it will cultivate digital economy during the “14th Five-Year Plan” period. New elements of data, including content and digital trade, support leading companies to explore the construction of NFT (non-fungible tokens) trading platforms.

This news has undoubtedly made the Chinese NFT circle and digital collection circle see the hope of “returning to positive”, and the industry is boiling. Some internal sources pointed out that Tencent chose to team-related businesses at this time because it believed that digital collections are currently over-financialized and users are over-speculating and hyping, and they chose to shut down due to risk control considerations.

There is some truth to the above statement. At present, there are a large number of digital platforms and a mix of fish and dragons. A small number of platforms have complicated shareholder backgrounds, ranging from government direct investment to state-owned assets, from listed companies to blockchain enterprise leaders. In fact, in the digital collection industry chain, distribution platforms, authorized companies, payment institutions, consortium chain platforms, and even individuals participating in it, both buyers and sellers, all benefit from it. However, some people take over the hype of open trading in the secondary market, which is the core of revitalizing the entire industry chain of the digital Tibetan platform.

Since China’s regulatory attitude towards virtual assets has always been relatively cautious, the development of China’s NFT industry is also different from the business model of overseas markets. This is also mentioned in the “Planning”. It is necessary to study and promote the digitization of assets such as NFTs, the global circulation of digital IP, and the protection of digital rights to be piloted in Shanghai.

At the policy level, the regulatory system for digital collections is still in the exploratory stage. At present, from the perspective of national policy orientation and license status, NFT transactions in China are still in the undetermined stage, but according to relevant licenses, filing requirements and practices , it is difficult to obtain some of the licenses required for NFT.

Tencent will shut down Magic Core, which "leading companies" may land on the construction of NFT trading platforms?

At present, the vast majority of digital collection platforms in China have only obtained the Value-Added Telecommunications Business Operation License, without the approval of the local Cyberspace Administration of China and the local financial bureau. Cooperation with third-party payment institutions is also carried out in a risky way.

According to the news released by Shanghai “Planning”, there are no detailed implementation rules for the standards and qualifications of “leading enterprises”. However, according to the current public information in the market, the following analysis is made on leading enterprises that may explore the construction of NFT trading platforms in Shanghai. .

Tencent will shut down Magic Core, which "leading companies" may land on the construction of NFT trading platforms?

Conflux tree graph chain

Conflux is a public chain system created by the Treemap Blockchain Research Institute. Academician Yao Qizhi, a computer scientist and Turing Award winner, serves as the chief scientist.

In terms of government relations, Conflux has a strong background in Shanghai, China; in terms of academic positioning, it is aligned with Algorand in the United States, which has a strong Chinese academic school and Tsinghua-based blockchain style; in terms of regulatory testing, it tries to A balance of regulatory default between the TRON chain that issues the currency and the Chinese alliance chain that has no currency is found.

Conflux tends to lead the financial technology background in the face of the community and investors. It is the only permissionless blockchain network recognized by the Chinese government. For example, the Chinese legal stable currency CNHC with regulatory default is issued on the Conflux Network. In the face of government supervision, Conflux mainly emphasizes the advantages of independent technology. It is a high-performance public chain with Chinese independent property rights built by a team of young Chinese scientists.

Tencent will shut down Magic Core, which "leading companies" may land on the construction of NFT trading platforms?

At present, there are many NFT trading platforms and NFT games in the Conflux public chain ecosystem, but the popularity is not high. There is also a digital Tibetan platform built by the Conflux team, which is being developed and launched. According to G3, Conflux currently also has a digital Tibetan NFT platform called “Taopai” that is raising funds at a valuation of US$30 million.

It is worth noting that currently, the information on the distribution of nodes in the Conflux tree graph chain cannot be found from the official website. If the public chain nodes are distributed globally, there will be a series of regulatory issues such as data export security; if the nodes are all distributed in China, the essence is no different from other alliance chains such as domestic AntChain.

Tencent will shut down Magic Core, which "leading companies" may land on the construction of NFT trading platforms?

Wanxiang Blockchain

Shanghai Wanxiang Blockchain Co., Ltd. was established in 2017 by Xiao Feng, the godfather of domestic blockchain. Its predecessor was China Wanxiang Holdings Co., Ltd., a financial sector of Wanxiang Group. Fang founder Vitalik Buterin served as chief scientist. The annual Shanghai Blockchain International Week held by Wanxiang Blockchain is one of the most influential and well-known events in China.

The main domestic business of Wanxiang Blockchain provides To G and To B customers with blockchain solutions and products based on the currencyless alliance chain. Currency-related businesses such as brokerage trading and investment are mainly based on Hashkey, which is registered in Hong Kong and Singapore.

At present, Wanxiang Blockchain has not directly stated that it will enter the digital platform. However, Wanxiang Blockchain has many businesses, and the number of currency-related projects that it has participated in and shadow holding is even greater. Wanxiang Blockchain can conduct digital platform business through direct investment by its subsidiaries, direct investment, and cooperation with strategic partners.

Ant Group Whale Scout

WhaleTalk is the most popular NFT platform in China at present. The original Alipay-Ant Chain Fan Granule is a company 100% controlled by Ant Group Ant Chain (Shanghai) Digital Technology Co., Ltd.

Backed by the big tree of Ant Group and the national-level application of Alipay, the advantages of whale scout are very obvious. Especially in the early stage of the cold start, the newly launched collections are sold on Alipay and displayed on the homepage to participate in the entrance, and the purchase and payment are completed directly on Alipay, which can easily reach millions of users. In contrast, the empowerment of Magic Core in Tencent’s ecosystem is pitiful, which may be one of the reasons why Tencent closed Magic Core.

Whale Scout is divided into Whale Scout solutions for B-end and Whale Scout APP/mini program for C-end. It is understood that Ali may use the whale scouting solution to build one or two digital Tibetan platforms in succession, which may have been completed, and only wait for the implementation of this compliance policy.

As a platform for Internet giants, WhaleTrack currently has no secondary trading market and only supports gift transfers.WhaleTrack officially does not support the resale and hype of digital collections. Users can create different styles of exhibition halls to display their collections, and other users can watch and interact at any time; and open community functions, users and publishers can post and communicate.

Due to the increasing attention of digital collections, it is a common phenomenon that the collections on whale scouts are sold out in an instant. Although there is no secondary market for the time being, will the release and implementation of this policy lead to an outbreak of whale scouts?

Fun Chain Technology

Similar to Wanxiang Blockchain, headquartered in Hangzhou and founded in 2016, Fun Chain Technology is also a well-known blockchain technology and solution provider in China. It is committed to accelerating the realization of digital transformation for government and enterprise customers. A unicorn enterprise in the domestic blockchain field of technology, with Chen Chun, an academician of the Chinese Academy of Engineering, as the chief scientist.

Tencent will shut down Magic Core, which "leading companies" may land on the construction of NFT trading platforms?

According to the official website, Qulian Technology’s products have been widely used in key areas such as smart cities, financial technology, political and legal intelligence, and energy dual carbon. It has now landed in 200+ typical applications, serving more than 300 national institutions and leading enterprises, supporting The business scale reaches several trillion RMB.

QuChain Technology has incubated and established a number of ecological subsidiaries, including the holding subsidiary Hongdong Shuzang. In addition, Qulian Technology and Kasiya Group also launched the Metaverse gift platform, Zero Realm Digital Collection. It can be seen that QuChain has a lot of layouts in the data collection business, and it is only waiting for policy breakthroughs.


NFTs will become the core economic elements of the next-generation digital economy. Based on the emergence of compliant NFTs on the alliance chain, China’s industrial NFTs are actively exploring the secondary market. The release of the “14th Five-Year Plan for the Development of Shanghai’s Digital Economy” shows that the value of domestic enterprises’ attempts to enter the water on the NFT side is gradually being recognized.

Industry insiders generally believe that Chinese domestic companies have deployed the NFT market and are exploring the blockchain C-end market. China and the United States have adopted relatively different focuses in the development of the blockchain industry in the past. The blockchain practice in the United States places great emphasis on financial resources, while the blockchain NFT industry in China is more inclined to serve the real economy.

At present, China’s domestic NFT market is still in its infancy, facing the test of compliance and compatibility with business models. We will wait and see who the leading NFT trading platform will be.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/tencent-will-shut-down-magic-core-which-leading-companies-may-land-on-the-construction-of-nft-trading-platforms/
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