China’s internet giant Tencent has reportedly shut down one of the two nonfungible token (NFT) platforms owing to declining sales aided by the regressive monetary policies of the Chinese government. Tencent shut down one of its NFT platforms on July 1 while the other one is struggling to remain afloat. The primary reason for the slow down in sales and ultimate closure of Tencent’s digital collectible platform is being blamed on flawed government policy that prohibits buyers from selling their NFTs in private transactions after purchase, which makes these NFTS not so lucrative. The lack of a secondary market kills any chance of making a profit on these digital collectibles. However, with the rise in popularity, it also got attention from the government which has warned investors to be wary of frauds associated with these NFTs.

DeFiance Capital stated that none of its assets under management were raised by the bankrupt crypto hedge fund, its founders, or any of its affiliates. The company said it had been “materially affected” and “prejudiced” by the recent turn of events. DeFiance Capital also said Cheong created the firm “entirely separate” from Three Arrows in 2020, eight years after the hedge fund was founded by Kyle Davies and Zhu Su. Earlier reports emerged that the web3-focused venture capital firm was incubated by Three Arrows and that the two firms had jointly co-invested in several deals, including stakes in dYdX as well as Solana-based smart contract specialist Orca.

Major hardware wallet maker Trezor said they have noticed higher interest in their devices following a string of crypto company meltdowns and centralized exchanges suspending withdrawals. According to a company spokesperson, bitcoin (BTC) and crypto holders are “getting nervous about holding their coins with custodians and are exploring self-custody options.” That said, there is still work to be done in educating people about what it means to hold one’s coin on a crypto exchange, instead of being the only person able to access and control them. Trezor's observations come, not simply during a particularly harsh crypto bear market, but also during the massive turmoil in which a number of centralized crypto companies have found themselves, struggling not to sink and drown.