Yucang, a digital art collection platform incubated by the blockchain business of Hundsun Technologies, announced on Monday that it will be shut down.
Founded in Hangzhou in 1995 and listed on the main board of the Shanghai Stock Exchange in 2003, Hundsun Technologies is a financial software and network service provider. In 2015, the company began to get involved in the blockchain field. In 2019, the Hundsun chain developed by “Hundsun HSL” was registered with the Cyberspace Administration of China, and provided blockchain technical support for the Yucang platform.
The content of Yucang’s announcement mentioned that “At present, there are no clear laws, regulations and policy documents related to digital collections in China. As an emerging field, digital collections still have certain uncertainties and risks.”
The platform said that after prudent evaluation, it decided to suspend the sale of digital collections from now on, while donations will also be suspended. The platform will also close registration of new users.
The platform’s donation function was designed by the platform to engage in the digital collection business for the circulation of collections. Generally, users are required to authenticate their real names and hold the collections for a certain period of time before donating the collections to other users. Yucang limits this function to 60 days, and says it refuses to hype.
Whether it is a permanent suspension or not, Yucang said that the subsequent re-opening will be depend on the direction of relevant policies. At the same time, Yucang will withdraw previously sold digital collections by means of “repurchase at the original price”. Users can choose whether to continue to hold the digital collection of the platform.
If users choose not to withdraw, they can retain the collection and viewing functions. If they choose to withdraw, the platform says that it will refund the original purchase price, reclaim the rights and interests of the relevant collections after completion, cancel the account, and delete any personal privacy information.
Previously in May, Yucang worked with Yangchuang Culture to issue a batch of digital collections with the theme of The Classic of Mountains and Seas, each with a quantity of 6,000 copies and a price of 19.9 yuan ($2.97). At that time, Yucang said that mystery toy boxes, airdrops, synthesis, donations and others would be opened one after another to give users more more options.
On May 18, Yucang announced that the platform server suffered technical attacks, and some people engaged in black market used tag-on services to cause the server to be paralyzed, so Yucang adjusted the sale time of the collection. However, just over a month later, the platform chose to suspend the sale of digital collections.