GameStop has battled to stay solvent for years and isn’t finding solid ground with NFTs
GameStop has alerted its users that it will be phasing out its nonfungible token (NFT) marketplace in February due to uncertainty about its regulation. In a declaration on GameStop’s website, the gaming retailer informed users that they have just over two weeks left to access the NFT platform, but guaranteed NFT holders that this decision won’t affect their NFTs.
“Effective as of February 2, 2024, customers will no longer be able to buy, sell or create NFTs. Your NFTs are on the blockchain and will remain accessible and saleable through other platforms.” The company cited an absence of regulation as the reason for further reducing its crypto services.
“GameStop has decided to wind down our NFT marketplace due to the continuing regulatory uncertainty of the crypto space,” noted the statement.
GameStop is based in the US. With multiple leaders in the crypto industry supporting increased regulatory clarity, the recent approval of 11 spot Bitcoin exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC) is viewed as a positive signal that it is becoming more open-minded about further regulation in the industry.
GameStop advised its customers to secure access to their “Secret PassPhrase,” as it announced it would discontinue access to iOS and Chrome Extension wallets in August 2023.
Today’s spot Bitcoin ETF approvals mark a historic milestone for the future of the digital asset ecosystem.
While action to provide clarity and certainty for digital assets remains necessary, the steps taken today are a significant improvement over regulation by enforcement. https://t.co/RC0OLHB1zQ
— Patrick McHenry (@PatrickMcHenry) January 10, 2024
After a $94.7 million net loss in the third quarter of 2022, GameStop indicated it would be lessening its focus on crypto In December of that year. CEO Matt Furlong illustrated that while the company is hopeful about crypto, he didn’t want investor funds to be at risk.
“Although we continue to believe there is long-term potential for digital assets in the gaming world, we have not and will not risk meaningful stockholder capital in this space.”
