Due to uncertain regulations, GameStop will close its NFT marketplace.
After making several cuts to its cryptocurrency offerings over the previous two years, GameStop has decided to terminate its NFT marketplace.
GameStop announced it will begin discontinuing its NFT marketplace next month, citing regulatory uncertainties as the reason for this decision.
The company announced on its website that consumers have just over two weeks to utilize GameStop’s NFT platform.
However, the business reassured NFT holders that its plan to further reduce its association with cryptocurrency would not impact their NFTs.
With effect from February 2, 2024, clients will be unable to purchase, trade, or generate NFTs. You may still access and sell your NFTs through other sites because they are stored on the blockchain.
Further reducing its crypto services, the gaming giant blamed a lack of regulation.
“GameStop announced it is terminating its NFT marketplace due to the ongoing regulatory unpredictability within the cryptocurrency industry.”
The main office of GameStop is located in the US. The recent approval of eleven spot Bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) is viewed as a sign that regulators are growing more open to additional regulation in the space, even though many leaders in the crypto industry are calling for greater regulatory clarity.
This follows a run of decreases in the gaming company’s cryptocurrency offerings over the last few years.
GameStop advised consumers to secure their ‘Secret PassPhrase’ as it closes its iOS and Chrome Extension wallets, Cointelegraph reported.
A $94.7 million net loss in the third quarter and employee layoffs in its digital assets section led GameStop to announce in December 2022 that it would be shifting its emphasis away from cryptocurrency.
Though he didn’t want to jeopardize investor money, GameStop CEO Matt Furlong clarified that the firm is bullish about cryptocurrencies.
“Although we still think there is significant shareholder capital at risk in the gaming industry, we have not and will not risk it here.”
