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, a retailer of video games, has informed its customers that, because of regulatory uncertainties, it will be gradually discontinuing its nonfungible token (NFT) marketplace starting next month.
Just over two weeks are left for consumers to utilize GameStop’s NFT platform, the company said on its website.
However, the business reassured NFT holders that their NFTs would not be impacted by its plan to further reduce its association with cryptocurrency
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.
As per the statement, “GameStop has chosen to terminate our NFT marketplace because of the ongoing regulatory unpredictability in the cryptocurrency space.”
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.
As it will be closing its iOS and Chrome Extension wallets, GameStop advised its consumers to safeguard access to their “Secret PassPhrase,” according to a story published by Cointelegraph in August 2023.
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.”