GameStop’s decision to close its NFT marketplace comes after a series of cuts in its crypto services throughout the last two years. Ahead of next month, GameStop, a retailer of video games, will be gradually discontinuing its non-fungible token (NFT) marketplace because of undetermined regulations.
Users are reminded that they have just over two weeks left to access GameStop’s NFT platform by a statement posted on the company website. The business did, however, reassure NFT holders that their NFTs will remain unaffected by its plan to further reduce its ties with cryptocurrency.
“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 gaming corporation said that its cryptocurrency services had further declined due to a lack of regulation.
According to the statement, “GameStop has decided to wind down our NFT marketplace due to the ongoing regulatory uncertainty of the crypto space.”
That being said, GameStop’s headquarters are in the US. The U.S. Securities and Exchange Commission’s (SEC) recent decision to approve eleven spot Bitcoin exchange-traded funds (ETFs) is seen as a sign that regulators are becoming more open to additional regulation in the space, even though many leaders in the crypto industry are calling for more regulatory clarity.
This follows a run of decreases in the gaming company’s cryptocurrency offerings over the past few years. It was announced in August 2023 that GameStop will no longer be allowing consumers to access their iOS and Chrome Extension wallets, and that instead, they should protect access to their Secret Passphrase.
After reporting $94.7 million in net losses for the third quarter and terminating employees from its digital assets division, GameStop announced in December of the previous year that it would be shifting its emphasis away from cryptocurrency.
While GameStop is bullish on cryptocurrencies, CEO Matt Furlong clarified that he didn’t want to jeopardise investor money.
“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.”