GameStop shuts down NFT marketplace over regulatory worries

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GameStop, a widely known retailer of video video games and shopper electronics, has revealed plans to halt operations on its non-fungible token (NFT) market by Feb. 2.

The corporate shared the information through a pop-up message on the GameStop NFT Market website, stating it was pushed by the persistent regulatory ambiguities surrounding the crypto sector.

“GameStop has determined to wind down our NFT market as a result of persevering with regulatory uncertainty of the crypto area,” the message learn partly.

In accordance with the message, present NFT holders will keep entry to their belongings via different NFT platforms. Nonetheless, the power to mint or conduct transactions throughout the GameStop NFT market will likely be discontinued.

This choice is the newest signal of a change in technique for GameStop, because it seeks to distance itself from crypto and NFTs, indicating a shift from riskier investments within the crypto business.

The corporate launched the NFT platform in July 2022 to facilitate the shopping for, promoting, and minting of non-fungible tokens, primarily these rooted in gaming themes and related to GameStop rewards.

Its entry into NFTs and cryptocurrency was initially a part of a resurrection plan following a challenging enterprise interval culminating in a short-squeeze incident in January 2021, made well-known by the film “Dumb Money.”

At the moment, the corporate employed a 20-member workforce to supervise the gaming NFT market and partnered with Immutable X. Nonetheless, a number of months later, the corporate made a big reversal of its crypto technique.

Regardless of preliminary optimism, the NFT market has seen a big drop, with month-to-month buying and selling volumes plummeting over 97% from their highest level. 

This decline, coupled with GameStop’s comparatively minor function within the general NFT buying and selling scene, might have presumably influenced the corporate’s choice to drag again from the sector.

The sudden shutdown of the NFT market didn’t stun business insiders. Earlier than this newest announcement, GameStop discontinued its crypto pockets in August 2023 and, as of Nov. 1, ceased all assist for it. 

The crypto pockets’s discontinuation occurred on the heels of the dismissal of GameStop’s CEO, Matt Furlong, who had been on the helm throughout the pockets and market launches.

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