GameStop closes NFT market over regulatory concerns

GameStop, a well-known video game and consumer electronics retailer, has revealed plans to stop trading on its non-fungible token (nft) marketplace by February 2.

The company shared the news via a pop-up message on the GameStop nft Marketplace. nft.gamestop.com/” target=”_blank” rel=”noreferrer noopener”>websitestating that it was driven by the persistent regulatory ambiguities surrounding the cryptocurrency sector.

“GameStop has decided to close our nft marketplace due to continued regulatory uncertainty in the crypto space,” part of the message read.

According to the message, current nft holders will maintain access to their assets through other nft platforms. Still, the ability to mint or transact within the GameStop nft marketplace will be suspended.

This decision is the latest sign of a shift in strategy for GameStop as it seeks to distance itself from cryptocurrencies and NFTs, signaling a shift away from riskier investments in the cryptocurrency industry.

The company launched the nft platform in July 2022 to facilitate the buying, selling, and minting of non-fungible tokens, primarily those based on gaming themes and associated with GameStop rewards.

Its entry into NFTs and cryptocurrencies was initially part of a resurrection plan following a challenging trading period that culminated in a short-lived incident in January 2021, made famous by the film “dumb money.”

At the time, the company hired a 20-member team to oversee the gaming nft market and partnered with Immutable X. However, several months later, the company made a significant pivot in its crypto strategy.

Despite initial optimism, the nft market has seen a significant decline, with monthly trading volumes falling more than 97% from its peak.

Presumably this decline, along with GameStop's relatively minor role in the overall nft trading scene, may have influenced the company's decision to withdraw from the sector.

The unexpected closure of the nft market did not surprise industry experts. Prior to this latest announcement, GameStop discontinued its crypto wallet in August 2023 and, as of November 1, stopped supporting it.

The discontinuation of the crypto wallet came on the heels of the firing of GameStop CEO Matt Furlong, who had been at the helm during the wallet and marketplace launches.