The prominent video game retailer GameStop has publicized that they will soon turn off their non-fungible token (NFT) market on February 2nd, 2024 due to vague regulations surrounding cryptocurrencies. With only a bit over two weeks left until the closure, GameStop strongly advised users to finish up any trades or get access to their NFTs before the market shuts down. Despite closing the NFT platform, GameStop promised NFT owners that the choice to leave the crypto industry would not impact the ability to access or swap their NFT possessions.
GameStop’s verdict to pull out of the NFT market is credited to the fuzzy regulatory situation around the crypto space. GameStop voiced unease about the questionable regulations and thought it smart to wrap up its NFT offerings. Interestingly, this comes right after the U.S. Securities and Exchange Commission recently greenlit 11 spot Bitcoin exchange-traded funds (ETFs). While some perceive this as a positive step towards regulatory clarity, GameStop’s move away from crypto hints that concerns persist within certain business sectors.
Moreover, this is not GameStop’s first time decreasing its participation in the crypto market. In 2023, GameStop recommended users secure their Secret PassPhrases, signaling the halt of access to iOS and Chrome Extension wallets. The preceding year, in 2022, GameStop unveiled plans to switch focus away from crypto after incurring major net losses and laying off staff from its digital assets division.
GameStop’s CEO conveyed optimism for the long-term potential of digital assets in gaming. However, he also stressed the commitment to avoiding unnecessary risks with investor capital.
