GameStop, a retailer known for video games and consumer electronics, has announced plans to cease operations on its non-fungible token (NFT) marketplace by February 2.
The company shared the news through a pop-up message on the GameStop NFT Marketplace website, which it said was driven by ongoing regulatory ambiguity surrounding the cryptocurrency sector.
āGameStop has decided to curtail its NFT market due to ongoing regulatory uncertainty in the cryptocurrency space.ā It’s part of the message.
Current NFT holders will retain access to their assets through other NFT platforms, according to the message. However, the ability to issue or conduct transactions within the GameStop NFT Marketplace will be discontinued.
The decision is the latest sign of a shift in strategy for GameStop, marking a shift away from risky investments in the cryptocurrency industry as it seeks to distance itself from cryptocurrencies and NFTs.
The company launched its NFT platform in July 2022 to facilitate the buying, selling and issuance of non-fungible tokens primarily rooted in gaming themes and associated with GameStop rewards.
The foray into NFTs and cryptocurrencies was initially part of a revival plan following a difficult business period that culminated in the January 2021 short squeeze made famous by the movie “Dumb Money.”
At the time, the company hired a 20-person team and partnered with Immutable X to oversee the gaming NFT market. However, a few months later, the company significantly reversed its cryptocurrency strategy.
Despite initial optimism, the NFT market has fallen significantly, with monthly trading volume plummeting more than 97% from its peak.
This decline, combined with GameStop’s relatively small role in the overall NFT trading scene, probably influenced the company’s decision to exit the sector.
The unexpected closure of the NFT marketplace did not surprise industry insiders. Prior to this announcement, GameStop discontinued cryptocurrency wallets in August 2023 and stopped all support for them on November 1.
The cryptocurrency wallet’s outage comes shortly after the dismissal of GameStop CEO Matt Furlong, who was in charge during the wallet and marketplace launch.