Nfts
GameStop to End NFT Market Amid “Continuing Regulatory Uncertainty”
Stoppage of play exits the non-fungible token (NFT) arena.
In an update posted on his GameStop NFT website, the company said it had decided to end its NFT marketplace “due to ongoing regulatory uncertainty in the crypto space.”
“Starting February 2, 2024, customers will no longer be able to buy, sell, or create NFTs,” GameStop said in the update. “Your NFTs are on the blockchain and will remain accessible and sellable through other platforms.”
GameStop revealed its NFT Marketplace in July 2022, saying it would allow players, creators and collectors to buy, sell and trade digital art collectibles.
The marketplace allows users to connect their own digital asset wallets to the marketplace and own their assets, which are secured on the blockchain.
Two months before unveiling the marketplace, in May 2022, GameStop launched into NFTs and crypto by introducing a digital asset wallet to send, receive and use cryptocurrencies and NFTs across multiple decentralized applications without leaving their web browsers.
News of the NFT marketplace shutdown comes about five months after GameStop’s Aug. 1 announcement that it end of support of this digital asset portfolio on November 1st.
In a post at the time, the company advised customers to ensure they had access to the passphrase that allowed them to recover their account in any compatible wallet.
As with the NFT market, GameStop attributed the end of digital asset wallet support to “regulatory uncertainty in the crypto space.”
NFT sales fell 63% in 2023, despite a tripling of volumes between October and November, Bloomberg News reported Sunday (January 14), citing data from CryptoSlam.
As GameStop ends one investment, the company is potentially embarking on a new one, Seeking Alpha. reported Thursday (January 18). The company’s board of directors approved a new investment policy last month that allows CEO Ryan Cohen and the management team to invest in equity securities and other investments.
The company’s previous policy limited GameStop to investment-grade, short-term income securities when seeking to invest excess cash, according to the report.