GameStop, the popular gaming retailer, has issued a warning to its users regarding the upcoming discontinuation of its nonfungible token (NFT) marketplace. The decision is attributed to regulatory uncertainty in the crypto space. In a statement on its website, GameStop informed users that they have a little over two weeks left to access the NFT platform. However, the company assured NFT holders that their assets will not be affected by the scaling down of crypto services.
The United States-based gaming company cited the lack of regulation as the primary reason for reducing its involvement in the crypto market. While many leaders in the crypto industry are advocating for clearer regulations, the recent approval of 11 spot Bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) is seen as a positive sign that regulators are becoming more open to further regulation.
This decision follows a series of reductions in GameStop’s crypto offerings in recent years. In August 2023, the company advised its customers to secure access to their “Secret PassPhrase” as it planned to discontinue access to iOS and Chrome Extension wallets. Furthermore, in December 2022, GameStop announced its shift away from crypto after incurring a net loss of $94.7 million in the third quarter and laying off staff from its digital assets department.
GameStop CEO Matt Furlong expressed optimism about crypto but emphasized the importance of protecting investor funds. Despite winding down its NFT marketplace, GameStop remains committed to serving the gaming community and exploring new opportunities in the industry.