GameStop to Pull Back on NFT Marketplace Amid Regulatory Uncertainty
Summary:
Video game retailer, GameStop, announced that it will be reducing its non-fungible token (NFT) marketplace operations next month due to regulatory uncertainty. The decision won't affect customer's NFT ownership. This reduction comes after a series of diminished cryptocurrency offerings in recent years. Despite seeing long-term potential in digital assets within the gaming industry, GameStop CEO Matt Furlong stated that the company won't risk considerable shareholder capital in the uncertain cryptocurrency domain.
GameStop, a leading video game retailer, has alerted its user base that operations on its non-fungible token (NFT) marketplace will be scaled back in the coming month due to regulatory ambiguity. On the company's official website, a notice was posted, informing customers that they have slightly over a fortnight left to exploit its NFT platform. The company reassured its users, however, that this termination of ties with the cryptocurrency world will not affect their NFT ownership. "Starting from February 2, 2024, customers will be incapable of buying, selling, or minting NFTs. Your NFTs, stored in the blockchain, will still be retrievable and tradeable via alternative platforms." The retailer cited the absence of clear regulations as the reason behind the further reduction in its cryptocurrency related services. "Due to the persistent regulatory nebulousness within the crypto sphere, GameStop has chosen to reduce our NFT marketplace operations," the notice stated. This decision follows a series of backsteps from the company in terms of cryptocurrency-related services over the recent years. In August of 2023, as Cointelegraph previously reported, GameStop suggested its customers to safeguard their Secret PassPhrase because the company would soon halt access to iOS and Chrome Extension wallets. In December 2022, a year earlier, GameStop had hinted at moving away from its focus on cryptocurrency, following a net loss of $94.7 million during the third quarter and subsequent letting go of employees from its digital assets department. GameStop's CEO, Matt Furlong, stated that, although the company sees potential in the long-term prospects of digital assets in the gaming industry, it was not willing to jeopardize significant shareholder capital in the uncertain domain of cryptocurrency.
Published At
1/14/2024 8:33:36 AM
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