In a significant development, video game retailer GameStop has decided to take a step back from crypto and shutter its NFT marketplace.
The development comes months after the video game retailer shut down its NFT wallet, with the retailer set to exit the space entirely.
GameStop Winds Down NFT Marketplace
In a significant shift in strategy, GameStop has stepped back from the crypto space and shuttered its NFT marketplace a year and a half after its launch. GameStop’s NFT marketplace supports gaming NFTs and other gaming collectibles across Loopring and Immutable X, both of which are Ethereum scaling networks. The decision to shut down its NFT marketplace and back away from crypto is a reflection of the ongoing uncertainty in the crypto space and also marks a strategic realignment for the company, which was looking to integrate blockchain technology into its operations.
GameSpot announced the decision in a post on the NFT marketplace website, adding that the platform will cease operations on the 2nd of February, 2024. However, because the NFTs were minted on the blockchain, they can be accessed, bought, and sold through different marketplaces.
“GameStop has decided to wind down our NFT marketplace due to the continuing regulatory uncertainty of the crypto space.”
GameStop Had Previously Shuttered NFT Wallet
GameStop also announced it was shutting down its NFT wallet four months ago, citing the same reason. Traders were also informed in the same method as now, with the announcement made in a pop-up message on the GameStop NFT marketplace website. The shuttering of the NFT marketplace marks GameStop’s gradual retreat from the crypto ecosystem.
GameStop began pivoting towards NFTs and crypto in 2021, forming a small team to manage its NFT marketplace. GameStop then partnered with Immutable and created a $100 million fund in IMX tokens. Just a day after the announcement, GameStop cashed out a significant chunk of the IMX tokens it received, leading to $47 million worth of IMX tokens being dumped onto the market.
In 2022, despite laying off several employees, GameStop announced the launch of its NFT marketplace and added Immutable X gaming NFTs to its new marketplace. Despite these developments, the company’s focus on crypto remained shaky at best. This was primarily due to the departure of its CEO, who was responsible for driving GameStop’s crypto push.
GameStop’s withdrawal from the NFT space reflects a strategic decision that enables the company to refocus on the strengths of its core business. Meanwhile, GameStop’s NFT marketplace has already been removed by DappRadar from its list after being initially added in September 2022.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
