Gamestop is set to close its NFT marketplace after just 18 months of operation, as shown on the company’s website.
Gamestop’s alliance with NFTs is ending, as the company has announced on its NFT-focused site that the business will no longer offer a marketplace due to “regulatory uncertainty”. The change will be effective from February 2, and users can no longer buy, sell, or create NFTs using the platform.
However, the company notes that users will still be able to access their assets, and that they will remain on the blockchain, and will be able to be sold through alternative platforms. According to Decrypt, this news comes four months after the firm closed its NFT wallet services.
Gamestop is trading at 13% lower than its value as of December 2023. While CEO Ryan Cohen remained a bullish figure among many investing in the stock, it appears that the company’s crypto gambit has failed.
The marketplace supported “gaming” focused NFTs and collectibles, it also had access to networks Immutable X and Loopring, which are both Ethereum-based networks.
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The #GameStop NFT Marketplace is winding downWe would like to thank @GameStop for choosing Loopring L2 as an integration partner. It was a pleasure working with the team thereCreators: the future doesn't stop here. Loopring L2 has become a home for amazing NFT artists,… pic.twitter.com/B6H57kUDBg
— Loopring💙 (@loopringorg) January 12, 2024
Regulatory uncertainty shuts down marketplace
Gamestop’s citation of regulatory uncertainty is an interesting one, while NFT fever hit fever pitch several years ago, many of the digital tokens are now totally worthless, according to a 2023 study. Gamestop has also seemingly not been promoting its NFT offering on social media since September 2023. Gamestop hired a team of 20 to handle its NFT marketplace, and it remains unclear if there will be internal layoffs since the primary function of the product has now been axed.
Whether this spurs more gaming-focused companies to abandon the idea of utilizing NFTs in-game remains to be seen. But, until then, it appears that Gamestop’s NFT focus is winding down.