GameStop Decides to Shut Down NFT Wallet Citing Regulatory Uncertainty
Popular video game retailer GameStop has announced plans to shut down its NFT wallet due to regulatory uncertainty in the crypto space.
According to a pop-up message on its NFT marketplace, GameStop would cease support for the wallet starting November 1.
"Due to the regulatory uncertainty of the crypto space, GameStop has decided to remove its iOS and Chrome Extension wallets from the market on November 1, 2023," the pop-up message reads.
The video game retailer asked customers to make sure they have access to their Secret Passphrase by October.
"Any customer with access to their Secret Passphrase has the ability to recover their account in any compatible wallet," the company added.
The move marks a U-turn in GameStop's plans to support crypto games and launch its own marketplace.
The development also comes shortly after the video game retailer fired CEO Matt Furlong, who had been in charge during the launch of the wallet and marketplace.
Furlong had previously said that GameStop was distancing itself from NFTs and crypto, stating during an earnings call in December 2022 that the company would not risk significant shareholder capital in the crypto industry.
GameStop's decision to shut down its NFT wallet is another sign of its shifting focus away from the digital assets space.
The company has faced several rounds of layoffs in recent years as the video game industry moves toward digital delivery.
It is worth noting that GameStop still operates over 4,400 physical stores worldwide and remains a significant player in the video game industry.
The regulatory uncertainty cited by GameStop is a familiar explanation for the drawdown or cancellation of digital assets initiatives.
The company's decision reflects recent developments
Read more on cryptonews.com
