GameStop Retreats from Crypto Space, Shuts Down NFT Marketplace Amid Regulatory Hurdles
GameStop has decided to shut down its NFT marketplace, signaling its withdrawal from the cryptocurrency space.
The announcement, made via a statement on the platform, cites “the continuing regulatory uncertainty of the crypto space” as the primary reason behind this decision.
GameStop’s NFT marketplace was officially launched on Halloween in 2022, with a focus on gaming assets and a partnership with ImmutableX, an Ethereum layer 2 blockchain solution.
The move comes as GameStop continues its gradual exit from the cryptocurrency arena, following the discontinuation of its crypto wallet back in August.
The company assured its customers that they will still have the option to sell their NFTs on alternative marketplaces, as these digital assets are fundamentally hosted on the blockchain and not tied exclusively to any single platform.
The closure of GameStop’s NFT marketplace may not come as a shock to industry observers, given its relatively low impact on the overall NFT trading landscape.
In fact, the marketplace’s X account had remained inactive since September of the previous year.
Nevertheless, the decision represents a noteworthy shift for GameStop, which had attempted to engage its loyal retail trader community through its venture into the world of Web3 in 2022.
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 in the crypto industry, particularly the increase in enforcement actions by the United States Securities and Exchange Commission (SEC) under the leadership of Chair Gary Gensler.
Back in June, the commission sued both Binance, the world’s largest cryptocurrency exchange, and Coinbase
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