GameStop Retreats from Crypto, Shuts NFT Market

GameStop, once a major player in the gaming retail industry, has decided to close its NFT marketplace which launched in July of 2022. This move, effective from February 2, marks the end of the company’s venture into the cryptocurrency space. The closure is attributed to the “continuing regulatory uncertainty of the crypto space,” mirroring the reasons given for the previous termination of their crypto wallet. Although the marketplace will no longer support buying, selling, or creating new assets, users can still access their existing assets through other platforms on the blockchain.

The retailer, known for its significant presence in physical game sales, has faced challenges adapting to the rise of ecommerce and digital distribution. Despite a brief resurgence in popularity due to a Reddit-driven surge in its stock price in 2021, GameStop’s fortunes have continued to decline. This stock price phenomenon even inspired a film with a notable cast, highlighting the unusual nature of the event.

In an attempt to diversify and innovate, GameStop jumped on the NFT bandwagon during the peak of the trend in 2021 and 2022, a period that saw numerous companies and celebrities exploring the digital asset market. Despite these efforts, the company continued to struggle financially, leading to the dismissal of CEO Matthew Furlong in June of the previous year.