GameStop has chosen to close its NFT marketplace, indicating its departure from the cryptocurrency sector. In a statement released on the platform, the primary justification cited for this decision is “the persistent regulatory ambiguity surrounding the crypto space.”
GameStop’s NFT marketplace was initially introduced on Halloween in 2022, with a particular emphasis on gaming assets and a collaborative effort with ImmutableX, an Ethereum layer 2 blockchain solution.
This decision aligns with GameStop’s ongoing move away from the cryptocurrency realm, following the discontinuation of its cryptocurrency wallet in August.
The company has assured its customers that they will retain the ability to sell their NFTs on alternative marketplaces, as these digital assets are fundamentally hosted on the blockchain and are not exclusively tied to any one platform.
The closure of GameStop’s NFT marketplace may not come as a surprise to industry observers, given its relatively limited impact on the broader NFT trading landscape. In fact, the marketplace’s X account had remained inactive since September of the previous year.
Nevertheless, this decision signifies a significant shift for GameStop, which had aimed to engage its loyal retail trader community through its foray into the world of Web3 in 2022.
Crypto Players in the US Face Uncertain Regulatory Environment
GameStop’s reference to regulatory uncertainty is a common explanation for the scaling back or discontinuation of digital asset initiatives.
The company’s decision mirrors recent developments in the cryptocurrency industry, particularly the surge in enforcement actions initiated by the United States Securities and Exchange Commission (SEC) during Chair Gary Gensler’s tenure.
In June, the SEC filed lawsuits against both Binance, the world’s largest cryptocurrency exchange, and Coinbase, the largest cryptocurrency exchange based in the US. Additionally, the SEC has taken enforcement measures against crypto exchanges Kraken and Bittrex, as well as the crypto lending platform Nexo, all in the previous year.
Furthermore, Gensler has expressed concerns about the prevalence of fraud in the crypto market, highlighting the existence of “far too many” bad actors.
Gensler emphasized that crypto investors should not assume they have the same protections as those provided by securities laws, even though these laws apply to many cryptocurrencies. He pointed out, “US investors are not receiving comprehensive, equitable, and truthful disclosures. Moreover, the platforms and intermediaries are engaging in practices that we would never permit or expect from traditional stock exchanges like the New York Stock Exchange or Nasdaq.”
More recently, following a 3-2 vote by SEC commissioners, with Gensler in favor, regarding the allowance of spot Bitcoin ETFs, the SEC Chair once again expressed his reservations about cryptocurrencies. He stated, “While we have granted approval for the listing and trading of specific spot Bitcoin ETP shares, we have not given our approval or endorsement to Bitcoin itself.” He also cautioned investors to exercise caution and remain vigilant regarding the risks associated with Bitcoin and crypto-related products.
