In the announcement, GameStop stated that customers have a little over a fortnight left to utilize the NFT platform, after which they will no longer be able to purchase, sell, or create collectible tokens. However, existing NFT owners will still have access to their tokens and can trade them on alternative platforms.
GameStop attributed the closure of its NFT trading platform to the ambiguous nature of industry regulations. CEO Matt Furlong expressed the company’s ongoing faith in cryptocurrencies but emphasized its commitment to protecting the investments of its users from potential risks.
“We recognize the long-term potential of digital assets in the gaming industry. However, our priority is not to jeopardize our users’ funds,” Furlong stated.
The NFT trading platform was launched by GameStop in July 2022. In December 2022, the company revealed its decision to discontinue cryptocurrency investments following a third-quarter net loss of $94.7 million. Additionally, staff reductions were made in GameStop’s digital assets division.
It is worth noting that Hester Peirce, a Commissioner at the US Securities and Exchange Commission (SEC), has previously urged the agency to provide clarity regarding the classification of NFTs as securities.