{"id":20570,"date":"2023-08-02T20:05:24","date_gmt":"2023-08-02T20:05:24","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/nft\/gamestop-retreats-from-nft-space-ending-support-for-wallet\/"},"modified":"2023-08-02T20:05:24","modified_gmt":"2023-08-02T20:05:24","slug":"gamestop-retreats-from-nft-space-ending-support-for-wallet","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/nft\/gamestop-retreats-from-nft-space-ending-support-for-wallet\/","title":{"rendered":"GameStop Retreats from NFT Space, Ending Support for Wallet"},"content":{"rendered":"
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GameStop recently announced its decision through a pop-up message on its NFT marketplace to discontinue support for its proprietary crypto wallet, GameStop Wallet, which doesn\u2019t really come as much surprise.\u00a0<\/p>\n

The wallet itself was introduced to the public in May 2022 to support NFT trading through the retailer\u2019s native NFT marketplace.<\/p>\n

While the video game retailer\u2019s move is underpinned by the regulatory uncertainty of the crypto space as among the SEC, CFTC, and lawmakers, GameStop has been publicly hinting that this would ultimately be coming down the pipeline.<\/p>\n

Since GameStop took its first steps into the NFT world back in Q2 2022 with the debut of its own marketplace that would support crypto-based games, its commitment to the crypto space and the further development of initiatives gradually diminished in efforts to protect stockholders financial interests. It also partnered with the now fallen FTX crypto exchange platform last September.<\/p>\n

However, the public launch of its NFT marketplace was met with mixed reactions, where some users had taken to Twitter to express their disappointment in what appeared to be an \u201caggressive Web3 strategy.\u201d<\/p>\n

Support will end in November<\/h2>\n

According to the pop-up message, GameStop will discontinue its wallet support on November 1, which includes the iOS mobile app and the Google Chrome web browser extension. GameStop customers and users have been advised to back up their wallet\u2019s secret passphrase by October 1, in anticipation of the impending shutdown.\u00a0<\/p>\n

However, the official \u201cX<\/a>\u201d account for GameStopNFT hasn\u2019t shared anything to this effect, with its most recent tweet<\/a> posted on August 1, as of press time.<\/p>\n

Unfortunately, the lack of leadership and willingness by SEC Chair Gary Gensler to really help push forward clearer guidelines and insight, has come to the detriment of industry participants and investors. Gensler\u2019s priority for the past several years has been to continue down a futile path of enforcement actions that seek only to penalize without offering up any guidance behind those decisions.<\/p>\n

Company layoffs<\/h2>\n

The discontinuation of the wallet, however, is not the only significant change at GameStop.\u00a0<\/p>\n

Roughly two months ago, the company parted ways with CEO Matt Furlong who was initially hired to help facilitate the wallet\u2019s and marketplace\u2019s launch. Furlong\u2019s tenure not only witnessed the launch of both the wallet and NFT marketplace, but also GameStop\u2019s fruitful partnership with the Ethereum scaling network, Immutable X. The partnership had promised a $100 million incentives fund dedicated to developers working on the network.<\/p>\n

Although, even before his departure, Furlong had hinted at a shift in GameStop\u2019s strategy during a December 2022 earnings call where he mentioned that GameStop would not be committing significant shareholder capital to the crypto sector.\u00a0<\/p>\n

GameStop\u2019s journey has been marked by several challenges and transformations. With over 4,400 physical stores operational worldwide as of January, the company has grappled with the evolving dynamics of the video game industry, which is steadily moving towards these types of digital platforms.\u00a0<\/p>\n

Reports from December 2022 indicated that GameStop had laid off several employees, including those working on crypto wallet engineering. This move aligned with Furlong\u2019s statements about the company\u2019s changing focus and its gradual distancing from both the crypto and NFT arenas.<\/p>\n

As the crypto industry continues to navigate regulatory challenges and the broader market dynamics shift, GameStop\u2019s decision underscores the complexities businesses face when integrating digital assets into their operations, and whether it\u2019s a good financial investment to \u201cget in early\u201d with these emerging technologies.<\/p>\n<\/p><\/div>\n