GameStop joins the growing list of businesses closing down their NFT division following a rough year for the blockchain currency.
The videogame retailer announced that it is bidding farewell to the crypto space almost two years since the platform first launched due to "continuing regulatory uncertainty," Decrpyt reported.
The NFT Marketplace will be operational until Feb. 2 but selling, buying, and creating new NFTs on the platform already stopped.
GameStop assured its customers that all digital tokens acquired through the platform will remain accessible on the blockchain through other platforms.
The announcement comes two months after GameStop shut down its crypto wallet platform. The same "regulatory uncertainty" reason was given for the closing.
NFT Value Slumps Down Over 3 Years of Rocky Trading
GameStop is not the only company that ended its NFT business three years after the crypto rush started during the pandemic.
Just this month, X axed its NFT profile feature as the platform focuses on other cryptocurrencies. Earlier in March, Meta also closed down its NFT marketplace for both Facebook and Instagram.
NFT values have been tanking since 2022 following the collapse of so-called stablecoins as several high-profile crypto firms linked to the digital currency like FTX crashed in controversies.
Recent reports showed that over 95% or 69,795 of NFTs mined now have a market cap of 0 Ether with the remaining 5% greatly devalued.
Current values for the top 1% NFTs only sit at around $6,000, a far cry from its million-dollar value during its peak in 2021.
What is Next for GameStop?
GameStop had a rough year in 2023 as the physical videogame retailer failed to compete with game publishers directly releasing their games online.
The company briefly experienced revived commerce in 2022 after Reddit users rallied to increase its stock price by 700%, which was quickly shut down after financial regulators intervened.
Its shares have also been on a downtrend after CEO Matthew Furlong, who headed its crypto business, was fired last June.
GameStop stocks closed down on Monday 3.28% lower at $14.75 per share.
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