GameStop, the prominent American gaming merchandise retailer, has announced its decision to remove its cryptocurrency wallets from the market starting November 1, 2023. These wallets were launched in the spring of the previous year, allowing users to manage digital assets and non-fungible tokens (NFTs). In a statement on its official website, GameStop attributed the removal to the “regulatory uncertainty of the crypto space.”
GameStop’s iOS and Chrome Extension wallets will be discontinued as of the beginning of November. However, the company has emphasized the importance for all clients to have access to their secret passphrase by October 1. This access will enable them to recover their account using any compatible wallet. The introduction of GameStop’s self-custodial wallet in May the previous year provided customers with the ability to send, receive, store, and use crypto assets and NFTs through decentralized applications, all within their web browsers.
While GameStop ventured into the NFT market and, in a bid to expand its offerings, launched an NFT marketplace on the Ethereum layer 2 network Loopring L2, the interest in digital collectibles has waned over the past few years. Despite the emergence of new marketplaces like Blur, which quickly gained popularity, the current trading volume of NFTs falls far short of the peaks reached in 2021 and 2022.
Partnership with FTX.US
In a move to diversify its services, GameStop partnered with the American subsidiary of the now-bankrupt cryptocurrency exchange FTX in September 2022. The collaboration aimed to introduce GameStop’s customers to the FTX.US community and provide gift cards from the marketplace in select stores across the United States. However, following the exchange’s filing for bankruptcy protection, GameStop terminated the partnership and assured users of full refunds for any affected purchases.
Termination of Ties
The fallout from the collapse of FTX.US also affected other entities in the gaming industry. Esports giant TSM and video game developer Riot Games both severed their ties with the platform in the subsequent months.
GameStop’s decision to remove its cryptocurrency wallets from the market starting November 1, 2023, marks a shift in its approach to the crypto space. The company cites regulatory uncertainty as the primary reason for this decision. Additionally, the dwindling interest in NFTs has further influenced this change. Despite its brief foray into the NFT market and partnerships with FTX.US, GameStop remains committed to providing the best possible experience for its customers, ensuring full refunds and exploring new avenues in the gaming industry.
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