The enthusiasm for NFTs is quickly collapsing and several companies have decided to pull out of said market. GameStop, the popular video game retailer, has just joined the list, as it confirmed that it will close its digital collectibles store due to the uncertainty of the crypto market.
GameStop pulls out of NFTs after failure
GameStop entered the non-fungible token market in May 2022, when it introduced a store for buying and selling digital collectibles. The company was going through one of its worst moments, so it hoped that this start-up business would help it improve its numbers.
However, the NFT market has slowly collapsed, so the company decided it's time to abandon it. Via a statement, GameStop reported that it will close its NFT store early next month.
"GameStop has decided to wind down our NFT marketplace due to the continuing regulatory uncertainty of the crypto space. Effective as of February 2, 2024, customers will no longer be able to buy, sell or create NFTs," the company stated.
In the statement, it clarifies that the people who supported this initiative will be able to continue accessing its content, which they will be able to market on other platforms. Months ago, the company stopped supporting several of its NFT-related services, and now its store's days are numbered.
The sale of digital collectibles also generated some problems for the company, as it sold NFTs that were quite controversial. In addition, we know that marketed non-fungible tokens of indie games without the developers' authorization.
That said, GameStop's NFT initiative was a resounding failure and yet another stumble to add to the company's track record. For now, it is unknown what will happen to the rest of its crypto business, but it is likely to be dismantled as well.
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