GameStop recently announced its decision via a pop-up message on its NFT marketplace to drop support for its own crypto wallet, GameStop Wallet, which comes as no surprise.
The wallet itself was introduced to the public in May 2022 to support NFT trading through the retailer’s own NFT marketplace.
While the video game retailer’s move has been bolstered by the regulatory uncertainty of the crypto space, such as with the SEC, CFTC, and lawmakers, GameStop has publicly hinted that it would eventually come down the pipeline.
Ever since GameStop took its first steps into the NFT world in the second quarter of 2022 with the debut of its own marketplace that would support crypto-based games, its commitment to the crypto space and further development of initiatives has gradually waned in attempts to protect the financial interests of shareholders . It also partnered with now-fallen crypto exchange platform FTX last September.
However, the public launch of the NFT marketplace has met with mixed reactions, with some users taking to Twitter to voice their disappointment at what appears to be an “aggressive Web3 strategy”.
Support ends in November
According to the pop-up message, GameStop will end its wallet support, including the iOS mobile app and the Google Chrome web browser extension, on November 1. GameStop customers and users have been advised to back up their wallet secret passphrases before October 1 in anticipation of the impending shutdown.
But the officialX” account for GameStopNFT has not shared anything about this, with most recent tweet posted on August 1, at the time of going to press.
Unfortunately, SEC Chairman Gary Gensler’s lack of leadership and willingness to actually help bring forward clearer guidance and insight is to the detriment of industry participants and investors. Gensler’s priority for the past few years has been to continue down a futile path of enforcement measures designed only to punish without providing any guidance behind those decisions.
Fired from the company
However, the discontinuation of the wallet is not the only significant change at GameStop.
About two months ago, the company parted ways with CEO Matt Furlong, who was initially hired to facilitate the launch of the wallet and marketplace. Furlong’s tenure not only witnessed the launch of both the wallet and the NFT marketplace, but also GameStop’s fruitful partnership with the Ethereum scaling network, Immutable X. The partnership had promised a $100 million stimulus fund for developers who join the network. to work.
Although even before leaving, Furlong had hinted at a shift in GameStop’s strategy on a December 2022 earnings call, mentioning that GameStop would not commit significant shareholder capital to the crypto sector.
GameStop’s journey has been marked by several challenges and transformations. With more than 4,400 brick-and-mortar stores up and running worldwide as of January, the company has struggled with the evolving dynamics of the video game industry, which has been steadily moving towards these types of digital platforms.
December 2022 reports revealed that GameStop had laid off several employees, including those who worked on the engineering of crypto wallets. This move was consistent with Furlong’s statements about the company’s shifting focus and gradual distance from both the crypto and NFT arenas.
As the crypto industry continues to navigate regulatory challenges and the broader shift in market dynamics, GameStop’s decision underscores the complexity companies face in integrating digital assets into their operations, and whether it is a sound financial investment. is to “get in early” with these emerging technologies.