GameStop, the American gaming merchandise retailer, has announced that it will be terminating its cryptocurrency wallet program starting from November 1, 2023. The company had introduced these wallets in the spring of last year, allowing users to manage their digital assets and non-fungible tokens (NFTs).
In an official statement on its website, GameStop cited “regulatory uncertainty of the crypto space” as the reason for removing its iOS and Chrome Extension wallets. The company advised all customers to ensure they have access to their secret passphrase by October 1, as this will be necessary for account recovery in any compatible wallet.
Last year, GameStop had launched its self-custodial wallet, providing customers with the ability to send, receive, store, and use cryptocurrencies and NFTs directly through their web browsers. The company further expanded its presence in the crypto space by introducing an NFT marketplace built on the Ethereum layer 2 network, Loopring L2.
However, the interest in digital collectibles, including NFTs, has seen a decline in recent years. Despite the emergence of new marketplaces, such as Blur, the current trading volume of NFTs is far from the peak levels witnessed in 2021 and 2022.
In addition to its crypto wallet program, GameStop had formed a partnership with the American subsidiary of FTX, a now-bankrupt cryptocurrency exchange, in September 2022. As part of the agreement, GameStop had planned to introduce its customers to the FTX.US community and offer gift cards from the marketplace in select stores across the United States. However, following FTX’s filing for bankruptcy protection, GameStop terminated the partnership and assured users of full refunds.
This move by GameStop to terminate its crypto wallet program highlights the challenges posed by regulatory uncertainty in the crypto space. It remains to be seen how other companies and retailers will navigate this evolving landscape.
