GameStop abandons cryptocurrency wallets

02.08.2023

GameStop Corp. said it is discontinuing support for its cryptocurrency wallets, citing “regulatory uncertainty.”

According to the company’s website, the iOS and Chrome Extension wallets will be discontinued on Nov. 1. The wallets allowed users to manage their cryptocurrencies and non-functional tokens – such as digital images of monkeys and penguins – and use decentralized applications on Ethereum.

The removal of these wallets is a sign that GameStop is moving away from its cryptocurrency strategy, which was part of a broader push into digital services by its chairman in an attempt to turn around the struggling video game retailer.

The company launched its NFT trading platform a year ago, just as the speculative frenzy around digital tokens was winding down. Since then, prices and demand for NFT have fallen even lower, and competition between NFT trading platforms has increased.

GameStop did not respond to a request for comment. The company did not mention NFT or cryptocurrencies during a recent investor communication.

Agencies such as the Securities and Exchange Commission, the Commodity Futures Trading Commission and the Department of Justice have redoubled their efforts to crack down on cryptocurrencies. The SEC chairman has repeatedly stated that most tokens are actually securities. A couple of recent court cases have produced conflicting rulings on whether this is the case.

GameStop, which has struggled to adapt to the changing habits of gamers who are increasingly shopping online, continues to see a change in leadership, with the CFO resigning effective August 11. Two CEOs have left the company in the past two-plus years.