GameStop Says Goodbye to NFT Marketplace: A Web3 Watch Update

GameStop is shuttering its NFT marketplace on Feb. 2 due to “the continuing regulatory uncertainty of the crypto space,” the gaming giant announced via a website banner.

GameStop removed support for its NFT wallet in November for the same reason. The news continues a trend of major companies losing interest in NFTs following social media platform X’s decision to end its NFT profile picture feature last week.

GameStop began teasing an NFT marketplace in May 2021 — shortly after a retail-led short squeeze ballooned the struggling stock’s price. The platform launched in July 2022, becoming a top-ten marketplace that summer. It saw $6 million in volume in its first two months.

The traction wasn’t sticky, though: The site has seen roughly $40,000 in volume over the past month.

As part of its erstwhile NFT push, GameStop received a grant from gaming layer-2 Immutable to set up a $100 million gaming NFT fund. GameStop sold a large number of its tokens from the deal.

GameStop was also integrated with the layer-2 Loopring.

Notably, Blockworks reported this week that despite a down 2023 for NFTs, gaming is a promising sector for a future of utility-focused NFTs. GameStop apparently doesn’t agree.

Austin-based gaming platform Nifty Island released the beta version of its open-world game on Wednesday. The game gives users islands where they can play as 3D renderings of their NFT avatars.

Nifty Island is the latest Web3 game to try bringing utility to NFTs — in this case, allowing NFT holders to port their collectibles to the metaverse.

“As you might wear your favorite shirt to express yourself or bring your lucky mitt to play baseball with friends in the real world, I think the same applies in gaming, and we are at the cusp of a paradigm shift which will change the way we play,” Nifty Island co-founder Zunk wrote on X following the release.

Nifty Island’s Web3 open-world game comes soon after Warner Bros. Discovery supported the creation of a Ready Player One-style metaverse — a once popular concept in crypto gaming that has lately fallen somewhat out of favor.

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