GameStop to quit Cryptocurrency after Losses in Q3
The over $90 million loss has prompted GameStop to quit its crypto adoption.
GameStop saw Significant Losses
GameStop has revealed intentions to reduce cryptocurrency exposure on its platform and is tilting toward adopting better blockchain and nonfungible token technologies on its platform. GameStop’s change comes as a backdrop of its over 90 million dollars lost to the cryptocurrency market in the third quarter of 2022. This loss occasioned significant changes in the gaming company’s operations, including the massive layoff of its digital assets staff.
At the start of the year, GameStop had increased confidence in the ability of cryptocurrencies, Web3 applications, and nonfungible tokens to scale up activities in the company. This optimism has subsequently been laid to rest following the losses made in the 3rd quarter from cryptos, currently, the gaming company tilts its concentration to pre-owned, collectables, and gaming items for the growth of its activities.
Nonetheless, GameStop revealed that it remains dedicated to exploring the opportunities in the NFTs, digital assets, and other blockchain technology-related spaces in the future.
FTX is a key part of GameStop's Failure
With numerous successes made by the gaming company in the digital assets space, GameStop intends to leverage its already existing successes with Web3 products for further growth. On October 31, 2022, the gaming platform launched its NFT marketplace on ImmutableX. In March and May 2022, the gaming platform released a beta NFT marketplace on Loopring and a beta self-custody crypto wallet respectively.
GameStop's loss in the crypto space is believed to have been caused by the fall of super crypto company FTX, which the gaming platform partnered with in September 2022, this partnership ended immediately after the FTX filed for bankruptcy in November 2022. The staff of the GameStop digital assets department was laid off in a response to the massive loss from the crypto market. It, however, remains unclear if the layoffs relate to GameStop’s NFT teams or its entire digital asset department.
