GameStop to stop with cryptocurrency initiatives post Q3 losses worth $94.7 million | The Financial Express

GameStop to stop with cryptocurrency initiatives post Q3 losses worth $94.7 million

According to Cointelegraph, GameStop was looking at cryptocurrency, alongside non-fungible tokens and Web3.0 applications, on account of growth by calling these areas “increasingly relevant for gamers of the future”

GameStop to stop with cryptocurrency initiatives post Q3 losses worth $94.7 million
Reportedly, GameStop’s Q3 losses went down in comparison to Q2, which sustained losses worth $108.7 million

Gaming retailer GameStop stated its aim to no longer focus on cryptocurrencies, posting $94.7 million in net losses for the third quarter and laying off staff from its digital assets section, as reported by Cointelegraph.

“Although we continue to believe there is long-term potential for digital assets in the gaming world, we have not and will not risk meaningful stockholder capital in this space,” Matt Furlong, CEO, GameStop, stated.

According to Cointelegraph, earlier, GameStop was looking at cryptocurrency, alongside non-fungible tokens (NFTs) and Web3.0 applications, on account of growth by calling these areas “increasingly relevant for gamers of the future.” In the future, the platform aims to make the transition to collectibles, games and pre-owned items. Insights from a December 7, 2022, filing with the Securities and Exchange Commission (SEC) stated that the platform’s moves in the NFT scenario as it says its “also pursuing, and plan to continue to pursue, other business and strategic initiatives associated with digital assets and blockchain technology.” 

On the basis of information by Cointelegraph, GameStop has pushed for Web3.0-based products, with the recent being its NFT marketplace that went live on ImmutableX, an Ethereum layer-2 blockchain, on October 31, 2022, after a July public beta. In May, 2022, the platform unveiled its beta self-custody cryptocurrency wallet and beta NFT marketplace on Loopring in March, 2022. 

Moreover, Cointelegraph noted that GameStop entered into a partnership with FTX cryptocurrency exchange in September, 2022, with the aim to bring in more customers and working together on e-commerce and online marketing initiatives. On November 11, 2022, the platform ended ties with the exchange post its bankruptcy update. Reportedly, GameStop’s Q3 losses went down in comparison to Q2, which sustained losses worth $108.7 million.

(With insights from Cointelegraph)

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First published on: 09-12-2022 at 17:11 IST