GameStop to wind down crypto initiatives after third-quarter losses

The American video-game retailer GameStop, for the third quarter, recorded a net loss of $94.7 million. Management said it would abandon plans related to digital assets.

The company carried out its third round of layoffs this year, largely affecting blockchain and NFT specialists, according to Axios.

“Although we still believe there is long-term potential for digital assets in the gaming world, we did not risk and will not risk significant shareholder capital in this space,”— said CEO Matt Furlong.

The executive said the company had “minimised the risks of cryptocurrency price swings” over the year and “currently has no material investments.”

The comment contrasts with GameStop’s stance in June, when digital assets, NFTs and Web3 applications were identified by management as opportunities for business growth.

The company intends to achieve profitability and sustained growth in the long run by expanding its product range in video games, collectibles and used items in its assortment.

GameStop intends to “implement launched initiatives related to digital assets and blockchain technology.”

In September, the GameStop chain became the primary retail partner of FTX US in the United States. On November 11, the collaboration ceased amid the platform collapse.

In November, GameStop added on its NFT marketplace for Ethereum-Layer-2 protocol from Immutable.

The American company introduced a beta version of the platform in March. The basis for the marketplace was the Loopring L2 solution. Initially, the American company announced the use of Immutable’s solution.

The full launch of NFT marketplace occurred in July.

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