GameStop suspends operation of Web3 wallet, saying supervision is uncertain

Announcement of abandoning Web3 wallet

According to the latest news, GameStop announced the suspension of operating Web3 wallet, saying that the uncertainty of regulatory policies was the main reason for this decision . This news triggered widespread attention and discussion in the industry. As an important part of blockchain games, Web3 wallet has high hopes from many people. However, GameStop's decision gave people an unexpected blow. In this article, php editor Xinyi will explain the reasons behind GameStop’s decision and discuss the future development trends of blockchain games.

Under the leadership of CEO Furlong, Gamestop Wallet launched in May last year. This wallet allows users to manage their cryptocurrencies and NFTs and trade them on the GameStop NFT Marketplace.

GameStop launched its NFT market in June 2022, initially focusing on digital collectibles such as art and PFP. Later, they began to expand support for Web3 games based on Ethereum Layer2 ImmutableX. In just two days, the market’s trading volume reached approximately $3.5 million, nearly doubling the historical trading volume of the Coinbase NFT market. However, as the speculation frenzy in the NFT market subsides and competition in other NFT trading markets intensifies, GameStop's NFT market has gradually lost its former glory.

Once famous for fighting against Wall Street

In 2021, the Wallstreetbets version of the American online forum Reddit triggered a war between GameStop (GME) retail investors and institutions, which made GameStop He became famous in one fell swoop and was continuously reported by the mainstream media "Forbes" and "CNBC". Through the collective actions of netizens, they successfully conducted short trades against Wall Street institutions, causing huge losses to the institutions. Some large hedge funds even had to raise additional funds to cope with huge losses. The incident demonstrated the power of individual investors through collective action to have a significant impact on financial markets.

In early January 2021, GameStop’s share price was less than US$20. In the next month, it soared more than 1,700%, with the stock price reaching US$347.51, and the company’s market value also jumped to US$24.2 billion.

Although GameStop achieved its first profit in two years in its financial report at the beginning of this year, as popularity declined and subsequent profits were not as good as expected, the stock price began to fall, and is currently quoted at $21.5.

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