GameStop (GME) NFT Marketplace to shutter on February 2, 2024
GameStop NFT Marketplace will shutter on Februrary 2.
GameStop has quietly announce the closure of the company's NFT Marketplace. The online cryptocurrency-based store will shutter on February 2, 2024.
The company announced the upcoming closure on the NFT Marketplace website. "
GameStop has decided to wind down our NFT marketplace due to the continuing regulatory uncertainty of the crypto space.
Effective as of February 2, 2024, customers will no longer be able to buy, sell or create NFTs. Your NFTs are on the blockchain and will remain accessible and saleable through other platforms.
Tonight's news of GameStop's NFT Marketplace closing down should not come as a surprise to anyone paying attention to the NFT space. The market for monkey pictures has crashed sinced the mania of 2021. GameStop had already shutdown the crypto Wallet project, so shuttering the NFT storefront is the next logical step. The company cites "continuing regulatory uncertainty of the crypto space" as the reason for the NFT Marketplace's closure. Custoerms will no longer be able to buy, sell, or create NFTs, but existing NFTs will remain accessible and saleable on other platforms.
This is undoubtedly a blow to many GameStop shareholders heading into the third anniversary of Wall Street brokers, dealers, and market makers shutting off the buy button on GME shares. The GameStop NFT Marketplace didn't even last two full years, and many analysts are uncertain about where CEO Ryan Cohen's latest Investment Policy pivot will lead the company.
GameStop's stock is down over 87% since hitting an all-time high of $120.75/share in January 2021, and while the company's board of directors was smart enough to raise cash and pay off its long-term debts, a concrete turnaround plan has yet to completely materialize.
This article is only meant for educational purposes, and should not be taken as investment advice. Please consider your own investment time horizon, risk tolerance, and consult with a financial advisor before acting on this information.
Full Disclosure:
At the time of this article, Shacknews primary shareholder Asif A. Khan, his family members, or his company Virtue LLC had the following positions:
Long GameStop via GME shares
Long GameStop via GME call options
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replyAsif Khan posted a new article, GameStop (GME) NFT Marketplace to shutter on February 2, 2024
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Who could have foreseen this
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Manual lol
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GameStop's stock is down over 87% since hitting an all-time high of $120.75/share in January 2021, and while the company's board of directors was smart enough to raise cash and pay off its long-term debts, a concrete turnaround plan has yet to completely materialize.
It’s almost like they don’t have one-
The company has been returning positive cash flows because of an extra large commercial paper/treasury holding.
That isn’t a business model, but it certainly throws a wrench into the bear thesis of imminent bankruptcy.
The new Investment Policy allows the CEO to deploy the remaining $900 billion of cash in investments.
I just wouldn’t say it is completely over for the stock just yet, but the underlying retail business is certainly in trouble and has been for years.-
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What happened is I made 5k in a day woo! A bunch of redditors still holding to this day and waiting for that next short squeeze…
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The stock currently has over 20% short interest. Insiders own 13% and 26% of the shares are owned by directly registered shareholders. While the short interest is nowhere near the 120-220% levels that exacerbated the January 2021 squeeze, a 20% short interest is rather large and can lead to further volatile moves if the company turns a profit/continues to have positive cash flows.
Regarding the conspiracy theory that shorts never covered, the SEC and Congress trading data report from 2021 didn't explain how the short interest fell in January-February 2021. This is likely due to most of the short covering volume happening off exchange or in dark pools when the buy button was shut off. That is something that many GME investors remain fixated on.
In my opinion, the stock is a call option on the company not going bankrupt. The lower the share price, the more compelling that bet becomes. If the statement of cash flows and income statement continue to trend the way they have been, I simply don't see the company as a going concern.
That may not be a reason for most people to own the stock, especially with its still elevated valuation, but I maintain a speculative position.
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So a bunch of kids on reddit buy cheap stock in GameStop as a get rich quick scam gamble, it works, the early buyers sell, the later adopters are stuck and nobody else realizes this was just a joke, right?
Or was GameStop’s turn around a legitimate “we gotta rally and save this pillar of the community” thing?-
From speaking with many present day GME shareholders, there is still a sense of trying to screw over Wall Street at the core of their investment theses. A stubborn shareholder base that won't sell can be more valuable than a lot of people think. It already helped GameStop raise money to pay off debts, which has definitely bought some time for the board and management. How much time is a function of the cash flow burn rate, which has been trending the wrong way for the bears.
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