Gamestop's Decision to Shut Down the NFT Marketplace
In a prominent announcement on the Gamestop non-fungible token (NFT) marketplace, the company has revealed its intention to close the platform on February 2, 2024. This means that users of the Gamestop NFT market will no longer be able to buy, sell, or create NFTs.
The Pause in Gamestop's Crypto Journey
The Gamestop company (NYSE: GME) is currently in the process of phasing out its NFT marketplace, as indicated by the notification displayed on the website's header. This decision follows Gamestop's announcement in August 2023 that it would discontinue the Gamestop wallet project due to regulatory uncertainty in the cryptocurrency domain. The official discontinuation of the wallet project occurred in November 2023.
The same rationale of regulatory uncertainty is cited for the closure of the NFT marketplace. The company states, "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," as conveyed in the pinned message on the web portal.
Gamestop's Challenging Performance
Since the Wall Street Bets phenomenon, Gamestop's overall performance has not been impressive. The company has faced difficulties in its traditional brick-and-mortar retail sector, primarily due to the increasing preference for digital gaming and online sales. Additionally, Gamestop's financial fundamentals, including its earnings per share (EPS) and price-to-earnings (P/E) ratio, have been less than robust. Over the past six months, GME shares have declined by more than 37%.
Gamestop's Halt in Blockchain Exploration
Following partnerships with Loopring and Immutable X, it seems that Gamestop's venture into the world of blockchain has come to a temporary halt. The company's future path remains uncertain, and its crypto and NFT initiatives appear to have taken a backseat.
What are your thoughts on Gamestop's decision to shut down its NFT marketplace? Share your opinions in the comments section below.
Frequently Asked Questions
What is the best precious metal to invest in?
This question is dependent on the amount of risk you are willing and able to accept as well as the type of return you desire. Although gold has been considered a safe investment, it is not always the most lucrative. You might not want to invest in gold if you're looking for quick returns. You should invest in silver if you have the patience and time.
If you don’t desire to become rich quickly, gold may be your best option. If you want to invest in long-term, steady returns, silver is a better choice.
Should You Invest in Gold for Retirement?
It depends on how much you have saved and if gold was available at the time you started saving. If you are unsure which option to choose, consider investing in both options.
You can earn potential returns on your investment of gold. It's a great investment for retirees.
Gold is more volatile than most other investments. Because of this, gold's value can fluctuate over time.
However, this does not mean that gold should be avoided. It is important to consider the fluctuations when planning your portfolio.
Another benefit to gold? It's a tangible asset. Gold is less difficult to store than stocks or bonds. It can be easily transported.
You can always access your gold as long as it is kept safe. Physical gold is not subject to storage fees.
Investing in gold can help protect against inflation. Gold prices are likely to rise with other commodities so it is a good way of protecting against rising costs.
It's also a good idea to have a portion your savings invested in something which isn't losing value. Gold rises in the face of a falling stock market.
Gold investment has another advantage: You can sell it anytime. You can easily liquidate your investment, just as with stocks. You don't even have to wait until you retire.
If you do decide to invest in gold, make sure to diversify your holdings. Don't put all of your eggs in one basket.
Also, don't buy too much at once. Start small, buying only a few ounces. Add more as you're able.
Don't expect to be rich overnight. It's not to get rich quickly, but to accumulate enough wealth to no longer need Social Security benefits.
Even though gold is not the best investment, it could be an excellent addition to any retirement plan.
What are the benefits of a Gold IRA?
You can save money on retirement by putting your money into an Individual Retirement Account. You can withdraw it at any time, but it is tax-deferred. You are in complete control of how much you take out each fiscal year. There are many types and types of IRAs. Some are better suited to college savings. Some are for investors who seek higher returns. Roth IRAs, for example, allow people to contribute after they turn 59 1/2. They also pay taxes on any earnings when they retire. Once they start withdrawing money, however, the earnings aren’t subject to tax again. This account is a good option if you plan to retire early.
The gold IRA allows you to invest in different asset classes, which is similar to other IRAs. Unlike a regular IRA that requires you to pay taxes on the gains you make while you wait to access them, a gold IRA does not have to do this. For people who would rather invest than spend their money, gold IRA accounts are a good option.
You can also enjoy automatic withdrawals, which is another benefit of owning your gold through an IRA. You won't have the hassle of making deposits each month. To avoid missing a payment, direct debits can be set up.
Finally, gold is one the most secure investment options available. Because it's not tied to any particular country, its value tends to remain steady. Even in times of economic turmoil gold prices tend to remain stable. Gold is a good option for protecting your savings from inflation.
How is gold taxed by Roth IRA?
Investment accounts are subject to tax based only on their current value and not the amount you originally paid. All gains, even if you have invested $1,000 in a mutual funds stock, are subject to tax.
You don't pay tax if you have the money in a traditional IRA/401k. Dividends and capital gains are exempt from tax. Capital gains only apply to investments more than one years old.
Each state has its own rules regarding these accounts. Maryland is an example of this. You must withdraw your funds within 60 calendar days of turning 59 1/2. Massachusetts allows you to delay withdrawals until April 1. And in New York, you have until age 70 1/2 . To avoid penalties, plan ahead so you can take distributions at the right time.
Who holds the gold in a gold IRA?
The IRS considers gold owned by an individual to be “a type of money” and is subject taxation.
To be eligible for the tax-free status, you must possess at least $10,000 gold and have had it stored for at least five consecutive years.
Owning gold can also help protect against inflation and price volatility, but it doesn't make sense to hold gold if you're not going to use it.
If you plan to eventually sell the gold, you'll need a report on its value. This could impact the amount of capital gains taxes your owe if you cash in your investments.
Consult a financial advisor or accountant to determine your options.
What does gold do as an investment?
The price of gold fluctuates based on supply and demand. It is also affected by interest rates.
Due to the limited supply of gold, prices for gold are highly volatile. In addition, there is a risk associated with owning physical gold because you have to store it somewhere.
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- 7 U.S. Code SS 7 – Designation of boards of trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement funds
- Do You Need a Gold IRA to Get Retirement?
- What are the Options Types, Spreads and Example. Risk Metrics
Investing with gold or stocks
Gold investing as an investment vehicle can seem extremely risky these days. The reason behind this is that many people believe that gold is no longer profitable to invest in. This belief stems from the fact that most people see gold prices being driven down by the global economy. They feel that gold investment would cause them to lose money. However, investing in gold can still provide significant benefits. We'll be looking at some of these benefits below.
One of the oldest currencies known to man is gold. There are records of its use going back thousands of years. It was used by many people around the globe as a currency store. It's still used by countries like South Africa as a method of payment.
Consider the price per gram when you decide whether you should invest in or not. You must determine how much gold bullion you can afford per gram before you consider buying it. If you don’t know the current market rate for gold bullion, you can always consult a local jeweler to get their opinion.
It's also important to note that, although gold prices are down in recent months, the costs of producing it have risen. So while the price of gold has declined, production costs haven't changed.
It is important to keep in mind the amount you plan to purchase of gold when you're weighing whether or not it is worth your time. If you plan to buy enough gold to cover your wedding rings then it is probably a good idea to wait before buying any more. It is worth considering if you intend to use it for long-term investment. Profitable gold can be sold at a lower price than it was when you bought it.
We hope that this article has helped you gain a better understanding and appreciation for gold as an investment option. Before making any investment decisions, we strongly advise that you thoroughly research all options. Only after doing so can you make an informed decision.
By: Jamie Redman
Title: Gamestop's NFT Marketplace to Close: Pausing the Cryptocurrency Adventure
Sourced From: news.bitcoin.com/gamestops-cryptocurrency-adventure-pauses-nft-marketplace-closure-looms/
Published Date: Mon, 15 Jan 2024 00:30:32 +0000