In this week’s newsletter, get the community reaction to X (formerly Twitter) removing support for NFT profile pictures and how gaming retailer GameStop is closing its nonfungible token (NFT) marketplace. In other news, find out how NFTs can make a comeback after the approval of spot Bitcoin (BTC) exchange-traded funds (ETFs) in the United States and how BRC-20 tokens and Bitcoin Ordinals were an “important narrative” for Bitcoin in 2023.
X removes NFT profile pictures: What does this mean for crypto art?
Social media platform X removed support for NFTs almost a year after its launch. The removal of NFTs sparked responses from community members on what it would mean for the NFT space.
Many community members brought up the issue of fake accounts and scams on X, voicing their disagreement with the move. One X user described removing NFT profile pics as “another black eye” for the space.
GameStop to shut down NFT marketplace due to regulatory limbo
Video game retailer GameStop announced that it will shut down its NFT marketplace on Feb. 2, 2024. By then, their users will be unable to buy, sell or mint NFTs. However, the gaming retailer highlighted that the NFTs will remain on the blockchain and be accessible and tradeable through other NFT platforms.
GameStop said that a lack of regulation was the reason it reduced its crypto efforts. “GameStop has decided to wind down our NFT marketplace due to the continuing regulatory uncertainty of the crypto space,” the retailer noted on its website.
NFTs eye comeback following spot Bitcoin ETF approval
The U.S. Securities and Exchange Commission (SEC) approval of spot Bitcoin ETFs sparked many discussions, including its effect on the dwindling NFT space.
Cypher Capital chairman Bill Qian said that NFTs stand to indirectly benefit from the approvals as understanding and acceptance of Bitcoin will “likely spill over.” Meanwhile, Atlas Development (Enjin) executive Oscar Franklin Tan said it would affect NFTs simply because Bitcoin has its own NFT ecosystem powered by Bitcoin Ordinals.
BRC-20 growth an “important narrative” for Bitcoin in 2023 — Binance Research
A recent report published by Binance Research highlighted that the growth of BRC-20 tokens, which use the Bitcoin Ordinals protocol’s inscriptions to form its token standard, is an important narrative for Bitcoin.
While many argued about the place of NFTs in the Bitcoin ecosystem, a Binance Research spokesperson told Cointelegraph that Bitcoin is decentralized and can be used as the community decides. The spokesperson said it’s not for one person or group to say what the tech is for.
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Thanks for reading this digest of the week’s most notable developments in the NFT space. Come again next Wednesday for more reports and insights into this actively evolving space.