Gamestop's Crypto Journey Halts
In a prominent announcement on the Gamestop non-fungible token (NFT) marketplace, the company has revealed its decision to shut down the platform on February 2, 2024. This means that users of the Gamestop NFT market will no longer have the ability to buy, sell, or create NFTs.
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 move comes after Gamestop's announcement in August 2023 that it would be abandoning the Gamestop wallet project due to regulatory uncertainty in the cryptocurrency industry. The official discontinuation of the wallet service occurred in November 2023.
The company cites the same reason for closing its NFT marketplace, pointing to the ongoing regulatory uncertainty in the crypto space. In addition, the company states that starting from February 2, 2024, customers will no longer have the ability to buy, sell, or create NFTs. However, the NFTs owned by customers will still be accessible and saleable through other platforms, as stated in the pinned message on the web portal.
Meanwhile, Gamestop's overall performance has not been impressive since the Wall Street Bets phenomenon. The company has faced challenges in its traditional brick-and-mortar retail sector, largely due to the increasing preference for digital gaming and online sales. Moreover, the company'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 experienced a decline of over 37%.
Despite collaborations with Loopring and Immutable X, it seems that Gamestop's venture into the blockchain world has come to a temporary halt. The company's future direction remains uncertain, and its focus on crypto and NFT endeavors appears to have taken a backseat.
What are your thoughts on Gamestop's decision to shut down its NFT marketplace? Feel free to share your opinions and perspectives on this matter in the comments section below.
Frequently Asked Questions
What kind of IRA can you use to hold precious metals in?
Most financial institutions and employers offer an Individual Retirement Account (IRA). This is an investment vehicle that most people can use. Through an IRA, you may contribute money to an account that grows tax-deferred until withdrawn.
You can save taxes by setting up an IRA and then paying them off when you retire. This means that you can deposit more money into your retirement plan than have to pay taxes on it tomorrow.
The beauty of an IRA is that contributions and earnings grow tax-free until you withdraw the funds. When you do, there are penalties for early withdrawal.
You can also make additional contributions to your IRA after age 50 without penalty. If you decide to withdraw your IRA from retirement, you will owe income taxes as well as a 10% federal penalty.
Withdrawals before age 59 1/2 will be subject to a 5% IRS penal. Withdrawals between ages 59 1/2 and 70 1/2 are subject to a 3.4% IRS penalty.
The IRS will penalize withdrawals of more than $10,000 annually.
Are precious metals allowed in an IRA?
The answer to this question depends on whether the IRA owner wants to diversify his holdings into gold and silver or keep them for safekeeping.
He can choose to diversify if he so desires. He could either buy bars of physical gold and/or sterling from a dealer or simply sell these items back at the end. He doesn't wish to sell any of his precious metal investments. He should keep them, as they are perfectly safe to be stored in an IRA account.
Can I store my Gold IRA at Home?
An online brokerage account will allow you to invest in the most secure way possible. Online brokerage accounts offer all the same investment options and you do not need any special licenses. Additionally, investing is free.
Online brokers often offer free tools to help manage your portfolio. Online brokers will allow you to download charts so that you can see the performance of your investments.
Are precious metal IRAs a good way to invest?
How willing you are to risk your IRA account losing value will decide the answer. You can use them if your cash balance is $10,000, as long you don't expect it to grow quickly. These may not be the best option if you are looking to save for retirement over many decades and invest in assets that will increase in value (e.g. gold). These fees can reduce any gains.
Which type of IRA is the best?
When selecting an IRA for yourself, the most important thing is to find one that meets your lifestyle and goals. You need to decide whether you want to maximize tax deduction on your contributions, minimize taxes now but pay penalties later, and if you just want to avoid taxes.
The Roth option can be a smart choice if your retirement savings are limited and you don't have any other investments. If you plan to continue working beyond age 59 1/2, and pay income taxes on any account withdrawals, the Roth option may be a good choice.
If you plan to retire early, the traditional IRA might make more sense because you'll likely owe taxes on the earnings of those funds. The Roth IRA is a better option if you plan to continue working well beyond age 65. It allows you to withdraw any or all of your earnings and not pay taxes.
- You can only purchase gold bars of at least 99.5% purity. (forbes.com)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal so that you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- Silver must be 99.9% pure • (forbes.com)
- Depending on your financial situation, most experts recommend you invest no more than 5% to 10% of your retirement funds in precious metals. (forbes.com)
How to Open a Precious Metal IRA
Precious Metals are one of today's most desired investment vehicles. Because they offer higher returns than traditional investments such as stocks and bonds, they are very popular. However, investing in precious metals requires careful planning and research before purchasing. These are the first things you need to know if you're looking to open a precious metal IRA.
There are two types of precious metal accounts. They are paper gold and silver certificates (GSCs) and physical precious metals accounts. Each type comes with its own set of advantages and disadvantages. GSCs and physical precious metals accounts can offer diversification, but they are difficult to trade and easy to access. Read on to find out more.
Physical precious metals accounts are comprised of bullion and bars as well as coins. Although diversification benefits are great, this option has drawbacks. You will need to pay a lot of money for precious metals, whether you are buying, selling, or storing them. It can also be difficult to transport their large sizes from one place to the next.
The silver and paper gold certificates are also relatively affordable. They can also be traded online and are easily accessible. This makes them ideal for people who don't want to invest in precious physical metals. But they don't offer as much diversification as their physical counterparts. These assets are also supported by government agencies, such as the U.S. Mint. Inflation rates could cause their value to drop.
When opening a precious metallic IRA, make sure to choose the right account for you and your financial situation. The following are important factors to consider before opening an IRA.
- Your tolerance level
- Your preferred asset allocation strategy
- How much time will you invest?
- No matter if you intend to use the funds in short-term trading.
- Which type of tax treatment would you prefer
- Which precious metal(s) you'd like to invest in
- How liquid can your portfolio have to be
- Your retirement date
- Where you'll store your precious metals
- Your income level
- Your current savings rates
- Your future goals
- Your net worth
- Special circumstances that may influence your decision
- Your overall financial situation
- Preference between paper and physical assets
- Your willingness to take on risks
- Your ability manage losses
- Your budget constraints
- Financial independence is your goal
- Your investment experience
- Your familiarity in precious metals
- Your knowledge of precious Metals
- Your confidence in the economy
- Your personal preferences
Once you've chosen the right type of precious Metal IRA to suit your needs, it is time to open a dealer account. These dealers can be found via referrals, word-of-mouth, and online research.
Once you have opened your precious-metal IRA, it is time to decide how much you want to deposit. Each precious metal IRA account requires a minimum initial deposit. Some require only $100, while others will allow you to invest up to $50,000.
As mentioned above, you can decide how much money you want to invest in your precious metal IRA. If you're looking to build wealth over a long period, you should probably opt for a larger initial deposit. You might prefer a lower initial deposit if you intend to invest smaller amounts every month.
As far as the actual precious metals used in your IRA go, you can purchase any number of different types of investments. The most popular are:
- Bullion bars. Rounds, and gold coins.
- Silver – Rounds and coins
- Platinum – Coins
- Palladium – Bar and round forms
- Mercury – Round and bar forms
By: Jamie Redman
Title: Gamestop's Cryptocurrency Adventure Pauses: NFT Marketplace Closure Looms
Sourced From: news.bitcoin.com/gamestops-cryptocurrency-adventure-pauses-nft-marketplace-closure-looms/
Published Date: Mon, 15 Jan 2024 00:30:32 +0000