The cryptocurrency space has been shaken by the news of these 2 'shutdowns'!

In a significant development, the Venezuelan government has announced that it will stop its national cryptocurrency, the Petro (PTR), from January 15. Launched in 2018 in response to U.S. sanctions and economic hardship, the Petro has struggled to gain widespread acceptance with domestic and international hurdles when faced with both situations. The decision comes amid reports of Petro's limited accessibility and inability to establish itself as a widely used cryptocurrency. At this time, another "closing" announcement came. GameStop has announced that it will be shutting down its NFT marketplace.

The journey and limited use of the cryptocurrency Petro

Introduced to circumvent the sanctions and economic pressures of the United States, the Petro faced an uphill battle from its inception. Despite the fact that it was created by presidential order, the opposition of the parliament and various difficulties prevented its adoption. Initially launched as a potential economic lifeline, the oil-backed cryptocurrency has never gained traction both domestically and internationally. The official announcement of Petro's closure was reportedly made on the cryptocurrency-specific, government-run website.

Au Venezuela, échec et fin de la cryptomonnaie d'État, le petro pic.twitter.com/jSoRAMuvIb

— BFM Crypto (@BfmCrypto) January 12, 2024

Unfortunately, the website is inaccessible at the time of writing, raising questions about the transparency of the decision. Petro is primarily traded in the administrative section of the Venezuelan Patria website, which can only be accessed by password, which limits its access. Although Petro achieved full functionality in 2020, it could not gain a place in the international market. Despite the Maduro government's efforts to introduce him to the member states of the Bolenist Alliance for the Peoples of the Americas, Petro remained largely within Venezuela's borders. The coin was never recognized as legal tender, which further hampered its widespread adoption.

Legal issues

Petro's death was not only linked to domestic difficulties, but also faced international scrutiny. Legal issues have come to the fore with the National Audit of Cryptocurrencies, the agency that oversees Petro. The agency's president, Joselit Ramirez Camacho, faced charges of financial irregularities and links to the international narcotics trade, which led to his arrest in March 2023.

Ramirez Camacho's arrest has led to the closure and reorganization of the National Cryptocurrency Supervisory Authority, whose closure has been extended until March 2024. The investigation had broader implications and resulted in the closure of crypto exchanges and mining operations in the country, signaling a broader impact on Venezuela's situation. Despite these challenges, the Petro continued its operations without achieving central bank digital currency (CBDC) status. The Central Bank of Venezuela's plans to introduce a CBDC in 2021 never materialized, and the Petro remains the country's primary attempt to drive the global economic landscape through cryptocurrency.

GameStop will phase out its NFT marketplace

Leading gaming retailer GameStop has announced a phased closure of its non-fungible token (NFT) marketplace, citing regulatory uncertainty as the primary reason. The ruling, which will take effect from February 2, 2024, underscores the challenges faced by companies operating in the crypto space amid evolving regulatory environments. Despite this move, GameStop assures users that their existing NFTs will continue to be accessible and sellable through other platforms.

GameStop cites regulatory uncertainty as the driving force behind its decision to shut down the NFT marketplace, which marks another decline in crypto offerings. This decision is in line with a broader trend of regulatory concerns affecting companies in the crypto industry. In an official statement on GameStop's website, the company announced its intention to phase out the NFT marketplace due to ongoing regulatory uncertainties in the crypto space. The decision comes despite the U.S. Securities and Exchange Commission's (SEC) recent approval of 11 spot Bitcoin exchange-traded funds (ETFs), which sends mixed signals regarding regulatory attitudes.

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