GameStop is a retailer of video games and has now entered non-fungible token (NFT) market. The Wall Street Journal reports that GameStop is creating a division in order to create a market for NFT tokens, and to form partnerships with cryptocurrency firms.
GameStop to Build NFT Marketplace
According to the WSJ, more than 20 employees have been hired by the company to supervise the unit. The hub is currently developing an online marketplace for NFTs to trade, buy, sell, or trade virtual videogame artifacts, such as weaponry and avatar clothing.
GameStop created its NFT website in 2013 and is now inviting creators.
Two crypto startup partners are close to the company, which will allow them to trade technology as well as co-invest in creating blockchain and NFT games. The report states that the company plans to sign similar agreements with at least a dozen crypto startups and to invest millions in them.
GameStop made a restructuring of its leadership and board last year. Ryan Cohen is an activist investor who was named chairman.
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GME Price Rise In Response
Last January, GameStop’s stock skyrocketed after Reddit stock traders began buying the shares. In 2021, the stock traded at $18 and increased to $483 one year later. Due to the extreme volatility, multiple congressional hearings were held and probes by federal agencies took place.
GameStop’s stock ended Thursday at $131, but it has risen to $172 during after-hours trades.
GME trading is now open at $163 after the announcement. TradingView
GME shares were significantly higher in the hours following this news. It appears that there was yet another short squeeze. That will make it great news for long-term investors who saw stock price drop.
Some of the industry’s largest companies in the videogame business, including Ubisoft Entertainment, Zynga Inc., and Square Enix Holdings Co., have started or announced plans to sell NFTs in recent weeks. Some industry players and leaders have raised concerns about NFTs’ value and their motivations.
In light of the COVID-19 pandemic’s impact on GameStop’s physical storefronts, the WS Journal’s report presented the GameStop NFT strategy as one targeted at increasing the company’s overall financial performance.
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