Crypto Inspiration Boosts GameStop Stock by Over 20%
The shares of video game retailer GameStop saw a 27% rise on extended trading yesterday. This came after news that the company is launching a division to develop a Non-fungible token (NFT) Marketplace and establish cryptocurrency partnerships.
GameStop to Launch an NFT Marketplace
Although the company refused to comment, a source close to the matter confirms it. It’s said to be part of the massive restructuring currently ongoing at the company. This is in a bid to turn GameStop to eCommerce after years as a brick-and-mortar business.
Apparently, an NFT marketplace is an important part of this plan. According to Wall Street Journal, which first reported the news, the company is already working with some game developers and publishers who’ll list their NFTs on the marketplace.
The company got a lot of attention during the meme stock rally as the price of GME went through the roof last year. But it has since dropped to more conservative levels.
Now, an NFT marketplace appears to be the perfect catalyst the company needs for its shares to rebound. GameStop launched an NFT website last year for creators to join the platform and also announced that it would be accepting popular meme coins, Dogecoin and Shiba Inu.
With the company already hiring over 20 people to work on the project, the marketplace might be a reality soon. Per WSJ, the marketplace will be a virtual space for people to trade NFTs of virtual video games collectibles.
GameStop’s interest in NFT isn’t surprising, especially with the digital asset’s mainstream attention in recent months. You’ll recall that we reported the acquisition of an NFT by popular football star Mario Gotze. We also reported that a leading sporting event, Australian Open, is also incorporating NFTs into its tournament.
Also, two of the leading electronics makers in the world, Samsung and LG electronics have announced that they would be adding NFT features to their new smart TVs.
NFT-related Tokens are in red Despite Public Interest
According to data from Coingecko, the top 5 NFT tokens by market cap have lost between 2% to 25% of their values in the last seven days.
In fact, Axie Infinity’s AXS token, for example, is one of the biggest losers as it lost over 20% of its value within the last 7 days despite the growing interest by top companies like Adidas and others. Other top losers include GALA and SAND with losses in double digits too.
However, it should be noted that the entire crypto market is currently bearish.
Projects like Decentraland, Enjin Coin, and others went on a bull run that culminated in their native tokens rising to new heights last year.Source