GameStop plans to build NFT marketplace, partners with several Crypto companies

According to the Wall Street Journal, GameStop Corp. plans to establish partnerships with crypto companies to build a marketplace for NFTs. Last January 6th, the company’s stock traded for $131.03 and just a day later the price surged to $155.95.

Projections for the company were volatile in 2021 as retail investors pumped the share price by about 687%. However, most traders consider this to be a meme stock as its price fluctuations are not driven by conventional metrics.

GameStop is reportedly building an online “hub” to exchange NFTs for select game developers and publishers. Additionally, they have also been developing games that use these tokens and are “close to signing” agreements with two cryptocurrency companies. Bloomberg also reports that the company is setting up funds each worth $100 million to invest in game studios and crypto companies.

GameStop CEO, Matt Furlong, announced during an earnings call last December that the company is setting itself up for “long-term positioning”.

“2021 NFT activity was frenzied. That’ll subside in coming years and NFTs will settle into something more akin to today’s modern art market, where consensus on value is more solid,” George Monaghan, an analyst at research firm GlobalData told The Guardian last year.

Tokyo-based analyst Serkan Toto has said that GameStop has bought some time with the announcement of NFTs.

“I am very skeptical if GameStop can make it on its own. The company definitely needs partners to compete with the likes of OpenSea and get video game companies to cooperate,” Toto said. OpenSea is the world’s biggest NFT platform.

“The market loves the decision, the struggling company has bought some time by dangling NFTs in front of investors,” said Tokyo-based games industry analyst Serkan Toto. “However, I am very skeptical if GameStop can make it on its own. The company definitely needs partners to compete with the likes of OpenSea and get video game companies to cooperate.”

Source: Investopedia, Aljazeera