GameStop Turn To NFTs

GameStop, a video game store, has joined the non-fungible token (NFT) sector. According to the Wall Street Journal, the company is establishing a section to create a marketplace for non-fungible tokens and to forge cryptocurrency partnerships with crypto businesses.

According to the WSJ article, the corporation has hired more than 20 people to run the operation, which is creating an online marketplace for buying, selling, and exchanging NFTs of virtual videogame artifacts such as avatar apparel and armament.

Last year, GameStop created its NFT website and began asking authors to join the platform.

In addition, the firm is nearing agreements with two crypto companies to exchange technology and co-invest in the development of blockchain and NFT-based games and other NFT-related activities. This year, the shop intends to get into similar agreements with a dozen or more crypto businesses, investing millions of dollars in them.

Last year, GameStop overhauled its executive team and board of directors, naming activist investor Ryan Cohen as chairman. This has compelled GameStop to become more technologically oriented.

GameStop’s stock surged last January after Reddit stock traders began buying the shares. In 2021, the stock started trading at $18 and hit a high of $483 a year later. As a result of the unusual volatility, many congressional hearings and government agency investigations were undertaken.

GameStop’s stock closed at $131 on Thursday, but it has already soared to $172 in after-hours trade.

In recent weeks, some of the industry’s major gaming businesses, including Ubisoft Entertainment, Zynga Inc., and Square Enix Holdings Co., have begun or announced plans to sell NFTs. However, some industry executives and players have voiced concerns about the utility of NFTs and the objectives of their inventors.

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Patrick

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