Sat. Jan 22nd, 2022

GameStop goes big on cryptocurrencies and investors are all for it. The video game retailer plans to create a marketplace for non-swingable tokens and develop a cryptocurrency business. The mere mention of crypto in the same breath as the original meme stock caused trading frenzy. The stock rose as much as 17 percent before retreating sharply.

GameStop is not the only company that wants to take advantage of the stock-enhancing power of crypto-association. Cinema chain AMC Entertainment, another meme share favorite, started accepting cryptocurrencies and released its own NFTs last year.

To critics, NFTs mainly point to the top of an asset bubble that has already begun to inflate. Demand for the tokens – which use technology that stores evidence of ownership of digital goods on a blockchain – has exploded over the past 12 months. The transaction value reached more than $ 23 billion in 2021 to an estimate. OpenSea, a leading NFT market, was last rated at $ 13.3 billion next investment of $ 300m.

Players – who already spend a lot on virtual goods and collectibles – are a fast-growing segment of the NFT market. It makes sense for GameStop, which has grabbed its meme stock fame to restore its balance sheet, to try to create its own marketplace. It will also be in line with Chairman Ryan Cohen’s effort to transform the brick-and-mortar retailer into an online hub for e-commerce, e-sports and online gaming.

None of this should divert attention from GameStop’s sales problems. Shares in GameStop have almost halved since November. Just as the rise of online games has served visits to GameStop physical stores, the challenge will be to get players to spend their money on its future NFT platform. But gaming giants like Nintendo, Xbox and PlayStation all have their own e-commerce sites. Players are already accustomed to buying virtual goods directly from gaming platforms such as Minecraft, Roblox and Fortnite. GameStop, as a favorite of meme traders, is preaching to the converts with its plan to move to crytpos and NFTs.

If you are a subscriber and would like to receive alerts when publishing Lex articles, just click the “Add to myFT” button, which appears at the top of this page above the heading.

Source link

By admin

Leave a Reply

Your email address will not be published. Required fields are marked *