One of the world's largest gaming retailers, GameStop, is making investments on NFTs and cryptocurrency. They teased a marketplace that would be selling videogame goods as NFTs.
The surprising announcement boosted GameStop shares price to more than 14 percent in extended trading hours.
GameStop revealed its exciting plans on Thursday evening via The Wall Street Journal (TWSJ).
GameStop Stock Update: NFT Boost
According to TWSJ, GameStop is launching a new division to develop and execute its NFT projects. This team will be responsible in creating NFTs. It will also establish cryptocurrency partnerships with like-minded companies. Lastly, it will build an online hub for buying, selling and trading GameStop NFT.
GameStop reportedly started notifying game developers and publishers about its NFT projects in hopes that they would be open to selling NFT merchandise. GameStop is also preparing to sign partnership with two cryptocurrency companies, per TWSJ. The whole NFT marketplace is speculated to cost millions for the company.
It is worth noting that GameStop might have shifted interests to NFTs to reset their business performance. This is because GameStop struggled to sell its physical game copies in these last few years. In comparison, cryptocurrency and NFT are some of the most hyped sectors in technology. This industry might serve as a business opportunity for GameStop to transform its gaming goods into digital assets.
For reference, NFT is a technology that serves as proof of ownership over digital goods. The information is stored on a blockchain, often under the Ethereum platform. GameStop said its NFTs would be inspired by videogame goods, which would include avatar outfits, weapons, and other related items.
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GameStop Shares Price Go Up
Although the GameStop NFT marketplace is still in its planning stages, it definitely created a lot of hype among investors and gamers. According to CNBC, GameStop shares surged by 14 percent, trading at $174 on Thursday at 5:30 PM PST.
At the time of writing, its value dropped to $161.45 in MarketWatch. The number is still a significant boost when compared to Wednesday trading, which costs $120 to $130 levels.
CNBC pointed out that the GameStop NFT marketplace still has much potential to show. If the company properly established its projects, GameStop might be comparable to OpenSea, the biggest NFT marketplace that is recently valued at $13.3 billion. This is something that investors have to look out for in the future.
GameStop did not provide a timeframe for their NFT plan, but it is implied that a few changes should be evident some time this year. Unfortunately for fans, GameStop didn't respond to a request for comment with CNBC.
It should be emphasized that this there is still nothing concrete from GameStop. The NFT marketplace has yet to be established, so traders can't buy out GameStop NFTs yet. Fans have to wait and see for these projects to be fully developed. Hopefully, more updates will be available soon.
