What is GameStop?
GameStop is a video game, consumer electronics, and gaming product firm based in the United States. The firm is based in Grapevine, Texas, and it is the world’s largest video game store. The most sought at GameStop are Xbox, PlayStation, and Nintendo games, systems, consoles, and accessories.
It is a fairly established firm (founded in 1984) and expected to grow.
GameStop to launch its NFT Marketplace.
With all the air around NFTs, it is only expected for a leading video game and electronics firm to launch its own NFT Marketplace rather than use the ones like the popular OpenSea or Rarible, etc.
But what is interesting is that Gamestop plans to raise a fund of a whopping 100 million US dollars for the game developers who use the marketplace.
The GameStop NFT is expected to launch this year. It will be built on Immutable X, a blockchain-based platform based on the popular Ethereum cryptocurrency. It is designed by the same company that designed the top-rated game Gods Unchained. Their goal is to address two of Ethereum’s main flaws: its large energy consumption and hefty “gas fees.” Immutable has offered to pay for carbon offsets to make up for the environmental expenses it incurs, as it uses Ethereum.
Immutable (formerly known as Fuel Games) is an Australian firm based in Sydney and founded by Robbie Ferguson.
Last year, GameStop advertised for a “head of Web3 gaming” as well as a range of NFT-based roles, indicating its interest in blockchain technology. Non-fungible tokens are frequently presented as a mechanism to prove ownership of in-game things. They may also be used to allow players to trade items outside of a permitted marketplace, such as an in-game auction house.
Some “play-to-earn” games, such as Axie Infinity and others, employ cryptocurrencies and NFTs to operate an in-game economy that players may use to earn real money. However, their advantages are frequently exaggerated, notably promises that they would allow players to transfer stuff from one game to another, which is difficult and generally undesirable for a variety of reasons.
Effect of the NFT on GME stocks.
After losing about 30% of its value in 2022, GameStop stock managed to gain double digits in a single trading session. This is linked to the upcoming non-fungible tokens collection by many professionals.
Having said that, the stock is still lagging by 60 percent from its all-time high stock price.
The final verdict is that the recent stock market correction demonstrates how fear and confidence feelings may shift swiftly in the present economic environment. How sudden spikes – both low and high- can still affect the stock of a company that has been in the business for decades.
GameStop’s and other speculative assets’ bad trading performance may not have been attributable to a unique asset-related problem but rather to the broader investor sentiment trend pushed by the economic backdrop.
What to focus on-
There are many investment opportunities when it comes to NFTs, but their future is unpredictable, and hence the investment can be risky. Having said that, there is a large pool of revenue that comes from the video game firms that have ventured into non-fungible tokens. So the buyers need to assess the performance statistics that the company has over a range of period and the potential growth projection that will come with the launch of NFTs.