Leading video game publishers have started to invest fully in blockchain-derived applications. After Ubisoft, it is GameStop’s turn to take action by recruiting more than 20 people who will be responsible for developing its NFT platform. The announcement of the news was well received in the stock markets. In particular, it enabled the company’s shares to jump 31%.
A marketplace dedicated to video game NFTs
For almost a year, rumors have been announcing that GameStop will be entering the NFT sphere. In April 2021, a job posting posted on the company’s website notified that the company was looking for an analyst with knowledge in crypto, blockchain and NFT. A month later, the company confirmed that it is looking for outstanding engineers, designers, gamers, marketers and community leaders to participate in an NFT Ethereum project.
On the morning of January 06, the Wall Street Journal revealed that GameStop had just created a new unit of over 20 people to build its NFT platform. This will allow customers to buy, sell and trade NFTs of video game items. These include clothing and weapons for player avatars. In response to the announcement, GameStop (GME) stock jumped 31% in stock exchanges to reach the value of $ 170. It is also about its highest price for almost a month.
A risky bet
A year ago, traders based on Reddit had already raised the price of GME’s stock from $ 20 to $ 483 by promoting it as the same stock. The company has since come down from those heights, but took advantage of the increased interest and capital to innovate. The current breakthrough on the stock markets should also allow GameStop to replenish its coffers to finance its new project. Nevertheless, the company could come up against the antipathy of many players towards NFT.
By launching its NFT platform a month ago, Ubisoft sparked great dissatisfaction within its gaming community. The latter notably affirmed that the blockchain was a threat to the environment and video games. Some of them still remembered the exponential increase in the price of graphics cards which are also used by cryptocurrency miners. Square Enix also sparked a revolt in its community by recently announcing its intention to get into blockchain and NFTs.
These events should not for all that dissuade GameStop for whom the incursion into the NFT seems essential. Indeed, the company hopes to build on this market of more than 40 billion dollars to reverse several years of losses.
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Luc Jose Adjinacou
Far from having dampened my enthusiasm, an unsuccessful investment in 2017 in some crypto only increased my enthusiasm. I therefore resolved to study and understand blockchain and its many uses and to relay information relating to this ecosystem with my pen.