Shares of GameStop Corp (NYSE: GME) opened about 20% up this morning on a WSJ report that the video game retailer plans on stepping into the NFT (non-fungible tokens) space.
GameStop to set up a marketplace for NFTs
According to the Wall Street Journal, GameStop will set up a marketplace for NFTs of videogame collectables like weapons and character outfits.
The company is asking select game developers and publishers to list NFTs on its marketplace when it launches later this year.
GameStop has so far hired over 20 experts to run the new division. The report also said it will secure partnerships in the crypto space to develop games and create items for the marketplace. The Texas-based company is yet to make an official comment.
GME is now trading at $155 a share that still represents a close to 40% decline in less than two months. Last month, GameStop blamed rising inventory as it reported weaker-than-expected earnings.
GameStop regains popularity on WallStreetBets
Commenting on the WSJ report, Adam Hollander, who created the “Hungry Wolves” NFT collection, said GameStop was well-positioned to benefit from the NFT space.
A lot of these NFT projects are starting to add gaming utility behind the NFTs themselves. GameStop is well-positioned to be able to capitalize on that. They have hundreds of millions of people that play video games and recognize GameStop as a credible brand.
GameStop was one of the first targets of Reddit-driven short squeeze in early 2021. Following WSJ’s report late last night, it was once again “the most-discussed stock” on WallStreetBets on Friday. As of writing, about 7.0 million shares of GameStop have been traded today versus the average of 2.4 million.
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