GameStop became a sort of financial celebrity last year when redditors bid up its shares in an effort to demonstrate, well, that they could. Now GameStop must validate the same level of promise as its new investors believe it has. But there’s more to GameStop’s NFT plunge than just catching Wall Street’s attention. Meanwhile, Binance is cautioning against the crypto celebrity-industrial complex… by fueling it. My one concern: Are spokespeople fungible?
Today, GameStop is announcing a long-awaited NFT market. It’s the company’s latest effort to ride the meme-stock wave while embracing its new identity.
GameStop, which is attempting to exit a failing business that sells packaged software games, has been considering crypto as its future or at the very least a possible one for some time. Last May, the organization revealed that it was hiring Web3 engineers for the first time. Now it’s revealing what they’ve been up to.
GameStop’s marketplace will be based on Immutable X, a layer 2 technology focused on NFTs. Immutable claims to offer zero transaction or “gas” costs for minting and trading NFTs, which is an issue for buyers.
GameStop knows it needs to break away from fading retail locations. To propel its transition away from retail, the firm is leveraging its meme status.
- The Reddit-fueled excitement that helped fuel its stock increase has now faded, and it must defend its pricey valuation. Its shares have been volatile as investors try to determine how much potential GameStop has.
- The NFT market is a gold rush, as witnessed by OpenSea’s tremendous growth, which did almost $5 billion in sales in January.
- To persuade consumers of different marketplaces to switch, GameStop will need more than a well-known brand. It’ll first require game developers to bring their best titles, and then it’ll need players — many of whom are not enthusiastic about mixing crypto and gaming.
NFTs for gaming are a hot commodity. NFTs that have already gained a considerable audience include art projects, but the concept of digital assets has long been present in gaming — something GameStop is hoping to capitalize on.
- GameStop and Immutable are launching a $100 million venture to finance NFT gaming.
- The company says that the NFT marketplace will support game developers who wish to create in-game NFTs. This is a relatively new area for gaming, and it has produced significant gains for games such as Axie Infinity.
- GameStop will have to persuade both gamers and developers that it is a better alternative than a variety of other platforms, including broad general-purpose NFT marketplaces like OpenSea and game-specific stores.
- The main advantage of using a gaming-centric wallet is that it allows for much larger bets. However, there are other low-cost alternatives emerging. Developers seeking for lower costs might look into using a larger network like Solana, which has $250 million set aside for game development on its network.
- Then there’s the fact that games are hit-and-miss. Since the summer’s peak, Axie Infinity engagement has taken a nosedive.
NFTs are a logical investment for gamers, with increasing momentum from both developers and users. GameStop is in an odd position considering Web3’s stated goal of eliminating middlemen. Because crypto transforms everything into a financial transaction, there will be a battle over whether new studios or established publishers, wealthy crypto investors or upstart protocol developers, and distributors or promoters accrue value. GameStop is an out-of-the-blue choice.But maybe it’s what its memed-out investors are banking on.
What do you think about this play to earn video game idea? Do you think it will succeed? Let us know in the comments!