GameStop Innovates by Creating NFT Marketplace via Ethereum
Image courtesy of 123rf.

GameStop Innovates by Creating NFT Marketplace via Ethereum

GameStop has released plans to create an NFT marketplace on the Ethereum Network.
Neither the author, Kai Morris, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.

As a means of proving its relevance in the gaming world, and capitalizing on its newfound media attention brought by the GME hedge-fund battle that started earlier in the year, GameStop has chosen to expand into non-fungible tokens (or NFTs).

The NFT industry is one of the fastest-growing blockchain markets, with its trading volume reaching almost $200 million within a single week during this year. GameStop’s decision to get involved with NFTs is huge as it is one of the most recognizable names in the gaming world, and so it certainly has the potential to shake up the landscape. 

Chart showing NFT trading volume per week 2021
Image courtesy of theblockcrypto.com

What are GameStop’s NFT Plans?

Currently, very little is known about what GameStop intends to do within the NFT market. On May 25th, they released a website named nft.gamestop.com, featuring the words

“Power to the players.

Power to the creators.

Power to the collectors.”

The website also lists an Ethereum address that points to a token by the name of GME. The earliest activity from this address was also on May 25th, and while several people have been sending tokens to it, the owner has not sent anything from it yet.

At the bottom of GameStop’s new website is a call to action for developers, engineers, and community leaders. This suggests that their plans are still very much in the making and that they do not have a finished product just yet, but there is a high chance they are building a marketplace for NFTs.

What makes this such big news is that, at the start of the year, GameStop was thought of as a company that lacked innovation, with many thinking that it had no future in the gaming world. This is one of the big reasons why hedge funds such as Melvin Capital chose to short GME. However, GameStop’s entrance into NFTs proves the doubters wrong as this is one of the most innovative and cutting-edge technologies of the last decade. 

The stock market has reacted positively to the news, shooting GME up to $230.00. This means the stock has soared for the third time this year, the second time happening in late February. For the remaining short sellers who’ve yet to learn their lesson from the newfound GME army, this spells bad news for short sellers’ future, as GameStop is likely to continue receiving positive attention with its NFT news. 

Stock chart depicting GME
Image courtesy of TradingView.

Bear in mind that if it was not for the worldwide efforts of Reddit’s various users, this announcement might not have even been possible. Take a look at GameStop’s quarterly earnings: in Q1 2021 they reported a significant profit after making consistent losses throughout 2020. Plus, on May 3rd, they were able to eliminate all long-term debts. It is undeniable that GME’s community was a contributing factor to this. 

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NFTs and Gaming

NFTs are poised to be a huge part of the gaming world. While NFTs are generally thought of as unique digital pieces of art, they are also used within games—especially trading card games. Gods Unchained, Sun-Min + David, and Sorare are three examples of trading card games that actively use NFTs. Other games such as Evolution Land and Axie Infinity use NFTs in more creative ways, representing in-game assets that have individual purposes. 

It is hard to say just how big the NFT market will get, but what is clear is that the industry is still new, and very much in its infancy. We know this because we are yet to see any huge game studios jump on the NFT bandwagon; it is possible they are patiently waiting to see how the market acts in the long run before joining in.

In fact, GameStop might actually be the most well-known company in the gaming industry to actively get involved. This is potentially massive news for both NFTs as a whole, and for GameStop fans. 

GameStop has a long history, having worked with giants such as Sony and Microsoft. This means it existing network of impressive connections, putting them in the perfect position to bring NFTs to the mainstream gaming field. It will be fascinating to see what exactly GameStop has in mind.

What do you think of GameStop’s NFT plans? Let us know in the comments below.

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