GameStop shares rose sharply in terms of the company launching a non-fungible token (NFT) market.
It was almost time for the turbocharged countries of meme-stock and crypto commerce to collide in a major turmoil.
News reported late Thursday that GameStop Corp., which became a sign of a difficult 2021 year for retail sales, enters the business of non-perishable tokens sent the stock up to 20% just hours before the return. Shares rose almost 6% to $ 138.50 from 10:45 am Friday in New York. The jump followed a major run since the end of November.
The NFTs were seen as the hottest thing in the world last year when the prices of digital art went up to millions of dollars and celebrities and athletes flocked to the financial sector. GameStop’s merger with crypto follows the reddit of crowd-based Reddit-crowd partner AMC Entertainment Holdings Inc., which announced in November that it was considering offering its own crypto currency.
The entry into the NFT market could be a recent sign for Chairman Ryan Cohen, whose push to re-launch the brick-and-mortar video game vendor as the first digital retailer sparked market interest last year, sparking significant hedge funds losses. were few shares.
“The market loves the choice, the struggling company has bought time and hung up the NFTs in front of investors,” said Tokyo sports analyst Serkan Toto. “However, I doubt very much whether GameStop can make its own. The company really needs partners to compete with OpenSea and find video game companies to compete.”
GameStop’s NFT approach, first reported by the Wall Street Journal, involves discussions with crypto and blockchain operators about what tokens can be accepted in its market and the establishment of potential funds, each up to $ 100 million, for NFT manufacturers. and game studio.
The largest market for NFTs, OpenSea, was valued at $ 13.3 billion this week in recent revenue. It saw a trade explosion last year, with a monthly increase of $ 3.4 billion in August, up from $ 96.7 million in February, according to Dune Analytics. The company generates revenue of more than 2.5% for each transaction.
Following the success of OpenSea, many other NFT markets have emerged in recent months, hoping to attract users. GameStop already has a stable team of millions of loyal players who can point them to their market.
The strength of the crypto-assets increase was demonstrated earlier this week when shares of Square Enix Holdings Co. jumped 7.5% after a letter from its president for the new year that plans to create metaverse, blockchain and NFT promotions for players. This also highlights the differences between the market and the way people act as a developer, whose titles include the well-known Final Fantasy license, which was widely criticized by players and industry executives for its monetary efforts.
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