The shares of GameStop have been rallying since the company announced that it would be entering the nonfungible token (NFT) space.
GameStop, one of the top-performing stocks last year, announced yesterday that it is entering the NFT space. The company will launch a division tasked with building a marketplace for nonfungible tokens (NFTs) and establishing cryptocurrency partnerships.
According to the video game retailer, the new unit is expected to lead its turnaround efforts to become a profitable company. In its report, the Wall Street Journal said
“The retailer has hired more than 20 people to run the unit, which is building an online hub for buying, selling and trading NFTs of virtual videogame goods such as avatar outfits and weapons, according to the people. The company is asking select game developers and publishers to list NFTs on its marketplace when it launches later this year.”
The shares of GameStop have been rallying since the company announced this latest development yesterday. Over the past 48 hours, the shares of GameStop have rallied by more than 30%, outperforming numerous stocks in the process.
At press time, GME is trading at $136 per share, up by more than 4% since the US market opened a few hours ago. The company’s plan will see it build an online hub for buying, selling and trading NFTs.
The NFTs would be of virtual videogame goods such as avatar outfits and weapons. The Texas-based company is also set to sign partnerships with two cryptocurrency companies. The partnership would see them share technology and co-invest in games and other NFT-related projects.
GameStop became very popular towards the end of 2020 when it became a meme stock. Reddit traders and investors pushed its price higher as they looked to save the company from its recent poor performances.
The company revealed last year that it wants to build an Ethereum-based Web 3 arm.