Media reports that GameStop plans to launch NFT marketplace

The American retailer GameStop, a chain of stores that sells gaming consoles and video games, has hired more than 20 people into a new division to develop an NFT marketplace. The Wall Street Journal reports, citing sources.

One of the interviewees said that the company plans to create a platform that will allow buying, selling and exchanging non-fungible tokens based on in-game items. The launch of the marketplace is reportedly slated for the end of 2022.

According to the Journal, the initiative by GameStop is aimed at “to improve overall financial performance in light of the COVID-19 pandemic’s impact on its stores”.

The WSJ also asserts that the retailer is close to signing deals with two crypto companies “to use their technologies and jointly invest in the development of games using blockchain and NFT technology”.

GameStop’s shares rose more than 20% in after-hours trading.

In the r/Superstonk Reddit subreddit, one user doubted that the WSJ article had a strong impact on GME’s quotes. He also pointed to the lack of comment from GameStop.

“I think something else is going on, and this article was published to make the NFT market a scapegoat for the price rise,” the author of the post wrote.

Former hedge fund manager at Cramer & Co. and host of Mad Money on CNBC, Jim Cramer, reminded that he proposed that GameStop “go fully into cryptocurrency”.

“It took a little under a year, but they’re doing what I said they should have done,” Mr. Cramer said.

Twitter users criticised his statement and reminded that the host had taken a negative stance toward GameStop.

Well… actually.. you said that after #GME hired the blockchain experts and if I’m not mistaken you actually said “Ryan Cohen has no plan and #GME is a dying company” (I believe that’s word for word, and if not it’s the most accurate summary of what you said) @jimcramer = 🤡

— Space Monkey (@d_davidb) January 7, 2022

In January 2021, GameStop’s stock price on the NYSE reached $347. This preceded a call in the r/WallStreetBets subreddit not to let big players sink the company.

GameStop’s rally proved costly for large players with short positions, notably for Melvin Capital—the hedge fund lost 53% of its capital in January.

Against the backdrop of the pump in its shares, the online broker Robinhood restricted trading in several assets. This drew complaints from authorities and investors, who suspected the company of colluding with Melvin Capital and the market maker Citadel.

Subsequently, Robinhood co-founder Vlad Tenev, in a conversation with Elon Musk, explained this decision as an \”unprecedented load\” and an aim to protect users. He also denied reports of collusion with major players.

In May, GameStop announced the launch NFT platform and the native token GME. The company also said it is recruiting developers, designers, gamers, marketers and community leaders.

As reported in December, GameStop resumed accepting cryptocurrency payments through the Spedn app from Flexa Network.

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