GameStop, the largest retail gaming center, has entered the crypto space. GameStop has released its fourth quarter fiscal 2021 results. In this report, the supposedly beloved video game store has decided to launch its NFT marketplace. The NFT Marketplace will reportedly be launched “by the end of the second quarter of fiscal year 2022.” This means the launch will happen sometime around June 30th.
Initial reports from the Q4 review said the company launched a massive cryptocurrency recruitment campaign last spring.
GameStop focused on the fact that they “hired dozens of additional people with experience in areas such as blockchain gaming, e-commerce and technology, product repair and maintenance.”
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The long-awaited transition from GameStop
Needless to say, the kind of progress that GameStop has made was entirely to be expected, given that the company has announced its partnership with ImmutableX.
ImmutableX is a scaling solution that allows seamless transactions on Ethereum, so the NFT Marketplace will run on Ethereum itself. Transaction scalability in ImmutableX will allow 9,000 transactions per second and will not charge users.
In addition, GameStop will receive approximately $150 million worth of IMX tokens from this ImmutableX deal. These tokens will be delivered as soon as GameStop starts meeting the set goals and objectives as they progress.
This money will be used to fund developers and other creators who will work on the platform. GameStop allegedly sold 15 million IMX tokens received as part of the deal.
GameStop reports quarterly losses
Although GameStop has confirmed the launch of the NFT trading platform, GME stock has fallen nearly 10% in the last 24 hours. This drop may be due to the company’s poor performance compared to last year. The retail gaming platform posted a loss of nearly $148 million in the fourth quarter of 2021.
However, at the start of last year, the company saw a mammoth growth of over 100%, just after all Reddit users banded together to revive the company. Reddit users acted as rescuers, buying the company’s stock to protect it from Wall Street hedge funds.
The move, in part, sent GameStop’s stock price skyrocketing nearly 180%, from $17 to $480. GME token prices plummeted immediately after, but GME was trading at $89 at press time, which is quite impressive considering how the coin has recovered.
GameStop is also not the only company that wanted to go the Web3 path, there are many other organizations that share the same vision. Recently, Spotify has also expressed interest in entering the NFT market.
Ubisoft, while criticizing itself by calling its crypto plans “embarrassing”, is not one of the first gaming companies to jump into this space. Barring those names, the company is about to witness some giant names such as Binance, OpenSea, and Coinbase, making the space even more competitive.
GME has been trading sideways for the last 24 hours. Image Source: GME/USD on TradingView
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