Truly, GameStop has emerged as a champion of positivity in recent times. From rallying shares during the pandemic to launching the new GameStop NFT market place, it continues to defy the economic downturn.
On July 11, the video game retailer announced that it has launched a market place where gamers, creators, collectors, and other community members can buy, sell and trade NFTs. At a time when fears of a global recession and an incoming crypto winter are eating investors alive, GameStop has yet again chosen to take the unconventional route.
Crypto Winter and NFT Market
A fierce crypto winter has even seasoned investors panicking as they try to sell off their holdings to make room for more traditional instruments. The current turmoil has pushed many start-ups to the brink of bankruptcy, not to mention many lenders, who have put a temporary hold on withdrawals.
The looming uncertainty has resulted in panic selling and layoffs, and it is highly unlikely that it will ease anytime soon. Matteo Dante Perruccio, a partner at crypto investment firm Wave Financial, told Forbes that the crypto market will take anywhere between six months to two years to recover. But this time, unlike previous crypto winters, due to the presence of institutional players like Goldman Sachs and Morgan Stanley amongst others, the recovery will be much more streamlined and healthier, in line with true investment philosophy.
CoinTelegraph recently reported that the bearish market has impacted the NFT market. The NFT ecosystem recorded its worst performance of the year in June 2022. The total number of daily sales fell down to roughly 19,000 with an estimated value of $13.8 million — a number which was previously recorded in June 2021.
How do I get an NFT for GameStop?
In February, the video game retailer revealed that it will launch the GameStop NFT market place. But with the crypto crisis worsening, crypto evangelists did not expect such an early launch. Furthermore, GameStop recently announced some layoffs, with CEO Matt Furlong informing employees in an internal memo that “we’re making a number of reductions to help us keep things simple and operate nimbly with the right talent in place.” He mentioned that the company wants to achieve sustained profitability.
On July 7, the company notified stakeholders that it had terminated the services of CFO Michael Recupero. He was replaced by Diana Saadeh-Jajeh, who previously held the post of chief accounting officer.
The crypto winter has been harsh and unforgiving, with companies like Coinbase, BlockFi, and Crypto.com laying off staff to secure the future. According to an annual filing on January 29, GameStop operated 4,573 stores, of which 3,018 were in the US. In addition to its namesake business, GameStop also owns the EB Games and Micromania brands.
On GameStop’s NFT marketplace, over 200 collections are available for perusal, with about 53,000 NFTs listed. Users will be able to list, buy, and sell their wares on the GameStop NFT market place by connecting to the newly-launched GameStop Wallet, apart from other digital wallets.
Interest creators must fill out an application on the platform to be able to create an NFT. Experts believe that the company is tapping into the NFT market to accelerate its growth, after activist investor Ryan Cohen took charge of its turnaround.
GameStop hinted that support for Immutable X, a platform built on Ethereum that is used by some NFT games, is coming soon. GameStop and Immutable X have also launched a $100 million grant program.
In a written statement GameStop revealed that. “Over time, the marketplace will expand functionality to encompass additional categories such as Web3 gaming, more creators and other Ethereum environments.” GameStop will face tough competition from established NFT marketplaces like OpenSea and AxieMarketplace. After a meteoric rise during the pandemic, NFTs hit a slump in June as rising costs and inflation spooked investors.
