About a week ago, GameStop announced that it was launching its own NFT marketplace. This was a bit out of the blue, especially since GameStop isn’t exactly a “tech giant” in the same way as Twitter, Instagram, and Facebook are. When these social media platforms announce that they’re about to implement NFTs, no one really bats an eye. It’s expected.
But when a dwindling video game store chain makes that same announcement, people are a little skeptical. After all, this company relies on the sale of physical copies of games – a market that has been declining over the last few years.
But GameStop isn’t content with just creating an NFT marketplace. According to new information, it seems as though they’re also launching a first-party crypto wallet to go along with this new service. This would suggest that GameStop is going “all in” when it comes to Web3. But will this move prove to be successful?
What We Know About Gamestop’s NFT Platform
Rumors of GameStop’s upcoming NFT marketplace first started to swirl around February of 2022. The service is set to launch by July of this year, and the video game company is partnering with Loopring. Initially, Gamestop announced that it had partnered with Immutable X to create a $100-million fund in IMX tokens. The plan was to use this fund to provide grants to NFT creators and builders.
Interestingly enough, Immutable X then announced that the platform would be 100% carbon neutral, and that it would be completely free from “gas fees” that afflict virtually all Ethereum-powered transactions. Recently, it was reported that Loopring is also assisting Gamestop with their new endeavor.
On March 23, Loopring announced that they had launched a beta version of the Gamestop NFT marketplace, which means that some users can now start setting up their profile and username with early access features.
On March 28, it was reported that Gamestop had filed a trademark for something called “Gamestop Wallet” under a subsidiary company called GME Entertainment, LLC. This would suggest that the company is planning to launch a first-party crypto wallet alongside its new NFT marketplace – although no official announcement was made.
Why is GameStop Doing This?
The main question is why GameStop would even invest so much time and money into an NFT marketplace when the economy is already inundated with other companies that are attempting to launch similar platforms. Why would NFT investors choose to use GameStop’s marketplace instead of some other option?
GameStop might be banking on its newfound reputation as a so-called “meme stock.” GameStop knows that its stock prices are high, not because of its actual value as a company, but rather because a bunch of people on Reddit decided to pool in to buy shares.
It’s no secret that GameStop is a dying company – and it’s not hard to see why. People tend to simply download their games these days instead of buying physical copies, which means that video games stores are slowly going extinct.
So why is GameStop starting an NFT marketplace? The answer is simple: the company is trying to adapt and survive.