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The shares of GameStop have been on a notable uptrend since Thursday. The shares made an over 22% increase on Thursday. The rise has been attributed to a report that the company plans to create a marketplace for non-fungible tokens (NFTs).
GameStop recorded notable growth in 2021 due to the meme stock frenzy. The shares made notable gains after traders on Reddit pumped the prices.
GameStop venturing into crypto
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A Wall Street Journal (WSJ) report noted that GameStop plans to launch a marketplace for NFTs. Additionally, the retailer is also planning on making several partnerships in the crypto space.
The partnerships that GameStop seeks are enabling the company to create games and other unique items that will be available on the marketplace. The report from WSJ quoted sources that were familiar with the matter.
The marketplace being developed by GameStop will focus on supporting the trading of items offered in virtual video games. Some of the items listed on the platform include weapons and the outfits of characters on GameStop.
GameStop has not given an official statement on the matter. Despite the rise in its share value, the stock is still 59% below its record high set in January 2021.
Boom in NFTs
Following this announcement, GameStop will be venturing into one of the most popular spaces in the tech markets. The NFT space recorded a major boom in 2021, leading to major growth in companies operating in the sector.
There are several NFT marketplaces, with the largest one being OpenSea. This marketplace was recently given a valuation of $13.3 billion. During the first four days of 2021, the marketplace had recorded average trading volumes of over $700 million, showing a reignited frenzy in NFTs.
NFTs are one of the innovative products in the blockchain space. The technology brings authenticity to the ownership process because it gives owners proof of ownership. Most NFTs have been developed on the Ethereum blockchain, but others are also available on other chains.
There was a major trading frenzy for NFTs in 2021. Additionally, investors have made notable returns from their investments. The potential of the technology has also attracted notable players in the crypto space and beyond.