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GameStop has announced that its non-fungible token (NFT) marketplace will be launched by the end of the second quarter of 2022. If the marketplace is launched, GameStop will be competing with the leading NFT marketplaces such as OpenSea and Rarible.
After witnessing a major stock rally from the Reddit community, GameStop became popular as a meme stock. Reddit users pumped the stock after news that major Wall Street hedge funds were shorting the stock.
GameStop to launch an NFT marketplace
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According to an announcement on March 17, GameStop planned to launch an NFT marketplace in late Q2. The marketplace would be supported by Immutable X, where it will achieve scalability with a speed of 9000 operations per second. Users will also not have to part with any fees.
Early last month, GameStop had stated that the marketplace would be launched by the end of this year. However, the launch seems to be happening earlier than originally planned.
GameStop is also launching a $150 million fund through IMX tokens. The fund will support content creators and developers on the platform. IMX is the native cryptocurrency for Immutable X.
GameStop is already making moves to support its venture into the NFT sector. The company has hired personnel specializing in blockchain, gaming, ecommerce and other technological areas, which will see the marketplace launched soon.
GameStop meme stock hype
As aforementioned, GameStop shares were attributed to the boom of meme stocks. After reddit users found out that Wall Street investors had shorted the stock, they pumped the price, with the stock gaining from $17 to around $482. The stock has since plunged to around $87, but it is still a major year-on-year gain.
Following this stock pump, GameStop shares were saved from a major plunge that had resulted in the stock dipping to $2.50. During the past fiscal quarter, Gamestop has generated $2.254 billion. Venturing into the NFT space is a good move for GameStop. However, the NFT space is currently very competitive. OpenSea is currently the largest NFT marketplace by trading volumes. Coinbase is also planning to unveil an NFT marketplace soon to raise the sector’s competitiveness.