GameStop NFT Marketplace – A Complete Explanation!

Most people know GameStop from the diverse selection of video games, or the ruckus the company’s stock has caused. However, GameStop has also discovered the world of blockchains and cryptocurrencies! As a result, the GameStop NFT Marketplace has become a reality. You can also trade non-fungible tokens through this marketplace! The video game giant has thousands of brick-and-mortar stores, but now also makes it possible to complete transactions on the blockchain.

More and more companies are seeing the benefits of blockchain technology and are trying to apply this technology in their business. Big companies, such as Samsung and Microsoft, have been using blockchain technology for years. With GameStop, another big name has joined the list of companies. Want to know more about GameStop? Or are you curious about the video game giant’s marketplace? You will discover it in this blog!

Look quickly

Wondering what GameStop’s NFT marketplace looks like? You can see a tutorial in the video below!

What is GameStop?

GameStop is a company where you can buy video games, electronics and merchandise. This American company has more than 5,000 branches in the United States, Canada, Australia, New Zealand and Europe. You may come across GameStop branches under different names such as Micromania and ThinkGeek.

This publicly traded company (NSYE: GME ) was founded in 1984 by Leonard Riggio, Daniel DeMatteo and Richard Fontaine. In almost 40 years, the idea of ​​these 3 men has grown into a company that operates worldwide and has more than 16,000 employees.

As the world becomes more and more digital, GameStop has struggled in recent years. The range of computer games has also become increasingly digital. Thanks to Xbox Live, PlayStation Network and Nintendo eShop, the digital offering continues to expand, which has reduced GameStop’s market. This was already reflected in 2018, when the company suffered a loss of more than 600 million dollars.

GameStop is its own NFT marketplace, built on the Ethereum blockchain, and is also moving towards the digital market. By the end of 2021, there was already a lot of speculation about these plans, and at the beginning of 2022, these plans were also confirmed. GameStop began hiring additional employees focused on blockchain gaming (GameFi), e-commerce and technology. Digitization has become a reality at GameStop, where the company is trying to catch up.

GameStop card squeeze

Not only the poor numbers in 2018 were a sign that the company was not doing well. Several macro factors also played a role in GameStop’s position. For example, Covid made sure that the branches had to close, and digitization was a danger for the company. The position that GameStop was in didn’t look good, and several mutual funds saw this as well.

This resulted in an increasing number of short positions in the stock market, which put great pressure on GME’s share price. Mutual funds loudly said the $20 share price was way too high for the company. Users of the Reddit platform discovered this, and a discussion arose about the development surrounding GameStop’s stake. Several GameStop enthusiasts and investors (such as WallStreetBets) got in touch this way and an idea was born.

The idea was to hack the mutual funds by jeopardizing their short positions in an organized manner. This was done by going massively long on the shares of GameStop. The number of shares in circulation at GameStop wasn’t very high, so the people on Reddit thought that with a small group they could have a big effect on the price.

Thanks to investor action on Reddit, the price of GME rose! For investment associations who had gone short was very bad news as they saw their losses mount. To avoid liquidations, these parties have to close their positions at a loss, causing the price to rise even faster. After all, the sellers are leaving the market, which is positive for the buyers. This phenomenon is also known as a short squeeze.

Melvin Capital, among others, appeared to be a victim of the short squeeze, with the company having to raise more than 2 billion in capital to stay afloat. Surprisingly, Melvin Capital managed to handle the situation wisely and even took advantage of the price action at GME.

GameStop NFT Marketplace

This NFT Marketplace is described by her company GameStop as “a non-custodial, Ethereum Layer 2-based marketplace that enables parties to truly own their digital assets represented and secured on the blockchain.” The marketplace is specifically built on Loopring, a Layer 2 scaling solution.

Loopring makes the GameStop wallet much cheaper and more efficient than the wallets based on the Layer 1 Ethereum network. Users can connect a number of crypto wallets to it, including the company’s own GameStop wallet. Additionally, these NFTs can also be transferred between collectors and can even be re-traded on other marketplaces.

Leave a Comment