GameStop to develop NFT and Cryptocurrency Marketplace: WSJ

By Ishika Dangayach on Jan 07, 2022 | 05:37 AM IST

• The company has recruited more than 20 people to oversee the NFT and crypto space

• Shares of the gaming retailer were up over 18 % in premarket on Friday

Video game retailer GameStop Corp is developing a marketplace for nonfungible tokens and establishing cryptocurrency partnerships before the end of the year, WSJ reported.

Shares of the gaming retailer were up over 18 % in premarket on Friday, extending the pace of after-hours action.

The company has recruited more than 20 people to oversee the section, which is developing an online center for buying, selling, and exchanging NFTs of virtual gaming products such as avatar clothing and weaponry, the report said.

Grapevine, Texas-based GameStop is also nearing agreements with two cryptocurrency companies to exchange technology and co-invest in the creation of blockchain and NFT-based games, as well as other NFT-related initiatives, as per the report.

NFTs are a type of technology that allows digital assets to be kept as evidence of ownership on a blockchain. The blockchain functions as a public ledger, allowing anybody to check the legitimacy of the NFT and who owns it.

NFT prices have increased in recent months, fueled by cryptocurrency holders' excitement about the technology's potential.

Recently industry's largest publicly traded videogame businesses including Ubisoft Entertainment, Zynga Inc., and Square Enix Holdings Co. have introduced in-game NFTs.

Last year, the business was also in headlines because of the "meme" stock trading spree, in which ordinary investors inflated stocks on social media platform Reddit and brokerage site Robinhood, causing numerous hedge funds to lose money.

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