GameStop (NYSE:GME) steps into the NFT space with the launch of a new platform.
Key Takeaways
- GameStop has shared a website and Ethereum contract for a new NFT platform.
- The smart contract also hints at a GME token launch.
- Meme stocks like GameStop, AMC Entertainment (NYSE:AMC) are regaining bullish strength backed by retail investment.
GameStop is launching an NFT platform on Ethereum. The company is encouraging game developers and other industry experts to contribute.
GameStop Joins NFT Craze
GameStop is getting into NFTs.
The video game retailer has created a website and shared a smart contract for a new platform that will run on Ethereum.
The source code is titled “Game on Anon” and features a link to the website, where developers, designers, and other market leaders have been invited to contribute towards development.
On top of that, there is also a possibility of the launch of a GameStop token on Ethereum. The tracker “GME” has been set on the contract. However, it contains no further information, and the supply is currently zero. Some Ethereum users have tried to interact with the smart contract since the launch. However, the blockchain explorer indicates that none of the transactions went through.
The plans for the NFT platform were set in motion last month after the firm opened a vacancy for a security analyst with experience in “blockchain, cryptocurrency, and NFTs.”
NFTs have a strong use case in the video game industry as they can be used to tokenize in-game assets. Thus, there’s potentially a strong market opportunity for GameStop.
The First Meme Stock
The online retail company thrived in the lowest rungs of the market and was heavily shorted by hedge funds throughout 2020. However, things turned around for GME after a period of retail investment mania fueled by social media platforms like Reddit, Twitter, and TikTok. GME is the first of many shares that have been dubbed “meme stocks.”
While the name “meme stock” points to humor, these companies are no joke in the stock market. They surprised traders earlier this year with astronomical gains backed by retail euphoria and a short squeeze of large hedge funds.
GME surged 30 times from year opening to peak at $483 on Jan. 28. After a 91% correction to lows following the pump, its price has been picking up lately.
Share prices of meme stocks like AMC Entertainment Holdings Inc, Koss Corporation (NASDAQ:KOSS), and Naked Brand Group Ltd (NASDAQ:NAKD) all recorded double-digit gains at yesterday’s closing.
GME rose by 16.1% Monday, last trading at $209.4.