GameStop Stock Skyrockets 30% Following NFT Division Announcement

GameStop announced that a 20-person division would work on developing the marketplace. Read the full article by Rahul Nambiampurath “Neither this post nor any other on cryptofal.com should be taken as financial advice. It is not.”

GameStop was almost dead in the water before the vigilantes on Reddit decided to put a short squeeze on the hedge funds that were trying to profit off of GMEs shortcomings. This was the beginning of a retail trader movement that allowed regular people to get involved in the stock market on their own. Since then there has not been much public news around GameStop but that does not mean they are not working on something behind the scenes.

In May GameStop announced that they were going to be diving into NFTs as the space was picking up a lot of steam at the time. GME will be hiring a team of at least 20 people that will be building the NFT marketplace with the anticipation of launching by the end of the year. The price of the stock shot up 30% just from this announcement. The entire NFT market did over $40 billion in business for 2021.

The NFT community is growing rapidly but there is not much of a mainstream light on it yet and that’s what having a name like GameStop can do to push it forward. Right now, the largest NFT marketplaces are OpenSea, Nifty gateway, and Rarible but they are mostly are not the most user-friendly especially for people that are not very familiar with crypto. Using web3 wallets can be confusing and very expensive creating another barrier to entry.

Not everyone is a fan of NFTs and sometimes you can not blame them because of the mass amount of pump and dump schemes that take place and all the people getting their wallets compromised. This is because it is so new and similar to the ICO days of crypto people will take advantage of until users become more aware of what they are doing and regulations evolve.