It’s no secret that cryptocurrency and blockchain-associated grifts are hot right now. While the perceived value of a cryptocurrency often rises and then drops dramatically, its actual monetary value falls through the floor. And GameStop is getting into NFTs. That’s great news for the gaming industry. But is GameStop’s move a smart move?
Interest in NFTs has fallen 80% since January
Cryptocurrencies have suffered in recent weeks, but interest in NFTs has held up. The price of Bitcoin has fallen nearly 50% since November, and the value of Ether is down more than half as well. However, the value of top-rated NFT collections has decreased at a much slower pace, and some of them have even gained in value. In this article, we’ll examine what’s driving this decline and what investors should do to keep their money safe.
While the value of the first tweet by Twitter co-founder Jack Dorsey has dropped exponentially, many owners have had to deal with falling prices. Last year, an NFT based on the first tweet by Jack Dorsey sold for $2.9 million at an auction, while an NFT based on the first tweet of hip-hop singer Snoop Dog has risen to $25.5 million.
Supply is outpacing demand
While it’s not clear how the crypto/NFT market will pan out, GameStop is jumping into the space. The retailer has hired more than 20 people with blockchain gaming, technology and e-commerce expertise in the hopes of building a marketplace. They are also asking select game developers to list their tokens on the platform when it launches later this year. In other words, GameStop is getting into the game industry just as the rest of the market is taking a plunge.
While the cryptocurrency market has remained incredibly volatile, the NFT market has experienced a 92% drop in sales and “active wallets” since November. This is largely due to rising interest rates that have stifled the poorest and made the richest less risky. However, GameStop is betting on the misconception that jpeg ownership is the future of gaming.
GameStop is getting into NFTs
In a world full of digital currency, GameStop is venturing into the crypto and NFT world. There are even some NFT marketplaces that include tokens from video game publishers. OpenSea raised $300 million in venture capital and is now valued at $13.3 billion. However, investors should be cautious about GameStop’s plans, since its upcoming venture could result in massive losses.
The retail giant is reportedly close to signing partnerships with cryptocurrencies, such as bitcoin, to share its technology and invest in the development of NFTs and blockchain games. The company plans to invest tens of millions in these new technologies later this year. It has been a year since GameStop brushed with bankruptcy after years of losses. Last year, the company was the darling of hypercapitalist stock guys, and it also hired a former pet food mogul to head its board.
GameStop stock jumped 57% on Thursday
After announcing higher holiday online sales, GameStop’s stock has soared over 50% in just four days. On Thursday, its share price hit a five-year high of 57%. That increase may be due to renewed investor excitement over the company. But why is the stock jumping so much? How do investors get into the stock? Read on to find out. Here’s a look at why GameStop is so hot right now.
The stock is jumping because GameStop is a “meme” stock, which means that it is volatile compared to its peers. The stock’s jump was fueled in part by the influence of Chewy founder and GameStop board member Ryan Cohen. Cohen is known for pushing retailers toward e-commerce, which could unlock faster growth for the company. Last quarter, GameStop barely rose at all.