GameStop shares have jumped as much as 20% Friday morning after an article in the Wall Street Journal reported the company is creating its very own non fungible token, or NFT, marketplace. After a strange yet exciting soar during 2021 the video game retailer was branded as a “meme stock” with lots of attention on Reddit, shares have fallen almost 12% since the new year as of Thursday’s close, though that narrowed down to 6% year-to-date as of midday Friday.
NFTs are a rapidly growing space. The largest and most well-known marketplace, OpenSea, is valued at $13.3 Billion. OpenSea currently has few competitors, but that may change as firms like GameStop enter the market. GameStop has hired more than 20 people to run the new unit, according to the Wall Street Journal. Last year the company reshuffled its executive board and placed Chewy co-founder Ryan Cohen as chairman. The new NFT market could signal Cohen’s vision to transform GameStop from a traditional brick-and-mortar retailer to a tech-centered e-commerce powerhouse
The company has also hired former Executives from Amazon as CEO and CFO. The NFT marketplace news comes almost a year after GameStop shares began surging thanks to amateur daytime warrior traders on Reddit’s WallStreetBets forum, popularizing the “meme stock” The stock soared up to 1,600%, heavily squeezing short sellers on the real Wall Street. GameStop stock is up more than 673% over the last 12 months, but it’s still well below its all-time high.
With the rise of NFT’s its no doubt there’s money to be made and its not just the small time traders and crypto enthusiast that are looking to get on board. Lets just hope Gamestop avoids trading NFT’s like they do trading in games the last thing anyone wants is having 60 NFT’s they bought for $50,000 and then turning them around for 50 cents a piece. With this update from Gamestop its unlikely that we wont be hearing from other companies looking to get into the NFT universe and see what comes next.