GameStop stock is up 26% after the company announced its entry into the NFT and crypto industries

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GameStop, a video game, consumer electronics, and telecom services retailer based in the United States, has announced its entry into the Non-Fungible Token (NFT) market. GameStop’s Nasdaq stock, GME, jumped 26 percent in after-hours trading on the announcement.

According to a Wall Street Journal story from January 6, GameStop has hired more than 20 individuals to head its newly established NFT subsidiary. The division will develop an online platform to facilitate the purchase, sale, and trade of gaming NFTs.

At the same time, crucial relationships with two encryption firms are being formed to create NFT games and blockchain projects jointly.

Non-fungible tokens (NFTs) are cryptographic tokens representing a one-of-a-kind digital asset that cannot be traded. In applications that need unique digital things, such as encrypted art, digital collectibles, and online games, and NFT is employed.

Later this year, the business will ask chosen game creators and publishers to advertise NFTs on its marketplace. GME shares were up 23.04 percent in after-hours trade at $161.22 at writing.

Last January, retail investors banded together on Wall Street stakes site Redditors, sending GameStop and AMC stock soaring.

After GameStop shocked the trading world, flying to unimaginable heights after a group of Redditors pushed its valuation upon subreddit r/WallStreetBets, Robinhood, along with other trading platforms such as Ameritrade, has moved to revoke the purchase of GME.

Hedge fund managers who are known short sellers of GameStop stock are already losing money due to the increased retail demand for the stock.

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