A new online page for a non-fungible token (NFT) platform was discreetly launched by GameStop.
The aforementioned website seems to further feed speculations that GameStop is preparing to completely commit to the emergence of nonfungible tokens, or NFTs, a new digital asset that uses blockchain technology to register ownership and avoid duplication of digital assets.
On top of a digital backdrop, is a huge circle with the words “non-fungible token” written on it.
Gamestop’s Focus on NFT
According to many sources, GameStop is in the process of filling roles for persons who are proficient in cryptocurrencies, blockchain technology, and NFTs.
The site discusses Gamestop’s new team:
“We welcome exceptional engineers (solidity, react, python), designers, gamers, marketers, and community leaders. If you want to join our team, send your profile or something you’ve built to: email@example.com.”
To a small degree, the project’s precise scope is unknown, however, GameStop’s team prominently features a link to an Ethereum address on the website, pointing to the project’s Ethereum technological backbone.
“Game On Anon” is declared in the smart contract code and has connections to the GameStop NFT website. In addition, the smart contract code has indicated that any prospective GameStop-released NFTs would employ Ethereum’s ERC721 standard. A specialized token, GME, is also referenced by the code.
For anybody who is wondering, the targeted audience for whatever NFT offer comes from GameStop’s staff is shown on the webpage as an animated image: “Entrust the players with power. Creative people deserve power. Make power available to the collectors.”
Gamestop’s Rise in the Investment Arena
As a consequence of an influx of demand for video games in January 2021, short-sellers suffered big losses while certain hedge funds lost huge sums of money.
GameStop’s public float had been sold short by about 140% of its total float, and the frenzied rush to buy and hold on to assets propelled it even higher. In February of this year, members of the subreddit r/wallstreetbets, an Internet forum on the social news network Reddit, initiated the short squeeze by buying shares in companies that they thought would go bankrupt. However, some hedge funds have gotten involved.
As the day began, the company’s stock was trading at over $500 a share, which was roughly 30 times the $17.25 purchase price. A number of other extremely shorted stocks also saw their prices surge.
For certain brokerages, particularly those using app-based services like Robinhood, on January 28, 2017, including GameStop securities, they were unable to deposit collateral sufficient to enable them to carry out their customers’ orders. An overwhelming majority of politicians from both parties criticized the decision, as well as charges of market pressure from top CEOs.
Hundreds of class-action lawsuits have been filed against Robinhood in the United States, and the U.S. House Committee on Financial Services conducted a congressional probe about the occurrence. As a consequence of major brokerage firms discontinuing to acquire GameStop and other companies, the aggregate market capitalization of cryptocurrencies and metals futures increased.
As a result, pricing and uncertainty have been very high since late January. On February 24, the stock price of GameStop jumped from $2 to $4 in the span of 90 minutes and then gradually fell to approximately $200 a share over the next month.