GameStop Corp’s has plans to broaden its non-fungible tokens (NFTs) marketplace. Gamestop’s efforts and partnerships with crypto firms have elevated the video game retailer’s shares by 17.5% in premarket trading and has even led to an increase in other meme stocks prices.
GameStop (NASDAQ: GME) shares have been plummeting recently. In fact, the video game retailer’s stock isn’t the only one that was languishing. Several other memes stocks forged the same path as interest from retail investors diminished.
In addition to that, the largest factor that contributed to the price increase of the stock was the bullish rally led by Reddit users such as the R/WallStreetBets Reddit group. The meme-stocks investors pushed the retailer’s stock to all-time highs in early 2021.
After the interest dwindled from investors, GameStop saw a decline in price. The stock plunged from an all-time high price of $325 on January 29, 2021, to as low as $134 as of this writing.
However, GameStop isn’t relying on investors’ speculation or Reddit groups to increase its value. The firm has announced that it’s building an online hub for trading in-game NFTs and that it’s close to closing deals with two crypto companies to help develop blockchain-based games, according to a media report.
NFTs are digital assets that are recorded on a blockchain. In the blockchain industry, a nonfungible asset is one that can’t be replicated and doesn’t have an identical version of it anywhere on the blockchain. This means that an NFT owner has full ownership of his asset, and that’s what makes these assets valuable. NFTs surged in popularity in 2021, and plenty were sold for millions of dollars.
Other stocks favored by small-time investors – Koss Corp and Bed Bath & Beyond – rose 4.5% and 2.2%, respectively, while AMC Entertainment Holdings Inc advanced 5%.
Ether, used to buy NFTs, has slumped to $3,225.79, levels last seen in early October.
“Meme stocks are speculative rather than fundamental and, to a degree, cryptos are also little speculative in nature… too much of an exposure to cryptos could have an effect on the balance sheets of these companies,” Mirabaud analyst Neil Campling said.