GameStop shares are up 22.3% today. Why?

**What happened **

A good start to the day for video game retailer GameStop after the company announced its deal with NFT. Shares were up 22.3% in early trading, but are starting to lose that quick rally and were trading 8% higher at 10:40 a.m..

So

The Wall Street Journal reported after the market closed Thursday that Gamestop is building a non-fungible token (NFT) marketplace and a partnership in the crypto space. It has employed about 20 people for the project and management believes it can bring the brand to a valuable position in the market.

NFT allows owners to verify digital ownership of digital assets such as avatars or in-game weapons. The NFT marketplace will be the place to buy and sell NFT. Gamestop's idea is to have a brand big enough to attract users to its NFT marketplace rather than others, which will also attract game developers.

Now what

This announcement and a new GameStop website inviting creators to join the platform show that the company sees an exciting future in NFT. And with OpenSea, Ethereum's largest NFT marketplace, recently valued at $13.3 billion, it's easy to see why.

What's unclear is whether a big brand like this will be able to break into the world of cryptocurrencies and NFT. It's a positive step, but converting a company that sells video games to NFT is excellent. The company may succeed, and but there are many smaller players and incumbents that are eyeing the same space, so no or Guarantee that Game today.

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SOURCE

Hoium, T. (2022, January 7). Why GameStop Stock Jumped 22.3% Today. The Motley Fool. Retrieved January 7, 2022, from https://www.fool.com/investing/2022/01/07/why-gamestop-stock-jumped-223-today/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article