GameStop could launch an NFT platform in late 2022
GME is reportedly seeking partnerships with game developers and publishers to list NFTs
A new NFT platform from GameStop Corp (GME) could debut in the metaverse in 2022, according to the Wall Street Journal.
The financial publication, which first reported the news, said that according to sources familiar with the meme stock company, it is developing a new division that will implement a marketplace for non-fungible tokens and establish cryptocurrency partnerships.
The news prompted a reaction from investors on the New York Stock Exchange, with GME shares projected to see a 19% gain in the pre-market session at the time of writing, according to MarketWatch.
The stock closed the previous trading session at $131.03, 1.3% higher, while in the last five days it has witnessed a 15% downtrend.
GME NFT platform
According to the Wall Street Times, the company is seeking partnerships with game developers and publishers to list NFTs on its marketplace when it launches later this year.
The blockchain on which the platform will operate remains unknown – officially. However, the company seems to hint at Ethereum as the model one, as the symbol of the digital silver is camping on the GME NFT website.
What is your sentiment on GME?
If confirmed, GME will probably opt to launch NFT collectables related to its games range.
Gamestop price prediction
The company is known as a meme stock, which means much of the movement in GME stock is not directly related to the company’s performance. Instead, its price reacts to surges in viral activity on social media and the like, and it is often subject to so-called meme or long-short cycles.
Generally, as a meme stock company releases new information, a bullish spiral will start regarding its stock price, followed by a profit-taking one.
According to most of the rating agencies, GME stock is overpriced, with the average target price estimated to be around $30, while ‘sell’ seems to be the most common position. However, in September 2021, the rating agency Jefferies adjusted its GME target price to $180 from $190, with a ‘hold’ position, and is not the only one.
GME’s price-to-book value – derived by comparing a company’s book value (the sum of all its assets, minus its liabilities) to its market capitalisation (the sum worth of all of its shares) – is standing at around 5.7.