GameStop launches cryptocurrency and NFT wallet

Video game retailer hopes that Web3 and the metaverse will reverse recent poor performance

On Monday, GameStop launched a digital asset wallet for cryptocurrencies and non-fungible tokens (NFTs). Although a beta version, the company is now one step closer to launching its much-anticipated NFT marketplace.  

Digital Wallet

The video game retailer stated that the wallet will “allow gamers and others to store, send, receive and use cryptocurrencies and non-fungible tokens across decentralised apps without having to leave their web browsers”. 

In February, the company partnered with Immutable X, a layer 2 system which sits on top of the Ethereum blockchain, to develop its marketplace. 

The GameStop Wallet is described as “a self-custodial Ethereum wallet”, which can be downloaded as a Google Chrome extension. 

Melvin Capital

GameStop became a favourite for retail traders during January 2021’s ‘meme stock’ trading craze. Although the company’s stock has fallen by over 70% since its $343.21 52-week high last August, it can be said to have weathered the storm wrought by Covid-19 and short-minded hedge funds. 

Its primary antagonist was not so durable, however. Last week, Melvin Capital announced its intention to shut down. Once one of the most successful hedge funds on Wall Street, the firm found its substantial short position in GameStop squeezed by retail traders. 

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Having started 2021 with $12.5bn in assets under management, the fund ended April this year with just $7.8bn. 

Recent Performance

GameStop will hope that its pivot towards Web3 and the metaverse will reverse its recent poor performance. 

The retailer reported a surprise net loss of $141m for its fiscal fourth quarter. Analysts had predicted earnings of $0.84 per share. Instead the company reported a loss of $1.86 per share. 

Having traded up by 3% in pre-market, GameStop stood 1.7% lower after the opening bell at $94.00.

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