Over $3M Spent on GameStop’s NFT Marketplace

GameStop’s experiment with NFTs got off to a surprisingly good start. Since the NFT market launch on Monday, over $3.5 million has been spent on the platform’s top 50 NFT collections. With a royalty rate of 2.25% per sale, GameStop’s marketplace generated approximately $67,500 in revenue for the company.

This is not a game-changing coin, but more than many expected. GameStop’s NFT marketplace launch took place in the middle of the crypto winter, Seeing interest in NFTs fall alongside the tanking value of bitcoin and ether. Ether, in which most NFTs are bought, has dropped nearly 70% since the start of the new year. Most of GameStop’s customers categorically reject NFTs. Ubisoft’s trials and Square Enix for integrating crypto and NFTs into games massively rejected by players.

GameStop hopes to compete with OpenSea, the largest NFT marketplace. According to Dune analytics, around $17 billion was spent on Ethereum-based NFTs in the OpenSea market this year. OpenSea takes a 2.5% cut from every NFT sold on its platform, meaning revenues will be around $425 million in the last 7 months.

GameStop’s NFT market got off to a stronger start than crypto exchange CoinBase. After much delay and anticipation, CoinBase’s NFT marketplace launched on April 20 and has since seen around $3 million in volume, according to Dune Analytics. GameStop’s largest collection of NFTs in the NFT market is MetaBoy with Game Boy themed pixel art. More than $1 million was spent on MetaBoy NFTs alone.

GameStop’s business has struggled over the past decade as people increasingly buy games online; this is a clear enough trend that Sony has presented. digital only PlayStation 5
. With a changing customer base, the company is now looking at the lucrative NFT market as it used to. worth $25 billion last year. In addition to its newly opened marketplace, GameStop also offers its own crypto wallet.

NFTs tokens minted from a blockchain confirming ownership of a digital asset; they are the digital equivalent of a title deed to a property. While critics say NFTs are a temporary craze that will eventually turn into uncertainty when the bubble goes well and truly bursts, its proponents argue that NFTs will change the internet economy forever.

Unfortunately for GameStop, the recent crypto crash has sparked enthusiasm for all things blockchain. NFT sales on OpenSea fell from $2.5 billion in May to $696 million in June. With ether around $1,000, there’s enough market activity for an established company like OpenSea to keep up, but it will be much more difficult for a newcomer like GameStop to make their way in the market.

GameStop’s marketplace is Ethereum-based, meaning it doesn’t sell NFTs built on blockchains like Solana and currently only offers artwork. GameStop seems to be relying on its existing client base to engage in NFT trading as the market is not currently offering it. Blue chip collections like Bored Ape Yacht Club, Doodles or Cool Cats — Collections that are popular with NFT traders, but not suitable for most people.

Eventually, the market will expand to encompass “web3 game“ refers to games using NFTs and cryptocurrencies. To that end, GameStop has formed a partnership with Immutable, a company specializing in blockchain games. The two have offered a $100 million grant to Web3 developers participating on the platform.

It comes at a turbulent time for GameStop. Last week, the company fired its Chief Financial Officer amid wider layoffs within the organization. “Change will be constant as we develop our trading business and launch new products through our blockchain group,” GameStop CEO Matt Furlong told Kotaku in an email to staff. Said. The company’s most recent quarterly financial report at the end of April revealed a net loss of $157 million.

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