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GameStop launches NFT marketplace

With Ether down nearly 70% this year, and NFT sales falling precipitously, GameStop's NFT marketplace is just in time to get its foot in the door of the NFT market, valued at US$25bn last year

GameStop Corp (NYSE:GME) has launched a marketplace for nonfungible tokens (NFTs) despite a slump in the market amid a broader Web 3.0 downturn.

Beta testing of the platform is now open to the public, which can connect to any digital asset wallet, including the recently launched GameStop Wallet, the company said.

However, the cryptocurrency market was worth around US$3trn last November but now worth less than US$1trn, according to data from Chainalysis, with NFT sales in June at a 12-month low of US$1bn.

According to Dune analytics, about US$17bn has been spent on Ethereum-based NFTs on the OpenSea marketplace this year.

Based on OpenSea's 2.5% cut of every NFT sold on its platform, revenues in the last seven months would be about US$425mln.

In March, beta users of GameStop’s NFT marketplace got access to improved speeds and lower costs and could make deposits ahead of the full launch.

With the videogame retailer led by Chewy founder and activist investor Ryan Cohen, its NFT launch is meant to be a major push towards investments in a digital future.

At the start of the month, GameStop also announced plans for 4-for-1 stock split.

In spite of attempts by some games companies, such as Ubisoft Entertainment, Team17 and Square Enix, gamers have so far resisted the entry of NFTs into the gaming world, but GameStop hopes to sell NFTs directly to players instead of including them in games.

In part due to its massive real estate footprint and the rapid shift of the gaming industry online, GameStop is attempting to build on its 'meme stock' popularity and effect a turnaround after several years of financial struggles.

With a fluctuating customer base, the company is now eyeing the lucrative NFT market, which was valued at US$25bn last year.

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