This new development by GameStop is to leverage the potential of cryptocurrency and web3 technology.
GameStop announced on Monday that its new crypto and NFT wallet service is now available.
The retailer announced that its wallet is now available as a Google Chrome extension and that it will accept transactions on its upcoming NFT marketplace. The wallet is self-contained and runs on Ethereum.
In premarket trading, GameStop’s stock rose more than 3%. However, they are down nearly 40% this year due to a market crash.
The wallet’s release also coincides with a sharp decline in the cryptocurrency market, particularly in the aftermath of the recent Terra crash.
GameStop Makes Crypto Push This Year
GameStop announced the launch via Twitter. The move represents another step forward in the stores’s eagerly anticipated foray into crypto and web3 technology.
The retailer’s NFT marketplace will go live in the coming months. The company has also recently launched a marketplace website.
GameStop’s foray into web3 is part of Chairman Ryan Cohen’s turnaround strategy.
Cohen is well-liked among the stores’s retail shareholders, who helped boost the company’s valuation during a “meme stock” rally last year.
The rally also prompted its management to consider alternatives to physical videogame retailing, which is rapidly losing market share.
While GameStop has ambitious plans for cryptocurrency, they are being carried out in the midst of one of the worst crypto crashes in recent memory. So far in May, the total crypto market valuation has dropped over $500 billion, with little prospect of a near-term recovery.
NFTs are also losing popularity, with top projects such as Bored Apes and Azuki losing more than most cryptocurrencies.
The store will also enter a highly competitive market, as major exchanges such as Coinbase and Binance already provide self-custodial wallets. OpenSea and Looksrare, both NFT marketplaces, have a stranglehold on the market.
