A month after a report that GameStop was partnering with cryptocurrencies and hiring for its NFT marketplace, one partner has announced details on how the video game retailer could enter the sector.
What Happened: Immutable (CRYPTO: IMX) will partner with GameStop Corp (NYSE:GME) on its new NFT marketplace.
“We’re thrilled to announced that Immutable is taking another leap forward in the gaming & blockchain industry by partnering w/GameStop to power their NFT marketplace,” Immutable tweeted Thursday morning.
Immutable is an Ethereum (CRYPTO: ETH) Layer 2 protocol that will provide fast and 100% carbon neutral transactions with zero gas fees, according to the announcement.
“Our integration will allow current & future NFT projects/economies to access more liquidity & gaming content w/mainstream users.”
GameStop and Immutable are launching a $100-million pool used to provide grants for creators of NFT content and technology.
Immutable said more details will be unveiled of the partnership in the future. Those interested in the project and partnering can access the GameStop NFT website here.
“Immutable is excited to be working with GameStop and leading gaming publishers to support genuine power to players,” Immutable co-founder Robbie Ferguson said. “Gaming is now bigger than music and movies combined.”
Related Link: How To Buy NFTs
Why It’s Important: The non-fungible token market is fast growing and video games are one of the sectors that could see continued growth from the sector.
The GameStop NFT marketplace is being built as a place that serves in the middle of consumers and video game publishers. Using a cryptocurrency with zero gas fees could appeal to gaming companies and consumers.
The marketplace will offer in-game items that can be bought, sold and traded including digital real estate, skins and weapons.
The comments from Ferguson above suggest that gaming companies are already exploring using Immutable and/or the GameStop marketplace for NFTs.
Immutable X has been used by several existing games including “Gods Unchained,” which is one of the three largest games on the blockchain by players, according to VentureBeat.
“GameStop’s NFT marketplace will bring the power of an insanely strong community to its over 50 million users and every developer that launches on it,” Ferguson said.
GameStop’s existing customer base and large database of people interested in video games is expected to provide a boost to launching the marketplace.
GameStop investors could be excited to see rumors finally advance to the partnership stage. GameStop had job postings for people with NFT experience back in April 2021 and was reported to be launching a NFT and cryptocurrency division in January 2022.
Some analysts are skeptical of NFT plans by GameStop working and providing long term value for the company, as video game companies could launch their own marketplaces.
Some gamers have rallied against NFT launches in games and led companies like Electronic Arts Inc (NASDAQ:EA) to scale back on plans for NFTs.
GME Price Action: GME shares are up 2% to $102 at the time of writing.
IMX is up 30% to $3.96 over 24 hours.
